To amend the Internal Revenue Code of 1986 to increase the maximum amount deferrable under a 457 plan for any year to the amount deferrable for such year under a 401(k) plan, and to require that amounts in 457 plans be held in trust.

Amends the Internal Revenue Code to increase the maximum amount deferrable under a 457 plan (relating to deferred compensation plans of State and local governments and tax-exempt organizations) to the amount deferrable under a 401(k) plan for the same year and requires that amounts in 457 plans be held in trust.