the employee deferred money in a trust and is funded, but must be available to creditors. This is to make the employer junior to general creditors, so that the employee can avoid current inclusion into income. These general deferral of current income conditions of section 83 (as explained in revenue ruling 60-31) would give the 457(f) plan the deferral of tax desired. In 2004, Congress passed a tax act which added Section 409A to the tax code and applies to deferred nonqualified compensation, which also covers some 457(f) plans. This was in response to the executive bonus plans given to key employees at Enron, which allowed them early access to their deferred compensation if financial conditions of the employer deteriorated (i.e., if Enron got into trouble). See also Form 1099-R References External links IRS website page regarding 457 plans Online reference guide for 457 plans IRS Section 457 plan outline (28-pp pdf file) Section 457 of the IRS code - from Cornell Law School 0457 Retirement plans in the United States Tax-advantaged savings plans in the United States