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Defined benefit plan

IRS will withdraw parts of recently-issued proposed pension plan nondiscrimination regs

IRS will withdraw parts of recently-issued proposed pension plan nondiscrimination regs

Ann. 2016-16, 2016-18 IRB IRS has announced that it will withdraw certain provisions contained in proposed regs issued this past January that would have changed nondiscrimination requirements applicable to qualified retirement plans. Background — before the proposed regs. In general, under Code Sec. 401(a)(4), a plan is a qualified plan only if the contributions or […]

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Tax Court -purported welfare benefit plans were nonqualified deferred compensation arrangements

Tax Court -purported welfare benefit plans were nonqualified deferred compensation arrangements

Machacek, Jr., TC Memo 2016-55 In consolidated cases, the Tax Court has concluded that purported welfare benefit plans in which the taxpayers’ companies participated were nonqualified deferred compensation arrangements, and the taxpayers had to include in their gross income any vested accrued benefits in the plan under Code Sec. 402(b)(4), because the plan failed to […]

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Proposed Regs set ordering rule on limitation on multiemployer plan benefit suspensions

Proposed Regs set ordering rule on limitation on multiemployer plan benefit suspensions

Preamble to Prop Reg 02/09/2016; Prop Reg § 1.432(e)(9)-1 Proposed regs — Additional Limitation on Suspension of Benefits Applicable to Certain Pension Plans Under the Multiemployer Pension Reform Act of 2014 IRS has issued proposed regs that would provide guidance on the limitation that governs the application of a suspension of benefits under a multiemployer […]

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IRS issues 2015 cumulative list of changes in plan qualification requirements

IRS issues 2015 cumulative list of changes in plan qualification requirements

Notice 2015-84, 2015-52 IRB IRS has issued the 2015 Cumulative List of Changes in Plan Qualification Requirements (the “2015 cumulative list”) to be used by plan sponsors and practitioners submitting determination, opinion, or advisory letter applications for plans during the period beginning Feb. 1, 2016 and ending Jan. 31, 2017. These plans will be primarily […]

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Final Regs explain minimum required contributions for defined benefit pension plans

Final Regs explain minimum required contributions for defined benefit pension plans

T.D. 9732, 09/08/2015; Reg. § 1.430(a)-1, Reg. § 1.430(f)-1, Reg. § 1.430(h)(2)-1 , Reg. § 1.430(j)-1, Reg. § 1.436-1, Reg. § 54.4971(c)-1 IRS has issued final regs under Code Sec. 430 that provide guidance on the determination of minimum required contributions for single-employer defined benefit pension plans, as well as on the excise tax for […]

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Temporary Regs Outline Participant Vote Requirement For Suspension Of Plan Benefits

Temporary Regs Outline Participant Vote Requirement For Suspension Of Plan Benefits

T.D. 9735, 08/31/2015, Prop Reg § 1.432(e)(9)-1T, Preamble to Prop Reg 08/31/2015, Prop Reg § 1.432(e)(9)-1 Under Code Sec. 432(e)(9), as amended by the Multiemployer Pension Reform Act of 2014, multiemployer defined benefit pension plans in critical and declining status are allowed to reduce the plan benefits payable to participants and beneficiaries (a “suspension of […]

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Regs will ban replacing defined benefit plan lifetime income with lump sum payment

Regs will ban replacing defined benefit plan lifetime income with lump sum payment

Notice 2015-49, 2015-30 IRB IRS has announced that it will amend the required minimum distribution (RMD) regs to provide that qualified defined benefit plans generally are not allowed to replace any joint and survivor, single life, or other annuity that is currently being paid with a lump sum payment or other accelerated form of distribution. […]

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Employee plan determination letter program to be revised; no off-cycle letter applications

Employee plan determination letter program to be revised; no off-cycle letter applications

Ann. 2015-19, 2015-32 IRB IRS has announced that, effective Jan. 1, 2017, the staggered 5-year determination letter remedial amendment cycles for individually designed plans will be eliminated, and the scope of the determination letter program for individually designed plans will be limited to initial plan qualification and qualification upon plan termination. A transition rule will […]

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Favorable treatment for retiree health reimbursement plan funded by unused sick leave

Favorable treatment for retiree health reimbursement plan funded by unused sick leave

PLR 201528004 In a private letter ruling (PLR), IRS has held that contributions by an employer to a plan, under which retired employees could elect to have a health reimbursement arrangement (HRA) funded by their unused sick leave at their retirement date, generally did not result in taxable income or FICA or FUTA wages for […]

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IRS OKs annuity-generating rollover from employer defined contribution plan to its pension plan

IRS OKs annuity-generating rollover from employer defined contribution plan to its pension plan

PLR 201527041 In a private letter ruling (PLR), IRS has concluded that retirees may elect to make a plan-to-plan transfer of their account balance in their employer’s defined contribution plan to a defined benefit (pension) plan maintained by the same employer in order to begin receiving an annuity benefit from the transferee plan. The PLR, […]

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IRS extends temporary nondiscrimination relief for closed defined benefit plans

IRS extends temporary nondiscrimination relief for closed defined benefit plans

Notice 2015-28, 2915-28 IRB   In a Notice, IRS has extended for a year previously provided temporary relief with respect to the rules that require that qualified plans not discriminate in favor of highly compensated employees (HCEs). The relief applies for certain “closed” defined benefit pension plans (i.e., defined benefit plans that provide ongoing accruals […]

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IRS oks freeze of taxpayer’s “floor-offset” pension/profit sharing plan arrangement

IRS oks freeze of taxpayer’s “floor-offset” pension/profit sharing plan arrangement

PLR 201501025   In a private letter ruling, IRS has ruled that an employer’s freezing of accruals and contributions to its pension and profit sharing plans that were established under a “floor-offset” arrangement violated neither a revenue ruling on such arrangements nor Code Sec. 411(d)(6)’s requirement that plan amendments not retroactively reduce benefits. Facts. The taxpayer […]

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IRS Issues 2014 Cumulative List Of Changes In Plan Qualification Requirements

IRS Issues 2014 Cumulative List Of Changes In Plan Qualification Requirements

Notice 2014-77, 2014-52 IRB IRS has issued the 2014 Cumulative List of Changes in Plan Qualification Requirements (the “2014 cumulative list”) to be used by plan sponsors and practitioners submitting determination, opinion, or advisory letter applications for plans during the period beginning Feb. 1, 2015 and ending Jan. 31, 2016. These plans will be primarily […]

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IRS Extends Deadline To Submit Letter Applications For Certain Defined Benefit Plans

IRS Extends Deadline To Submit Letter Applications For Certain Defined Benefit Plans

Ann. 2014-41, 2014-52 IRB IRS has announced that the deadline to submit on-cycle applications for opinion and advisory letters for pre-approved defined benefit plans, for the plans’ second 6-year remedial amendment cycle, has been extended from Feb. 2, 2015, to June 30, 2015. This extension applies to defined benefit mass submitter lead and specimen plans, […]

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Temporary discrimination relief provided to closed defined benefit plans

Temporary discrimination relief provided to closed defined benefit plans

In a Notice, Notice 2014-5, 2014-2 IRB, IRS has granted temporary relief to certain “closed” defined benefit pension plans with respect to the rules that require that qualified plans not discriminate in favor of highly compensated employees (HCEs). The Notice also requests comments on a number of permanent discrimination rule changes that IRS is considering. […]

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Meet Paul Raymond

Meet Paul Raymond

Mr. Raymond is a sought after speaker in tax controversy law by many attorney, accountant, and business groups and at the request of the Internal Revenue Service, has presented programs at the IRS Nationwide Tax Forum, attended by tax professionals throughout the United States.

Additionally, he continues to be an active member in the Section of Taxation, American Bar Association, where he was the Past Chair of the Employment Taxes Committee.

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