Regulatory Issues

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Provided below is information on activities of the Department of Treasury, Internal Revenue Service, Department of Labor's Employee Benefits Security Administration, Pension Benefit Guaranty Corporation, and Securities and Exchange Commission.

On April 18, 2008, the IRS and Treasury issued Notice 2008-47, which invited public comment on items to be included on their 2008-2009 Guidance Priority List. [Notice 2008-47]

On April 11, 2008, the Treasury and IRS released a proposed regulation on minimum required Pension Contributions under PPA. [Minimum Contribution Proposed Reg]

On March 3, 2008, ASPPA submitted a letter of support and appreciation to the DOL on their proposed amendment of the plan asset regulation relating to participant contributions. [DOL Support Letter]

In a February 14, 2008 letter, Rep. George Miller (D-Calif.) and Sen. Edward M. Kennedy (D-Mass.)told the Labor Department that the proposed fee disclosure regulations don't go far enough. [Miller - Kennedy Letter]

On February 1, 2008, the IRS and Treasury issued Revenue Ruling 2008-7, which addresses the application of the accrual rules for pension plans under Code §411(b)(1). [Rev. Rul. 2008-7]

On January 31, 2008, The IRS issued Notice 2008-21, which announces a later effective date than originally proposed for certain proposed regulations under Code §§430 and 436, as added by PPA. [Notice 2008-21]

On January 18, 2008, Rep. Earl Pomeroy (D-ND) sent a letter to Treasury Secretary Henry M. Paulson asking for clarification that a “reasonable interpretation” of PPA is permitted until funding regulations become effective. [Pomeroy Letter]

On January 3, 2008, the IRS released a proposed regulation on diversification requirements for defined contribution plans using employer securities. [Diversification Regulation]

On December 28, 2007, the Treasury and IRS released a proposed regulation on PPA funding rules. [PPA Funding Proposed Reg]

On December 27, 2007, the Treasury and IRS released a proposed regulation on hybrid defined benefit plans. [Hybrid Proposed Reg]

On December 12, 2007, the DOL released a proposed regulation and proposed class exemption regarding a reasonable contract or arrangement under ERISA §408(b)(2). [408(b)(2) Proposed Reg] [408(b)(2) Class Exemption]

On November 16, 2007, the DOL released final regulations and revisions to the 2007 Form 5500 Annual Report. [Revisions Part 1] [Revisions Part 2] [Final 5500 Rule]

On November 8, 2007, the IRS issued proposed regulations on automatic enrollment/automatic contribution arrangements. [Proposed Regulation]

On November 6, 2007, the IRS issued Revenue Ruling 2007-67, which sets forth the definitions and special rules for purposes of the minimum survivor annuity requirements. [Rev. Rul. 2007-67]

On October 23, 2007, the Department of Labor issued the final rule on automatic enrollment and qualified default investment alternatives (QDIAs) for 401(k) plans. [QDIA Regulation]

On October 18, 2007, the IRS issued the 2008 Pension Plan Limitations. [2008 Limitations]

On October 12, the DOL issued Field Assistance Bulletin (FAB) 2007-03, which announced that annual benefit statements for trustee-directed DC plans are not due to participants until the Form 5500 for the plan is filed. [FAB 2007-03]

On October 9, 2007, Treasury and the IRS released Notice 2007-81 providing guidance on the corporate bond yield curve and associated segment rates pursuant to PPA. [Notice 2007-81]

On Oct. 5, 2007, the IRS posted a tip sheet of common mistakes and corrections by 401(k) plan sponsors. [401(k) mistakes]

On September 13, 2007, Treasury sent responses to the four leaders of the House and Senate tax-writing committees confirming application of PPA technical corrections legislation to combined plan deduction limits. [Rangel Response] [McCrery Response] [Baucus Response] [Grassley Response]

On August 28, 2007, the IRS issued proposed benefit restriction regulations pursuant to Code §436. [Proposed Benefit Restriction Regulations]

On July 23, 2007, the IRS issued final Code §403(b) regulations for tax-sheltered annuity contracts. [Final 403(b) Regulations]

On May 31, 2007, the IRS issued Rev. Proc 2007-37 providing a procedure for approval of plan-specific substitute mortality table. [Rev. Proc 2007-37]

On May 31, 2007, the IRS issued Announcement 2007-59 providing that certain features can be added to safe harbor 401(k) plan in mid-year. [Announcement 2007-59]

On May 31, 2007, the PBGC proposed regulations on variable rate premiums for single-employer pension plans. [Proposed Regulations]

On April 30, 2007, the IRS issued final regulations for Designated Roth accounts under IRC §402A. [Final Regulations]

On April 24, 2007, the DOL issued an RFI on participant fee disclosures. [RFI]

On April 4, 2007, the IRS issued final regulations under §415. They include updates to the regulations for statutory changes; and conform changes to regulations under §§401(a), 401(a)(9), 401(k), 402, 416 and 457. [Final Regulations]

On March 13, 2007, the IRS issued Notice 2007-28 providing guidance from changes made by PPA to the IRC §404 deduction rules. [Notice 2007-28]

On March 6, 2007, DOL released an interim final rule clarifying issues relating to the timing and order of QDROs (as required by PPA §1001), effective April 6, 2007. [Interim Final Rule]

On February 2, 2007, EBSA released Field Assistance Bulletin 2007-01 that provides guidance on the statutory exemption for investment advice in the Pension Protection Act of 2006. [FAB 2007-01]

On February 2, 2007, the IRS issued final mortality table regulations for use in determining current liability for participants and beneficiaries of employee plans. [Final regulations]

On January 10, 2007, the IRS issued Notice 2007-7, which provided guidance in the form of questions and answers to certain distribution provisions of the Pension Protection Act of 2006 that are effective in 2007 or earlier. [Notice 2007-7]

On December 23, 2006, the IRS released Notice 2007-8, requesting comments on DB plan issues presented by IRC §401(a)(36), as added by PPA. [Notice 2007-8]

On December 20, 2006, the DOL issued FAB 2006-03 on the periodic pension benefit statement requirements under PPA §508(a), amending ERISA §105 [FAB 2006-03]

On December 20, 2006, the IRS released Notice 2007-6, announcing their processing of determination letter and examination cases amendments to change a traditional DB plan into a cash balance plan. [Notice 2007-6]

On December 14, 2006, the IRS released Notice 2007-03, its 2006 Cumulative List of Changes in Plan Qualification Requirements. [Notice 2007-03]

On December 11, the DOL, Treasury and PBGC published the Proposed Revision of Annual Information Return/Reports to replace Schedule B with separate actuarial schedules for SEPs and multiemployer plans, and proposed the Form 5500-SF. [Proposal]

On December 1, 2006, DOL published a Model Notice of Pending Election of Multiemployer Plan Status, as PPA permits certain plans that would otherwise be treated as multiemployer plans to elect to revoke a prior election to be treated as single employer plans. [Model]

On December 1, 2006, the DOL published two requests for information (RFI) on the PPA provision allowing computer model as an eligible investment advice arrangement for self-directed 401(k) plans and IRAs. [RFI for 401(k)s] [RFI for IRAs]

On November 30, 2006, the GAO issued Report GAO-07-21 “Private Pensions: Changes Needed to Provide 401(k) Plan Participants and the Department of Labor Better Information on Fees. [GAO-07-21]

On November 30, 2006, the IRS issues Notice 2006-107, Rules for Diversification of Publicly Traded Stock in DC Plans, which is transitional guidance on IRC §401(a)(35), as added by PPA §901. [Notice 2006-107]

In November 2006, GAO issued a report PRIVATE PENSIONS: Changes Needed to Provide 401(k) Plan Participants and the Department of Labor Better Information on Fees. The report was requested by Congressman George Miller (D-CA), incoming chair of the House Committee on Education and the Workforce. [GAO-07-21]

On September 27, 2006, EBSA published proposed rules on participant directed individual account plans, default investment alternatives. [Proposed Rules]

On August 29, 2006, the IRS announced in IR-2006-136 that the general effective date for the regulations regarding §403(b) arrangements that were proposed in 2004 will be extended. The final regulations generally will not be effective earlier than January 1, 2008. [IR-2006-136]

On August 21, 2006, the IRS issued Notice 2006-75, Weighted Average Interest Rate Modification, providing the composite corporate bond rates from December 2005 through July 2006, and the resulting corporate bond weighted averages for plan years beginning January 2006 through August 2006. [Notice 2006-75]

On August 9, 2006, the IRS published final regulations on certain issues under §411(d)(6) Protected Benefits, Including Optional Forms of Benefit that contains information on the interaction between the anti-cutback rules of §411(d)(6) and the nonforfeitability requirements of §411(a). [Final regulations]

On July 21, 2006, the Treasury, DOL and PBGC released its proposed rule requiring the electronic filing of Form 5500, Annual Return/Report of Employee Benefit Plan, for plan years beginning on or after Jan. 1, 2008, intended to create a wholly electronic filing system for receipt of the Form 5500. [Proposed rule]

June 2006 - IRS Releases New FAQs relating to Form 8905 and Interim Amendments [FAQs]

On May 5, 2006, Issued with Rev. Proc. 2006-27, the IRS’s introduced an improved Corrections page on the Retirement Plans Community web site under the title of “Correcting Plan Errors” to include a variety of tools designed to highlight the changes in the new EPCRS procedure. The documents are tools used by Employee Plans Specialists during their review of retirement plans and are available to plan sponsors to use before submitting a determination letter application. [Corrections page]

On May 5, 2006, the IRS released Revenue Procedure 2006-27, which amends the rules for correcting plans under the Employee Plans Compliance Resolution System (EPCRS) and supersedes Rev. Proc. 2003-44, published in 2003. [Rev Proc 2006-27]

On May 5, 2006, the Treasury Department issued TD 9256 (correcting amendment) on Revised Regulations Concerning Disclosure of Relative Values of Optional Forms of Benefit. [Fed Reg 26688] [Fed Reg 26687]

On April 24, 2006, the IRS issued Notice 2006-44 which provides a sample plan amendment for sponsors, practitioners, and employers (plan sponsor) who want to provide for designated Roth Contributions in their 401(k) plans. [Notice 2006-44]

On April 21, 2006, the DOL issued final regulations on the termination of abandoned (orphan) individual retirement plans. [Fed Reg]

On April 21, 2006, the DOL issued Class Exemption 2006-06 for Administrators of Abandoned (Orphan) Retirement Plans. [PTE 2006-06]

On April 21, 2006, the DOL issued Field Assistance Bulleting (FAB) 2006-01 describing the duties and responsibilities for the allocation and distribution of mutual fund settlement proceeds to plans and plan participants. [FAB 2006-01]

On April 19, 2006, DOL published an Update of the Voluntary Fiduciary Correction Program, which simplified and expanded the original VFCP of 2002. [VFCP]

On April 19, 2006, the DOL issued an amendment to class exemption PTE 2002-51, which expands the relief under the exemption to additional transactions included in the final VFCP. [PTE 2002-51]

On March 24, 2006, the IRS issued Notice 2006-36 inviting public comment on items that should be included on its 2006-2007 Guidance Priority List. [Notice 2006-36]

On March 23, 2006, the IRS issued final regulations under Section 417(a)(3), the revised regulations concerning disclosure of relative values of optional forms of benefit. [Final Regs]

On February 3, 2006, the IRS proposed broader restrictions on contingent fees and greater transparency in disciplinary proceedings under new rules (REG-122380-02) on standards of tax practice under Circular 230. [REG-122380-02]

IRS FAQs Regarding Designated Roth Accounts based on the final regulations, Designated Roth Contributions to Cash or Deferred Arrangements Under Section 401(k) released January 3, 2006, and proposed regulations, Designated Roth Accounts released January 26, 2006." [FAQs]

On January 19, 2006, the IRS has released a revised list of required modifications (LRM) for 401(k) plans. The updated LRM reflects changes made by the Working Families Tax Relief Act of 2004 and the final Roth 401(k) regulations. [LRM]

On January 11, 2006, the DOL issued final rules requiring administrators of multiemployer pension plans to issue an annual notice of the funding status of the plans. [Final rule]

On December 30, 2005, the IRS issued final regulations on designated Roth contributions to a 401(k) plan. [Final regulations]

On December 19, 2005, the IRS issued a new user fee schedule for 2006. [User fees]

On December 12, 2005, the IRS issued the 2005 Cumulative List of changes in plan qualification requirements. [view list]

On December 8, 2005, in Notice 2005-94, the IRS suspended its Section 409A reporting withholding requirements for 2005 [Notice 2005-94]

On December 2, 2005, in Notice 2005-95, the IRS provided clarified plan amendment deadlines and transitional relief [Notice 2005-95]

On December 1, 2005, the PBGC issued its final rule that now aligns mortality tables with that of the practice of private annuity insurers [Final rule]

On December 1, 2005, IRS and Treasury Department updated mortality tables to determine current liability [Rule]

On November 30, 2005, the IRS issued Notice 2005-92, providing guidance relating to the plan distribution and plan loan provisions of the Katrina Emergency Tax Relief Act of 2005. [Notice 2005-92]

On November 23, 2005, the IRS issued Rev Proc 2005-76 extending the operational compliance deadline for anti-cutback amendments. [Rev Proc 2005-76]

On November 21, 2005, the IRS issued Notice 2005-87 clarifying the grandfather rules under IRC Sec. 415 proposed regulations. [Notice 2005-87]

On September 28, 2005, EBSA extended the deadline for filing Form 5500 and Form 5500-EZ, due to Hurricane Rita in Louisiana and Texas. Also, the filing deadline announced on Sept. 20 for the areas affected by Hurricane Katrina has also been extended to Feb. 28, 2006. [Press Release]

on September 27, 2005, the IRS corrected a notice of proposed rulemaking, published in the Federal Register on Friday, August 12, 2005 (70 FR 47155), correcting the regulations relating to the anti-cutback rules of IRC Section 411(d)(6). [Fed Reg]

On September 20, 2005, EBSA announced additional time, to January 3, 2006, for the filing Form 5500 and Form 5500-EZ annual report/returns for employee benefit plans affected by Hurricane Katrina that were otherwise due August 29, 2005, to January 3, 2006. [Press Release]

On September 15, 2005, the IRS issued Announcement 2005-70 that persons with 401(k) s and similar employer-sponsored retirement plans can make loans and hardship distributions to victims of Hurricane Katrina and members of their families.[Ann. 2005-70]

On September 2, 2005, in Notice 2005-60, the IRS, EBSA and the PBGC announced their agencies are providing relief in connection with certain employee benefit plans because of damage in the Gulf Coast area caused by Hurricane Katrina. Contributions that fall within the period August 29, 2005, to October 30, 2005, can be postponed to October 31, 2005 [Notice 2005-60]

On August 30, 2005, EBSA issued a proposed rule that would require the electronic filing of the Form 5500 Annual Report in 2008 for plan years beginning on or after Jan. 1, 2007. [Prop. Rule]

On August 30, 2005, the IRS issued proposed Listing of Required Modifications (LRM) #25B, on cross-tested profit sharing plans. [cross-tested plans]

On August 26, 2005, the IRS issued Rev. Proc 2005-66 that establishes cyclical remedial amendment periods under IRC §401(b) for individually designed and pre-approved qualified plans. [Rev. Proc. 2005-66]

On August 29, 2005, Treasury and the IRS issued final rules providing clarifications on the value of life insurance contracts that are distributed from qualified retirement plans and requiring that the contracts be valued at their fair market value. [TD 9223]

On August 25, 2005, the IRS issued proposed regulations provide guidance concerning which corporation is entitled to the deduction for applicable dividends under section 404(k). These regulations also clarify that a payment in redemption of employer securities held by an ESOP is not deductible. [Fed. Reg]

On August 11, 2005, the IRS issued Sections 411(d)(6) proposed (Reg-156518-04)and final regulations (TD 9219). The final regulations contained amendments to anti-cutback provisions under IRC Section 411(d)(6) and ERISA Section 204(g). The utilization test and the interaction of the permitted forfeiture rules are addressed in a proposed regulation. [Reg. 156518-04] [TD 9219]

On June 15, 2005, the PBGC issued its final rules on Benefits from Terminating Single-Employer Plans with July 2005 Valuation Dates. [final rules]

On June 1, 2005, the GAO issued Highlights of a GAO Forum, “Future of Defined Benefit System and the Pension Benefit Guaranty Corporation,” which convened a diverse group of knowledgeable individuals who have been influential in shaping the defined benefit pensions debate over the years. Participants included government officials, researchers, accounting experts, actuaries, plan sponsor and employee group representatives, and members of the investment community. [forum highlights]

On June 3, 2005, the GAO issued its report, “Government Actions Could Improve the Timeliness and Content of Form 5500 Pension Information,” which examines: (1) information reported and how it is used, (2) factors that affect the timeliness of information and (3) issues affecting the content of the form. [report]

On May 25, 2005, the IRS issued Regulations on Section 415 Limits on Benefits and Contributions for qualified plans. [415 regs]

On May 18, 2005, the IRS issued Notice 2005-42, extending the year-end deadline for flexible spending accounts by 2½ months. [Notice 2005-42]

On May 9, 2005, the IRS issued Announcement 2005-36 set the closing of its GUST determination letter program for DC pre-approved plans scheduled for June 15, 2005; Announcement 2005-37 stated that volume submitter practitioners can amend plans for adopting employers. [2005-36] [2005-37]

On April 8, 2005, in Rev. Proc. 2005-25, the IRS provides two new safe harbors for valuing insurance and other contracts distributed through a qualified plan. [Rev. Proc. 2005-25]

Defined Contribution Listing of Required Modifications and Information Package (LRM) for sponsors of master or prototype plans, the IRS provides samples of plan provisions that have been found to satisfy certain specific requirements of the Internal Revenue Code as amended through EGTRRA. [LRM - 107 pages]

On April 6, 2005, DOL issued proposed regulations revising the Voluntary Fiduciary Correction (VFC) program [DOL] [proposed regs]

On April 6, 2005, DOL issued corresponding changes to PTE 2002-51 regarding delinquent participant contributions [PTE 2002-51]

On March 14, 2005, PBGC issued a proposed rule on Valuation of Benefits, Mortality Assumptions which would amend its benefit valuation regulation by adopting more current mortality assumptions. [proposed rule]

On March 11, 2005, the SEC issued its final rule on mutual fund redemption fees [SEC final rule]

On March 10, 2005, the DOL issued three proposed regulations and a proposed class exemption for dealing with 'orphaned' retirement plans. [DOL issued] [proposed regulations] [class exemptions]

On March 9, 2005, the PBGC released final revised 4010 regulations. The new rules will affect plan sponsors that are subject to the reporting requirements of ERISA Section 4010. [regulations]

On March 2, 2005, the IRS issued proposed regulations for Roth 401(k) plans and 403(b) plans. [proposed regulations]

On February 7, 2005, EBSA launched a pension reform Web page for the Bush Administration's pension reform proposal to serve as a repository for all activities relating to pension reform. [site]

On Feb. 4, 2005, the DOL published new disclosure requirements for multiemployer pension plans. For calendar year plans, the first notice will be due in September 2006 or, if later, two months after the due date of the 2005 Form 5500. [proposal PDF: 133K]

On February 4, 2005, the IRS issued a response to ASPPA’s letter of December 22, 2004, requesting clarification of certain language in an October 22, 2004 IRS memorandum on the subject of certain plan designs and short service employees. [letter]

On January 27, 2005, the IRS issued its Proposed Revised Regulations Concerning Disclosure of Relative Values of Optional Forms of Benefit [more info]

On January 25, 2005, the IRS issued final regulations on the Elimination of Optional Forms of Distribution in DC Plans [Section 411(d)(6)] [more info]

On January 10, 2005, the Bush Administration introduced their Single-Employer Pension Reform Proposal [more info]

On January 10, 2005, U.S. Secretary of Labor Elaine L. Chao provided comments to the National Press Club on the President's Plan to Reform Private Pensions [more info]

On January 10, 2005, the DOL issued a Fact Sheet on the Administration’s Plan for Strengthening Retirement Security [more info]

On January 10, 2005, the IRS issued Notice 2005-05 on Guidance on Automatic Rollover Rules for Qualified Plans [more info]

On January 5, 2005, the IRS issued Notice 2005-01 on General and Transitional Guidance relating to New IRC Section 409A [more info]

IRS Employee Plan Team Audit (EPTA) Program - Top Ten Audits Issues [more info]

On December 29, 2004, the IRS issued its Final Regulations on 401(k) and 401(m) plans [more info]

On December 28, 2004, the PBGC issued its Proposed Regulations on Electronic Filing of Section 4010 Information [more info]

On December 17, 2004, Treasury issued New Regulations Under Section 409(p) [more info]

On December 17, 2004, EBSA issued its Guidance on the Duties of a Directed Trustee [more info]

On December 14, 2004, the IRS issued Notice 2004-84 on the Cumulative List of Changes in Qualification Requirements [more info]

On November 10, 2004, the ERISA Advisory Council issued its report on Fees and Related Disclosures to Participants [more info]

On November 10, 2004, the ERISA Advisory Council issued its report on Plans Fees and Reporting on Form 5500 [more info]

On November 10, 2004, the ERISA Advisory Council issued its report on Health and Welfare 5500 Requirements [more info]

On November 10, 2004, The Treasury Department and IRS issued proposed regulations permitting private pension plans to begin pension payments to employees as part of a phased retirement program. [More info]

On October 22, 2004, the IRS Director of Employee Plans, issued a directive to EP staff regarding certain schemes which use employees with short periods of service to insure that most, or all, of the benefits paid under a retirement plan go to the employer’s highly compensated employees (HCEs). [More info]

On August 20, 2003, the Pension Benefit Guaranty Corporation stated that it is waiving certain penalties and extending certain deadlines in response to the power blackout that occurred on August 14-16, 2003, in parts of the Northeast and Midwest. [More info]

The IRS announced tax relief on August 15, 2003 for those hit by the power blackout in the Northeastern United States. The IRS will consider as timely any tax returns or payments due from Friday, Aug. 15 through Friday, Aug. 22, if they are completed by Aug. 22, 2003. However, the law does not allow the agency to abate interest on any overdue taxes during this period. [notice] While the IRS cannot extend the time for making employment and excise tax deposits, it will waive penalties on such deposits due during this period for affected taxpayers due to reasonable cause if the deposits are made by Aug. 22, 2003. To qualify for this relief, affected taxpayers should put "NORTHEAST BLACKOUT" in red ink at the top of the return relying on this relief.

Revenue Procedure 2002-73 extends the GUST remedial amendment period for Prototype and Volume Submitter plans to the later of September 30, 2003, or the end of the twelve month period after the date on which the IRS issued a GUST opinion or advisory letter for the pre-approved plan.

On April 17, 2002, Treasury issued final regulations (“Final Regs”) on required minimum distributions (“RMDs”) under Code Section 401(a)(9). These regulations finalize many of the rules proposed in 2001 (“2001 Regs”), which simplified the prior proposed regulations issued in 1987 (“1987 Regs”).

The Final Regs contain several important changes, including new tables to determine the amount of the RMDs. The Final Regs are effective for calendar years beginning on or after January 1, 2003. For 2002, RMDs may be calculated using the 1987 Regs, the 2001 Regs, or the Final Regs.

On June 28, 2001, Treasury and IRS made public final regulations addressing new comparability plans - The regulations retain the 5 percent minimum contribution gateway for defined contribution plans. In response to concerns raised by ASPPA, the final regulations contain a 7 1/2 percent minimum allocation rate cap in the case of combination defined benefit/defined contribution plans. The regulations are effective beginning with the 2002 plan year. Summary of Regulations & Text of Regulations (Note: this file is in pdf format, and requires Acrobat Reader® to open. Don't have it? Get the free plugin here!).

On January 5, 2001, ASPPA filed with the Internal Revenue Service detailed comments on proposed regulations governing new comparability plans. In these comments ASPPA argues that the proposed rules applicable to combination defined contribution/defined benefit plans will likely result in excessive contribution requirements leading small businesses to abandon their defined contribution plans to the detriment of younger workers. The comments also address a number of technical issues raised by the proposed regulations.

IRS Issues Guidance on Plan Amendments for EGTRRA - Full text of IRS Notice 2001-42

IRS Simplifies Determination Letter Application Procedure - Full text of IRS Announcement 2001-77

IRS Simplifies Determination Letter Application Procedure - Full text of IRS Announcement 2001-77

IRS Issues Guidance on Plan Amendments for EGTRRA - Full text of IRS Notice 2001-42

DOL Finalizes Small Plan Audit Regulations outlining the rules for exempting small business retirement plans from a full scope audit. Read the Regulations, released on October 19, 2000. (Note: this file is in pdf format, and requires Acrobat Reader® to open. Don't have it? Get the free plugin here!) Note that the rules are effective for plan years beginning after April 17, 2001. Thus, for calendar year plans the rules are not effective until 2002.

On October 5, 2000, Treasury issued new comparability regulations regarding nondiscrimination requirements for certain defined contribution retirement plans. Read the regulations.

On May 18, 2000, ASPPA issued a press release stating that the ASPPA survey confirms "New Comparability" expands small business retirement plan coverage. Read the release.

IRS officials informally announced that the deadline for updating qualified retirement plans for the GUST law changes will be extended to the last day of the first plan year beginning after December 31, 2000 (i.e., the last day of the first plan year beginning in 2001). Read about the extension and its ensuing confusion in ASPPA ASAP 00-19.

Text of Revenue Ruling 2000-27.

The Department of Labor published a notice adopting the Voluntary Fiduciary Correction Program. This program will help plan officials correct certain employee benefit plan violations. Read the notice. Note: this file is in pdf format, and requires Acrobat Reader® to open. Don't have it? Get the free plugin here!

The Internal Revenue Service issued Revenue Ruling 2000-8 regarding 401(k) plans and the use of "automatic" or "negative" elections for current employees as well as new employees. Read the Ruling.

IRS Issues Revenue Procedure 2000-20 Prototype Program to Open in April The IRS has issued Revenue Procedure 2000-20, which sets forth a new prototype program for GUST. Read the full procedure. Note: this file is in pdf format, and requires Acrobat Reader® to open. Don't have it? Get the free plugin here!

The IRS published a notice providing additional guidance regarding 401(k) plans that are intended to satisfy the 401(k) safe harbors. Read the notice.

The PWBA published a proposed rule that would amend the regulations governing the circumstances under which small pension plans are exempt from the requirements to engage an independent qualified public accountant. These regulations can be found in the federal register. Read ASPPA's comment letter. ASPPA ASAP subscribers - check out ASPPA ASAP 99-30.

IRS Notice 99-44 was just released providing guidance, in a question- and-answer format, on the repeal of the section 415(e) combined limitation on defined benefit and defined contribution plans and on the amendment to the section 415(c)(3) definition of compensation. Read the notice and ASPPA's response.

On July 31, 2000, the IRS released proposed regulations regarding loans from a qualified employer plan to a plan participant. Read the proposed regulations.

BNA Article on Delayed Effective Date for New Comparability Plans On March 21, 2000, Treasury confirmed to a BNA reporter that a delayed effective date will apply to any changes that are made to new comparability regulations. Read the BNA article. On March 20, 2000, ASPPA issued ASAP 2000-12, updating negotiations on new comparability plans. This has resulted from negotiations with Treasury as a result of the issuance of IRS Notice 2000-14 on February 24 where Treasury announced a review of New Comparability plans which concerned many ASPPA members .Go to the New Comparability page to view previous developments on this issue, including the Center on Budget and Policy Priorities paper, the ASPPA ASAP released on the notice, and the white paper prepared by ASPPA Executive Director Brian Graff addressing this issue.

Secretary of Labor Alexis M. Herman released new 401(k) fee disclosure tools to help employers, especially small employers, understand the investment and administrative fees and expenses which are charged to their 401(k) plans. The newly-released materials include: a news release, a worksheet entitled "401(k) Plan Fee Disclosure Form," and a pamphlet, "A Look at 401(k) Fees for Employers." Copies of these materials are available on the DOL Pension and Welfare Benefits Administration (PWBA) website.

IRS announced a one-year extension of the remedial amendment period for pension plans. Read the notice.

The U.S. Department of Labor recently sent a letter in response to ASPPA's concerns about potential DOL regulations regarding small plan reporting requirements. Read the DOL's response and check out the letter sent by ASPPA.

Newest information on Safe Harbor 401(k) Guidelines (IRS 98-52) and 1999 Limitations Adjustments for Qualified Retirement Plans (IRS 98-63)