Key Legislative Issues

On September 27, 2010, President Obama signed the Small Business Jobs Act of 2010 into law. This important piece of legislation contains the below provisions impacting ICMA-RC’s 457 and 401(k) plans.

The House of Representatives passed the Small Business Jobs Act of 2010, which includes provisions that would allow for Roth contributions to a 457 plan and in-plan Roth conversions for eligible rollover distributions. The Senate previously voted in favor of the Act, so it will now go to President Obama, who is expected to sign it into law. ICMA-RC is monitoring the legislation and plans to offer these features as soon as practical after the Act becomes law. The President will sign the Act on Monday September 27, 2010.

Provisions to allow 457(b) deferred compensation plans to carry a Roth feature have not been included in the Senate’s version of the tax extenders legislation known as the American Jobs and Closing Tax Loopholes Act of 2010 (H.R. 4213).

The Senate Finance Committee, this week, passed the Tax Extenders Act of 2009, which includes a provision to establish a Roth feature for state and local 457 plans.

The House and Senate recently passed a final conference agreement on legislation commonly known as the Farm Bill, but the Roth 457 provision was dropped from the bill.

Before leaving on a two-week recess, the Senate passed a 30-day extension on farm programs legislation, H.R. 2419, commonly known as the Farm Bill, until April 18, 2008. The bill includes a provision that would provide for Roth arrangements in 457 plans – but the future of these new arrangements is uncertain at this time.

At the end of the 2007 session the Senate passed a bill that included the governmental Roth 457 provision. The Senate Manager's Amendments (Amendment 3855) to the House Farm bill, H.R. 2419, provides for Roth arrangements in 457 plans.

At the end of the 2007 session the Senate passed a bill that included the governmental Roth 457 provision. The Senate Manager's Amendments (Amendment 3855) to the House Farm bill, H.R. 2419, included the Governmental Roth 457 provision.