Reasonable Classification Update
By now you know that the “reasonable classification” proposal was stripped from the closed plans proposed regulation on April 14. A huge “Thank You” to all of you who helped us get to this point. As of this writing, we had more than 1,000 practitioners and nearly 900 plan sponsors who had written to Congress. And the data some of you provided was very helpful in meetings on the Hill. It is the willingness of our members to get engaged in addressing our concerns — through grassroots, data collection, PAC contributions and other volunteer efforts — which allows us to accomplish what we do. And that includes getting this proposal withdrawn.
Note that the IRS Announcement
makes it clear that this is not off the table forever, noting only that “further consideration will be needed with respect to issues relating to those provisions.” The data we have collected for this round will be very helpful when this comes up again. In the meantime, let’s enjoy this victory. It sure tastes sweet to me.