This notice contains updates for the corporate bond weighted average interest rate for plan years beginning in August 2011; the 24-month average segment rates; the funding transitional segment rates applicable for August 2011; and the minimum present value transitional rates for July 2011.
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Showing posts with label IRS Notice. Show all posts
Showing posts with label IRS Notice. Show all posts
Monday, August 22, 2011
IRS Notice 2011-67 - Weighted average interest rate update; corporate bond indices; 30-year Treasury securities; segment rates.
Monday, June 27, 2011
IRS Notice 2011-49 - Weighted average interest rate update; corporate bond indices; 30-year Treasury securities; segment rates.
This notice contains updates for the corporate bond weighted average interest rate for plan years beginning in June 2011; the 24-month average segment rates; the funding transitional segment rates applicable for June 2011; and the minimum present value transitional rates for May 2011.
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Monday, May 9, 2011
IRS Notice 2011-33 - Weighted average interest rate update; corporate bond indices; 30-year Treasury securities; segment rates.
This notice contains updates for the corporate bond weighted average interest rate for plan years beginning in April 2011; the 24-month average segment rates; the funding transitional segment rates applicable for April 2011; and the minimum present value transitional rates for March 2011.
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Monday, February 28, 2011
IRS Notice 2011-19 - Definition of Readily Tradable On An Established Securities Market.
This notice provides guidance regarding when securities of the employer are readily tradable on an established securities market or readily tradable on an established market for purposes of certain provisions of the Internal Revenue Code relating to employer securities held by certain qualified retirement plans. Related Links: Part III –Administrative, Procedural and Miscellaneous Definition of Readily Tradable On An Established Securities Market Notice 2011-19 Purpose This notice provides guidance regarding when securities of the employer are readily tradable on an established securities market or readily tradable on an established market for purposes of certain provisions of the Internal Revenue Code relating to employer securities held by certain qualified retirement plans. Background Section 4975(e)(7) defines an employee stock ownership plan (ESOP) as a defined contribution plan (1) which is a stock bonus plan which is qualified under § 401(a), or a stock bonus and a money purchase plan both of which are qualified under § 401(a), and which are designed to invest primarily in qualifying employer securities as defined in §4975(e)(8), and (2) which is otherwise defined in regulations prescribed by the Secretary. Section 4975(e)(7) also states that an employee stock ownership plan must satisfy certain requirements in §409, including the requirements of § 409(h). In addition, §401(a)(23) generally provides that a stock bonus plan is not a qualified plan under §401(a) unless the plan meets certain requirements, including the requirements of §409(h). Section 401(a)(22) generally provides that a defined contribution plan (other than a profit sharing plan) must meet the requirements of §409(e) (which relates to passthrough of voting rights) if it is established by an employer whose stock is not readily tradable on an established market, and after acquiring securities of the employer, more than 10 percent of the total assets of the plan are securities of the employer. Section 409(h) provides generally that a plan satisfies the requirements of §409(h) if the plan offers a participant who is entitled to a distribution the right to demand payment in the form of employer securities and, if the employer securities are not readily tradable on an established market, the participant must also have the right to require that the employer repurchase the employer securities under a fair valuation formula (put option). Section 401(a)(35)(A) provides that a trust which is part of an applicable defined contribution plan is not a qualified trust under §401(a) unless the plan satisfies certain diversification requirements set forth in §401(a)(35)(B), (C), and (D). Subject to certain exceptions, an applicable defined contribution plan under §401(a)(35) is a defined contribution plan that holds any publicly traded employer securities. A publicly traded employer security is defined in §401(a)(35)(G)(v) as an employer security under section 407(d)(1) of ERISA which is readily tradable on an established securities market. Section 401(a)(28) provides that an ESOP, and a tax credit employee stock ownership plan under §409(a), is not a qualified plan under §401(a) unless the plan meets the requirements of §401(a)(28)(B) and (C). Section 401(a)(28)(B) imposes certain diversification requirements with respect to certain participants. Section 401(a)(28)(B) was amended by the Pension Protection Act of 2006, Pub. L. 109-280, 120 Stat. 780 (PPA '06) to not apply to a plan to which §401(a)(35) applies. For employer securities that are not readily tradable on an established securities market, §401(a)(28)(C) requires all valuations with respect to activities carried on by the plan to be made by an independent appraiser that meets requirements similar to the requirements of regulations under §170(a)(1). Section 404(k) generally permits an income tax deduction for the amount of any applicable dividend paid in cash by a C corporation with respect to applicable employer securities. For this purpose, applicable employer securities are generally defined to mean employer securities as defined in §409(l) held by an ESOP. Section 4975(e)(8), as amended by the Technical Corrections Act of 1979, P.L. 96-22 (1980), provides that qualifying employer securities must meet the definition set forth in §409(l). Section 409(l)(1) defines employer securities as common stock issued by the employer (or by a corporation that is a member of the same controlled group) which is readily tradable on an established securities market and provides special rules for an employer that has no class of stock which is readily tradable on an established securities market. In the absence of any guidance of general applicability, some plans may have applied the definition of "publicly traded" at §54.4975-7(b)(1)(iv) of the Excise Tax Regulations (issued before enactment of the Technical Corrections Act of 1979) to determine whether employer securities are readily tradable on an established securities market within the meaning of §409(l)(1). Section 1042 generally provides that, if the taxpayer or executor so elects, gain on the sale of qualified employer securities which would be recognized as long-term capital gain is recognized only to the extent the gain exceeds the cost of qualified replacement property acquired within the replacement period. This treatment applies only if the sale is to an ESOP or eligible worker-owned cooperative that holds at least 30 percent of the corporation's stock after the sale, and various other conditions in §1042(b) are satisfied. In addition, under §1042(c), the only securities eligible for this treatment are employer securities defined under §409(l) and issued by a domestic C corporation that has no stock outstanding that is readily tradable on an established securities market. Final regulations under §401(a)(35) were issued on May 18, 2010 (75 FR 27927). Under §1.401(a)(35)-1(f)(5), a security is readily tradable on an established securities market if the security is traded on a national securities exchange that is registered under section 6 of the Securities Exchange Act of 1934 (15 U.S.C. 78f). The regulations also treat a security as readily tradable on an established securities market if the security is traded on a foreign national securities exchange that is officially recognized, sanctioned, or supervised by a governmental authority and where the security is deemed by the Securities and Exchange Commission (SEC) as having a ready market under SEC Rule 15c3-1 (17 CFR 240.15c3-1). Under the current SEC rules, a security that is included on the FTSE Group (FTSE) All-World Index is deemed to have a ready market. Section 1.401(a)(35)-1 is effective for plan years beginning on or after January 1, 2011. Readily tradable on an established securities market or established market Under this notice, the terms readily tradable on an established securities market and readily tradable on an established market, with respect to employer securities, each mean employer securities that are readily tradable on an established securities market within the meaning of §1.401(a)(35)-1(f)(5) for purposes of the following provisions: (1) §401(a)(22); (2) §401(a)(28)(C); (3) §409(h)(1)(B); (4) §409(l); and (5) § 1042(c)(1)(A). Effective Date This notice is effective for plan years beginning on or after January 1, 2012. However, this notice is not effective until plan years beginning on or after January 1, 2013 for any plan that is sponsored by an employer with respect to which, on March 14, 2011, neither the employer nor any member of its controlled group (within the meaning of § 409(l)) has any common stock that is readily tradable on an established securities market within the meaning of §1.401(a)(35)-(1)(f)(5)(A) (relating to securities that are traded on a national securities exchange that is registered under section 6 of the Securities Exchange Act of 1934), but the employer or a member of its controlled group has common stock that is readily tradable on an established securities market within the meaning of §1.401(a)(35)-(1)(f)(5)(B) (relating to securities that are traded on a foreign national securities exchange that is officially recognized, sanctioned, or supervised by a governmental authority Drafting Information: The principal author of this notice is Robert Gertner of the Employee Plans, Tax Exempt and Government Entities Division. For further information regarding this notice, please contact the Employee Plans taxpayer assistance answering service at 1-877-829-5500 (a toll-free number) or e-mail Mr. Gertner at RetirementPlanQuestions@irs.gov.
and is deemed by the SEC as having a "ready market" under SEC Rule 15c3-1, within the meaning of §1.401(a)(35)-(1)(f)(5)(B)). Taxpayers (including any employer sponsoring a plan described in the preceding sentence) can rely on this notice for periods after March 14, 2011.
IRS Notice 2011-13 - Weighted average interest rate update; corporate bond indices; 30-year Treasury securities; segment rates.
This notice contains updates for the corporate bond weighted average interest rate for plan years beginning in February 2011; the 24-month average segment rates; the funding transitional segment rates applicable for February 2011; and the minimum present value transitional rates for January 2011.
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Monday, January 31, 2011
Notice 2011-7 - Weighted average interest rate update; corporate bond indices; 30-year Treasury securities; segment rates
This notice contains updates for the corporate bond weighted average interest rate for plan years beginning in January 2011; the 24-month average segment rates; the funding transitional segment rates applicable for January 2011; and the minimum present value transitional rates for December 2010.
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Monday, January 10, 2011
Notice 2011-3 - Funding Relief for Single-Employer Pension Plans under PRA 2010
Special rules relating to funding relief for single-employer pension plans under PRA 2010. This notice provides guidance on the special rules relating to funding relief for single-employer defined benefit pension plans (including multiple employer defined benefit pension plans) under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010 (PRA 2010).
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Notice 2011-2 - Guidance on the Application of Section 162(m)(6)
This notice provides guidance on the application of section 162(m)(6) of the Code. Section 162(m)(6) limits the allowable deduction for remuneration for services provided by individuals to certain health insurance providers. Section 162(m)(6) was enacted as part of the Patient Protection and Affordable Care Act (2010).
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Notice 2011-1 - Affordable Care Act Nondiscrimination Provisions Applicable to Insured Group Health Plans
This notice addresses the timing of the application of the Affordable Care Act provisions prohibiting insured group health plans from discriminating in favor of highly compensated individuals. It states that the Treasury Department and the IRS, as well as the Departments of Labor and Health and Human Services, have determined that compliance with these requirements should not be required (and thus, any sanctions for failure to comply do not apply) until after regulations or other administrative guidance of general applicability has been issued. The notice includes a request for public comments.
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Monday, December 27, 2010
Notice 2010-93 - Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates
Weighted average interest rate update; corporate bond indices; 30-year Treasury securities; segment rates. This notice contains updates for the corporate bond weighted average interest rate for plan years beginning in December 2010; the 24-month average segment rates; the funding transitional segment rates applicable for December 2010; and the minimum present value transitional rates for November 2010.
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Notice 2010-90 - 2010 Cumulative List of Changes in Plan Qualification Requirements
This notice contains the 2010 Cumulative List of Changes in Plan Qualification Requirements (2010 Cumulative List) described in section 4 of Rev. Proc. 2007-44, 2007-2 C.B. 54. The 2010 Cumulative List is to be used by plan sponsors and practitioners submitting determination, opinion, or advisory letter applications for plans during the period beginning February 1, 2011, and ending January 31, 2012.
Related Links:Monday, December 20, 2010
IRS Notice 2010-83 - Funding Relief For Multiemployer Defined Benefit Plans Under PRA 2010
This notice provides additional relief for nonqualified deferred compensation plans covered under section 409A. This notice also expands the types of plans eligible for relief under Notice 2010-6, provides an additional method of correction and transition relief under Notice 2010-6 for certain plan document failures relating to payments at separation from service, and modifies the correction reporting requirements in Notice 2008-113 and Notice 2010-6. Notices 2008-113 and 2010-6 modified.
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IRS Notice 2010-80 - Modification to the Relief and Guidance on Corrections of Certain Failures of a Nonqualified Deferred Compensation Plan to Comply with § 409A(a)
This notice provides additional relief for nonqualified deferred compensation plans covered under section 409A. This notice also expands the types of plans eligible for relief under Notice 2010-6, provides an additional method of correction and transition relief under Notice 2010-6 for certain plan document failures relating to payments at separation from service, and modifies the correction reporting requirements in Notice 2008-113 and Notice 2010-6. Notices 2008-113 and 2010-6 modified.
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Notice 2010-77 - Extension of Deadline to Adopt Certain Retirement Plan Amendments
This notice further extends the deadline for amending qualified defined benefit plans to meet certain requirements of the Code that were added by the Pension Protection Act of 2006 (PPA '06) and subsequently modified by the Worker, Retiree, and Employer Recovery Act of 2008 (WRERA) and the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010 (PRA 2010). The deadline for adopting an interim or discretionary plan amendment under sections 401, 436, and 411 is extended to the last day of the first plan year that begins on or after January 1, 2011. A plan must continue to satisfy the operational compliance requirements of section 1107 of PPA '06 as a condition of the extension of the deadline for adopting plan amendments provided by this notice. Notice 2009-97 and Rev. Proc. 2007-44 modified.
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Monday, December 6, 2010
IRS Notice 2010-78 –2011 Limitations Adjusted As Provided in Section 415(d), etc.
Part III --- Administrative, Miscellaneous, and Procedural Related Links:
2011 cost-of-living adjustments; retirements plans, etc. This notice sets forth certain cost-of-living adjustments effective January 1, 2011, applicable to the dollar limitations on benefits and contributions under qualified retirement plans. The limitations that are adjusted by reference to § 415(d) generally will remain unchanged for 2011. Other limitations applicable to deferred compensation plans are also unchanged for 2011. This notice also contains cost-of-living adjustments for several pension-related amounts in restating the data in IR-2010-108 issued October 28, 2010. The limitation for defined contribution plans under § 415(c)(1)(A) remains unchanged for 2011 at $49,000.The limitation under § 402(g)(1) on the exclusion for elective deferrals described in § 402(g)(3) remains unchanged at $16,500.The annual compensation limit under §§ 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) remains unchanged at $245,000.The dollar limitation under § 416(i)(1)(A)(i) concerning the definition of key employee in a top-heavy plan remains unchanged at $160,000.The dollar amount under § 409(o)(1)(C)(ii) for determining the maximum account balance in an employee stock ownership plan subject to a 5-year distribution period remains unchanged at $985,000, while the dollar amount used to determine the lengthening of the 5-year distribution period remains unchanged at $195,000.The limitation used in the definition of highly compensated employee under § 414(q)(1)(B) remains unchanged at $110,000.The dollar limitation under § 414(v)(2)(B)(i) for catch-up contributions to an applicable employer plan other than a plan described in § 401(k)(11) or 408(p) for individuals aged 50 or over remains unchanged at $5,500. The dollar limitation under § 414(v)(2)(B)(ii) for catch-up contributions to an applicable employer plan described in § 401(k)(11) or 408(p) for individuals aged 50 or over remains unchanged at $2,500.The deductible amount under § 219(b)(5)(A) for an individual making qualified retirement contributions remains unchanged at $5,000.
Tuesday, November 30, 2010
IRS Notice 2010-84 –Guidance on In-Plan Roth Rollovers
Part III --- Administrative, Miscellaneous, and Procedural This notice provides guidance under § 402A(c)(4) of the Internal Revenue Code, relating to rollovers from § 401(k) plans to designated Roth accounts in the same plan ("in-plan Roth rollovers"), as added by § 2112 of the Small Business Jobs Act of 2010 ("SBJA"), P.L. 111-240. The guidance in this notice also generally applies to rollovers from § 403(b) plans to designated Roth accounts in the same plan. Answers for the following questions are provided in the notice: Related Links:
Monday, August 16, 2010
IRS Notice 2010-56 – Special Funding Rules for Multiemployer Plans Under PRA 2010
Part III --- Administrative, Miscellaneous, and Procedural IRS Notice 2010-56 – Special Funding Rules for Multiemployer Plans Under PRA 2010 This notice provides guidance on filing Form 5500 and Schedule MB for multiemployer defined benefit plans for plan sponsors who are considering use of the special funding rules under section 431(b)(8) of the Code, as added by the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010 (PRA 2010), for a plan year for which the Form 5500 (and Schedule MB) is filed. This notice also describes anticipated future guidance that will apply for sponsors of multiemployer defined benefit pension plans with respect to the special funding rules. Related Links:
Tuesday, February 2, 2010
IRS Notice 2010-15 – Miscellaneous HEART Act Changes
Part III --- Administrative, Miscellaneous, and Procedural IRS Notice 2010-15 – Miscellaneous HEART Act Changes Notice 2010-15 provides guidance in the form of questions and answers with respect to certain provisions of the Heroes Earnings Assistance and Relief Tax Act of 2008 ("HEART Act"). The notice also requests comments regarding any additional issues relating to the sections of the HEART Act that are addressed in the notice. Related Links: Related Blog Posts:
IRS Notice 2010-06 - Relief and Guidance on Corrections of Certain Failures of a Nonqualified Deferred Compensation Plan to Comply with § 409A(a)
Part III --- Administrative, Miscellaneous, and Procedural IRS Notice 2010-06 – Relief and Guidance on Corrections of Certain Failures of a Nonqualified Deferred Compensation Plan to Comply with § 409A(a) This notice provides rules governing the taxation of nonqualified deferred compensation plans. Section 409A of the Code requires that a nonqualified deferred compensation plan meet certain plan document requirements, and that the plan be operated in compliance with the plan document. Notice 2010-6 permits taxpayers to correct certain failures of a nonqualified deferred compensation plan to comply with the plan document requirements of section 409A, or in certain circumstances, to limit the amount includible in income and additional taxes under section 409A as a result of a plan document failure. Notices 2008-113 and 2008-115 modified. Related Links:
Sunday, December 20, 2009
IRS Notice 2009-93 – Truncating Social Security Numbers on Paper Payee Statements
Part III --- Administrative, Miscellaneous, and Procedural IRS Notice 2009-93 – Truncating Social Security Numbers on Paper Payee Statements Notice 2009-93 creates a pilot program allowing filers of information returns to truncate an individual payee's nine-digit identifying number on paper payee statements for calendar years 2009 and 2010 if the filers meet the requirements set forth in this notice. Notice 2009-93 will be published in Internal Revenue Bulletin 2009-51 on December 21, 2009. Related Links:
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