The IRS on Sept. 8 issued final regulations on the determination of minimum required pension contributions. The rules will be effective with their publication in the Federal Register, which will take place on Sept. 9; they will apply to plan years beginning on or after Jan. 1, 2016.
These regulations finalize the rules proposed in REG-108508-08, published April 15, 2008, that provide guidance regarding the minimum required contribution rules that apply to sponsors of single-employer DB plans under Internal Revenue Code Section 430 and the related excise tax rules of Code Section 4971.
The IRS says that these final regulations are “generally similar” to those proposed regulations, but that a number of changes were made in response to comments it received on them. In addition, the final regulations reflect certain changes made by legislation passed since then, notably WRERA, the CSEC Act, and HATFA. The final regulations also provide the IRS with the flexibility to extend certain regulatory deadlines.
The final regulations provide guidance on the determination of minimum required contributions for single-employer defined benefit plans. They also contain final regulations regarding the excise tax for failure to satisfy the minimum funding requirements for DB plans. These regulations affect sponsors, administrators, participants and beneficiaries of DB plans.
The final regulations also make changes to:
More detailed analysis of T.D. 9732 will appear in an upcoming ASPPA asap.
These regulations finalize the rules proposed in REG-108508-08, published April 15, 2008, that provide guidance regarding the minimum required contribution rules that apply to sponsors of single-employer DB plans under Internal Revenue Code Section 430 and the related excise tax rules of Code Section 4971.
The IRS says that these final regulations are “generally similar” to those proposed regulations, but that a number of changes were made in response to comments it received on them. In addition, the final regulations reflect certain changes made by legislation passed since then, notably WRERA, the CSEC Act, and HATFA. The final regulations also provide the IRS with the flexibility to extend certain regulatory deadlines.
The final regulations provide guidance on the determination of minimum required contributions for single-employer defined benefit plans. They also contain final regulations regarding the excise tax for failure to satisfy the minimum funding requirements for DB plans. These regulations affect sponsors, administrators, participants and beneficiaries of DB plans.
The final regulations also make changes to:
- Treas. Reg. §1.430(f)-1, concerning elections regarding a plan’s prefunding balance and funding standard carryover balance;
- Treas. Reg. §1.430(h)(2)-1, concerning interest rates; and
- Treas. Reg. §1.436-1, concerning benefit restrictions.
More detailed analysis of T.D. 9732 will appear in an upcoming ASPPA asap.
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