IRS Notice 2008-7 - Extension of Transitional Relief for Diversification Requirements for Certain Defined Contribution Plans

Part III - Administrative, Procedural and Miscellaneous

Extension of Transitional Relief for Diversification Requirements for Certain Defined Contribution Plans

IRS Notice 2008-7 - Extension of Transitional Relief for Diversification Requirements for Certain Defined Contribution Plans

The IRS announced the following:

"Notice 2008-07 provides relief for certain defined contribution plans holding publicly traded employer securities under Notice 2006-107, 2006-51 I.R.B. 1114. The transitional relief provided for the period prior to January 1, 2008, in paragraph 4 of Part III.D of Notice 2006-107 will continue to apply after 2007 until new regulations go into effect.

Notice 2008-7 will be published in Internal Revenue Bulletin 2008-3, dated January 22, 2008."

Extension of Transitional Relief

• "It is expected that these regulations, when finalized, will not be effective before plan years beginning on or after January 1, 2009."
  
• "Except as otherwise provided in the proposed or final regulations, plans must continue to apply Notice 2006-107 until the regulations go into effect."
  
• "For this purpose, the transitional relief provided for the period prior to January 1, 2008, in paragraph 4 of Part III.D of Notice 2006-107 will continue to apply after 2007 until the regulations go into effect."

Related Links:

• IRS Notice 2008-7, 2008-03 I.R.B. - Extension of Transitional Relief for Diversification Requirements for Certain Defined Contribution Plans [HTML]
• IRS Notice 2007-94, 2008-03 I.R.B. - Extension of Transitional Relief for Diversification Requirements for Certain Defined Contribution Plans [PDF]
• IRS Notice 2006-107, 2006-51 I.R.B. 1114 - Diversification Requirements for Qualified Defined Contribution Plans Holding Publicly Traded Employer Securities

• IRS extends transition relief from diversification requirements for grandfathered investments past 2007