By Marc Fosse and Yatindra Pandya (January 12, 2018, 10:30 AM EST) -- On Dec. 8, 2017, the Internal Revenue Service released Notice 2017-75 which provides limited relief from Section 409A of the Internal Revenue Code for tax payment distributions from a code Section 457A nonqualified deferred compensation arrangement (a 457A plan). Taxpayers, who are required under code Section 457A to include the value of their 457A plan benefit in income before receiving a distribution from the 457A plan, may find out that they have an unexpected tax hit without a plan distribution to cover the tax liability. The relief provided under the notice allows affected taxpayers to distribute enough funds from their 457A plans to pay their resulting income tax liabilities without incurring additional penalties under code section 409A....
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