Retirement Plans Still Figure in IRS Priority Guidance Plan

Retirement plans and benefits still are among the matters the IRS plans to address in upcoming guidance. They still are included in the IRS 2022-2023 priority guidance plan; the IRS issued a fourth quarter update to the plan on Aug. 21. 

The IRS had released the initial plan on Nov. 4, 2022, setting forth guidance priorities for the 12-month period from July 1, 2022, through June 30, 2023 (the plan year). It released an update to the plan in February, and another in May. 

Since the last update, the IRS has issued guidance on mortality tables used to determine present value under Internal Revenue Code (IRC) Section 430 for single-employer defined benefit plans.

The To-Do List 

The IRS says in the updated list that the following items that were on the initial priority guidance list remain on the “to do” list: 

• Regulations under IRC Section 72(t) relating to the 10% additional tax on early distributions.
• Final regulations on the application of the normal retirement age regulations under IRC Section 401(a) to governmental plans. The IRS had issued proposed regulations in January 2016.
• Regulations relating to SECURE Act modifications to certain rules governing 401(k) plans.
• Guidance on student loan payments and qualified retirement plans and 403(b) plans.
• Regulations and related guidance on closed defined benefit plans and related matters. The IRS had issued proposed regulations on Jan. 29, 2016.
• Guidance on missing participants, including guidance on uncashed checks. 
• Final regulations and related guidance on the exception to the unified plan rule for 413(e) multiple employer plans. Proposed regulations were published on March 28, 2022. 
• Regulations on the definition of governmental plan under IRC Section 414(d). An ANPRM was published on Nov. 8, 2011. 
• Regulations on the definition of church plan under IRC Section 414(e). 
• Final regulations under IRC Section 417(e) that update the minimum present value requirements for DB plans. The IRS had issued proposed regulations on Nov. 25, 2016. 
• Guidance updating electronic filing requirements for employee benefit plans to reflect changes made by the Taxpayer First Act.
• Final regulations under IRC Section 3405 regarding distributions made to payees, including military and diplomatic payees, with an address outside the United States. Proposed regulations were published on May 31, 2019. 
• Regulations relating to the reporting requirements under IRC Section 6057. Proposed regulations were published on June 21, 2012. 

Mission Accomplished

The IRS says in the update that the following items that were on the initial priority guidance list have been done: 

Mortality Tables. The IRS issued proposed regulations on mortality tables used to determine present value under IRC Section 430 for single-employer defined benefit plans. on April 28, 2022. The IRS issued guidance in REG-124123-22 on June 23, 2023. 

TEGE Programs. The IRS notes that it has published guidance relating to certain IRS, Tax Exempt and Government Entities, Employee Plans programs, including the Pre-approved Plan Program, the Determination Letter Program, and the Employee Plans Compliance Resolution System (EPCRS): 

• Notice 2022-33, released on Aug. 3, 2022 and published on Aug. 22, 2022 in Internal Revenue Bulletin 2022-34.  
• Notice 2022-45, released on Sept. 26, 2022 and published on Oct. 17, 2022 in Internal Revenue Bulletin 2022-42.   
• Revenue Procedure 2022-40, released on Nov. 7, 2022 and published on Nov. 21, 2022 in Internal Revenue Bulletin 2022-47.  
• Announcement 2023-06, released on Feb. 8, 2023 and published on Feb. 27, 2023 in Internal Revenue Bulletin 2023-09.

Providing Notice. The IRS reports that it issued REG-114666-22 on Dec. 29, 2022, which updated electronic delivery rules and other guidance for providing applicable notices and making participant elections. 

IRC Section 401(a)(9). The IRS on Nov. 7, 2022 issued Notice 2022-53, which contains final regulations relating to SECURE Act modifications to IRC Section 401(a)(9). It later issued Notice 2023-23 on March 7, 2023, which was published in Internal Revenue Bulletin 2023-13 on March 27, 2023. 

Tax Treatment of a Nonfungible Token. The IRS issued regulations and related guidance under IRC Sections 219, 408, 408A, and 4973, and related guidance under

IRC Section 408(m), in Notice 2023-27 on March 21, 2023. It was published in the Internal Revenue Bulletin of April 10, 2023.  

Timing of the Use or Allocation of Forfeitures in Qualified Retirement Plans. The IRS published guidance in REG-122286-18, which appeared in the Federal Register of Feb. 27, 2023. 

Relief under the American Rescue Plan Act of 2021. The IRS issued guidance regarding changes to IRC Sections 430, 431, and 432 and relief under the American

Rescue Plan Act of 2021. It describes the determination of deemed critical status regarding the merger of a multiemployer defined benefit plan that receives special financial assistance from the Pension Benefit Guaranty Corporation into a multiemployer DB plan that does not receive it. The guidance was contained in Revenue Ruling 2022-13, which the IRS issued on July 7, 2022, and published in Internal Revenue Bulletin 2022-30 on July 25, 2022.

Finding Out More 

Additional copies of the 2022–2023 Priority Guidance Plan can be obtained from the IRS website at http://www.irs.gov/uac/Priority-Guidance-Plan