IRS Revenue Ruling 2008-07 - Minimum Vesting Standards

Part I

Section 411. – Minimum Vesting Standards

26 CFR 1.411(b)-1: Accrued benefit requirements.

(Also, § 7805; § 301.7805-1.)

IRS Revenue Ruling 2008-07 - Minimum Vesting Standards

The Treasury Department and the Internal Revenue Service (IRS) issued this revenue ruling to address "the application of the accrual rules for pension plans under section 411(b)(1) of the Internal Revenue Code (commonly referred to as “backloading” rules)."

Does the defined benefit plan described below that was converted from a traditional benefit formula to a lump sum-based benefit formula satisfy the accrual rules of § 411(b)(1)(A), (B), and (C) of the Internal Revenue Code for the 2002 plan year?

Accrued benefits; cash balance defined benefit pension plans; section 411 of the Code. This ruling, which pertains to a traditional defined benefit pension plan that is amended in 2001 for the 2002 plan year into a cash balance defined benefit pension plan containing an accrued benefit formula that is a lump sum-based benefit, describes the application of the accrual rules of sections 411(b)(1)(A), (B), and (C) of the Code to the fact pattern.

Related Links:

• IRS Revenue Ruling 2008-07, 2008-7 I.R.B. 419 - Minimum Vesting Standards [PDF]
• IRS Revenue Ruling 2008-07, 2008-7 I.R.B. 419 - Minimum Vesting Standards [HTML]

• Pension Rights Center Letter on Treasury Ruling that Threatens Pensions of Thousands
• IRS Publishes Guidance on Accrual Rules in Defined Benefit Plan Conversions
• IRS Provides Long-Awaited Guidance on Backloading Rules
• IRS Guidance on Applying Backloading Rules to “Greater Of” Formulas
• IRS Validates Most 'Greater-Of' Pension Formulas
• Treasury Validates Some Pension Rollbacks
• Feds Offer Cash Balance Conversion Relief
• Converted Pension Plan Satisfied "Backloading" Rules (TDNR HP-796; Rev. Rul. 2008-7)
• IRS Discusses 3 Accrual Rules of 411(b)(1) in Rev. Rev. 2008-7