Part III. Administrative, Procedural, and Miscellaneous 26 CFR 601.201: Rulings and determination letters. IRS Revenue Procedure 2008-05 - Rulings and determination letters Technical advice. Revised procedures are provided for furnishing technical advice to area managers and appeals offices by the Office of the Division Commissioner, Tax Exempt and Government Entities, regarding issues in the employee plans area (including actuarial matters) and in the exempt organizations area. Rev. Proc. 2007-5 superseded. Related Links:
Technical advice. Revised procedures are provided for furnishing technical advice to area managers and appeals offices by the Office of the Division Commissioner, Tax Exempt and Government Entities, regarding issues in the employee plans area (including actuarial matters) and in the exempt organizations area. Rev. Proc. 2006-5 superseded. This revenue procedure is the basic EP and EO technical advice procedure.
LINKS: [HTML] [PDF]
Tuesday, January 8, 2008
IRS Revenue Procedure 2008-05 - Rulings and determination letters
IRS Revenue Procedure 2008-04 - Rulings and determination letters
Part III. Administrative, Procedural, and Miscellaneous 26 CFR 601.201: Rulings and determination letters. IRS Revenue Procedure 2008-04 - Rulings and determination letters
Rulings and information letters; issuance procedures. Revised procedures are provided for furnishing ruling letters, information letters, etc., on matters related to sections of the Code currently under the jurisdiction of the Office of the Division Commissioner, Tax Exempt and Government Entities. Rev. Proc. 2007-4 superseded.
Related Links:
- IRS Revenue Procedure 2007-4, 2007-1 I.R.B. 118
Rulings and information letters; issuance procedures. Revised procedures are provided for furnishing ruling letters, information letters, etc., on matters related to sections of the Code currently under the jurisdiction of the Office of the Division Commissioner, Tax Exempt and Government Entities. Rev. Proc. 2006-4 superseded. This revenue procedure is the basic EP and EO letter ruling procedure
LINKS: [HTML] [PDF]
Thursday, January 3, 2008
Treasury Regulation - REG–136701–07 - Diversification Requirements for Certain Defined Contribution Plans
26 CFR Part [REG–136701–07] RIN1545–BH04 Treasury Regulation - REG–136701–07 - Diversification Requirements for Certain Defined Contribution Plans Proposed regulations under section 401 of the Code provide guidance relating to diversification requirements for certain defined contribution plans and to publicly traded employer securities. The Treasury Department and the IRS released proposed regulations under IRC Section 401(a)(35), "relating to diversification requirements for certain defined contribution plans and to publicly traded employer securities. These regulations will affect administrators of, employers maintaining, participants in, and beneficiaries of defined contribution plans that are invested in employer securities." Background: Outline
· Overview
· Basic Diversification Rights
· Plans Subject to Section 401(a)(35)
· Prohibition on Restriction or Conditions
Tuesday, January 1, 2008
Employee Plans News - Special Edition, January 2008
The IRS published Employee Plans News - Special Edition, January 2008:
This special edition announces that Forms 4461-A, 5329, and 5558 have been revised and are available. Form 5330 is currently being revised. In addition, this special edition reminds you that the Cycle B submission period for determination applications ends January 31, 2008 and Cycle C begins February 1, 2008. Proposed cash balance regulations and section 430 proposed regulations were issued on December 28, 2007.
DOL Field Assistance Bulletins – 2008 Index
DOL Field Assistance Bulletins – 2008 Index
IRS Newsletters - 2008 Index
Employee Plans News
Geared toward retirement plan practitioners - attorneys, accountants, actuaries and others - this newsletter presents information about retirement plans.
- Employee Plans News - Winter 2009 Edition
- Employee Plans News - Special Edition, November 5, 2008
- Employee Plans News – Fall 2008 Edition
- Employee Plans News - Special Edition, September, 2008
- Employee Plans News - Special Edition, August 25, 2008
- Employee Plans News - Special Edition, August 14, 2008
- Employee Plans News - Special Edition, August 6, 2008
- Employee Plans News - Special Edition, July 1, 2008
- Employee Plans News - Summer 2008 Edition
- Governmental Plans Roundtable (April 22, 2008)
- Employee Plans News - Special Edition, April 2008
- Employee Plans News - Spring 2008 Edition
- Employee Plans News - Special Edition, March 11, 2008
- Employee Plans News - Special Edition, January 2008
Designed for employers and business owners, this newsletter provides practical retirement plan information.
- Retirement News for Employers - Special Edition, December 2008
- Retirement News for Employers - Fall 2008 Edition
- Retirement News for Employers - Special Edition, August 29, 2008
- Retirement News for Employers - Summer 2008 Edition
- Retirement News for Employers - Special Edition, August 14, 2008
- Retirement News for Employers - Spring 2008 Edition
Timing is Everything
“Timing is Everything” is a one-page flyer designed for employers to share with their employees and provides plain-language, bullet-point information about retirement.
Treasury Regulations – 2008 Index
"Issued guidance regarding the Service's position with respect to how the Internal Revenue Code is to be interpreted. The provided materials relate specifically to retirement plans."
IRS Revenue Rulings – 2008 Index
"A revenue ruling is an official interpretation by the Service of the Internal Revenue Code, related statutes, tax treaties, and regulations. It is the conclusion of the Service on how the law is applied to a specific set of facts. The provided materials relate specifically to retirement plans."
- IRS Revenue Ruling 2008-13 – Excessive Compensation
- IRS Revenue Ruling 2008-07 - Minimum Vesting Standards - Rev. Rul. 2008-7, 2008-7 I.R.B. 419 - This revenue ruling addresses the accrual rules and the "greater of" issue where there is an amendment of a traditional defined benefit formula in 2001 to a lump sum-based benefit formula for plan years beginning on or after January 1, 2002.
IRS Revenue Procedures – 2008 Index
"A revenue procedure is an official statement of a procedure that affects the rights of duties of taxpayers or other members of the public under the Internal Revenue Code, related statutes, tax treaties, and regulations that should be a matter of public knowledge. The provided materials relate specifically to retirement plans."
- IRS Revenue Procedure 2008-08 - Rulings and determination letters - Rev. Proc. 2008-8, 2008-1 I.R.B. 233 - This is the annual EP/EO revenue procedure on user fees.
- IRS Revenue Procedure 2008-06 - Rulings and determination letters - Rev. Proc. 2008-6, 2008-1 I.R.B.192 - This is the annual EP determination letter revenue procedure.
- IRS Revenue Procedure 2008-05 - Rulings and determination letters - Rev. Proc. 2008-5, 2008-1 I.R.B. 164 - This is the basic, annual EP/EO revenue procedure on technical advice.
- IRS Revenue Procedure 2008-04 - Rulings and determination letters - Rev. Proc. 2008-4, 2008-1 I.R.B. 121 - This is the basic, annual EP/EO revenue procedure on letter rulings.
IRS Announcements – 2008 Index
"An announcement is a public pronouncement that has only immediate or short-term value. For example, announcements can be used to summarize the law or regulations without making any substantive interpretation or to notify taxpayers of approaching filing deadlines. The provided materials relate specifically to retirement plans."
IRS Notices – 2008 Index
"A notice is a public pronouncement that may contain guidance that involves substantive interpretations of the Code or other provisions of the law. For example, notices can be used to relate what regulations will say in situations where the regulations may not be published in the immediate future. The provided materials relate specifically to retirement plans."
- IRS Notice 2008-65 – Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates - Notice 2008-65, 2008-30 I.R.B. - This notice contains updates for interest rates for funding requirements under sections 412(b)(5)(B) and 430(h)(2) of the Code applicable for July 2008, and updates for interest rates for minimum present value determinations under 417(e)(3) of the Code for June 2008.
- IRS Notice 2008-53 – Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates - Notice 2008-53, 2008-26 I.R.B. 1188 - This notice contains updates for interest rates for funding requirements under sections 412(b)(5)(B) and 430(h)(2) of the Code applicable for June 2008, and updates for interest rates for minimum present value determinations under 417(e)(3) of the Code for May 2008.
- IRS Notice 2008-50 – Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates - Notice 2008-50, 2008-21 I.R.B. 1010 - This notice contains updates for interest rates for funding requirements under sections 412(b)(5)(B) and 430(h)(2) of the Code applicable for May 2008, and updates for interest rates for minimum present value determinations under 417(e)(3) of the Code for April 2008.
- IRS Notice 2008-45 - Update for Weighted Interest Rates, Yield Curves, and Segment Rates - Notice 2008-45, 2008-17 I.R.B. 835 - This notice contains updates for interest rates for funding requirements under sections 412(b)(5)(B) and 430(h)(2) of the Code applicable for April 2008, and updates for interest rates for minimum present value determinations under 417(e)(3) of the Code for March 2008.
- IRS Notice 2008-37 - Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates - Notice 2008-37 2008-12 , I.R.B. 654 - This notice contains updates for interest rates for funding requirements under sections 412(b)(5)(B) and 430(h)(2) of the Code applicable for March 2008, and updates for interest rates for minimum present value determinations under 417(e)(3) of the Code for February 2008.
- IRS Notice 2008-30 - Miscellaneous Pension Protection Act Changes - Notice 2008-30, 2008-12 I.R.B. 638 - This notice provides guidance in the form of questions and answers with respect to certain distribution-related provisions of PPA’06, that are effective in 2008 (as well as gap-period earnings).
- IRS Notice 2008-29 - Alternative Disability Mortality Tables – Continued Reliance on Revenue Ruling 96-7 - Notice 2008-29, 2008-12 I.R.B. 637 - This notice states that pending further guidance, for purposes of section 430(h)(3)(D) and section 431(c)(6)(D)(v), taxpayers may continue to rely on the mortality tables in Rev. Rul. 96-7, 1996-1 C.B. 59, for the alternative mortality tables for disabled participants in qualified defined benefit pension plans.
- IRS Notice 2008-24 - Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates - Notice 2008-24, 2008-8, I.R.B. 466 - This notice contains updates for interest rates for funding requirements under sections 412(b)(5)(B) and 430(h)(2) of the Code applicable for February 2008, and updates for interest rates for minimum present value determinations under 417(e)(3) of the Code for January 2008.
- IRS Notice 2008-23 - Supplemental Health Insurance Coverage as Excepted Benefits Under HIPAA and Related Legislation
- IRS Notice 2008-21 – Transition Guidance for New Funding Rules and Funding-Related Benefit Limitations under PPA ‘06 - Notice 2008-21, 2008-7, I.R.B. (January 31, 2008) - This notice extends the effective date of certain proposed regulations and establishes a 2008 transitional rule for small defined benefit plans with end-of the-year valuations.
- IRS Notice 2008-17 - Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates - Notice 2008-17, 2008-4, I.R.B. 316 - This notice contains updates for the corporate bond weighted average interest rate for plan years beginning in January 2008, 24-month average segment rates, and funding transitional segment rates applicable for January 2008.
- IRS Notice 2008-8 - Information Reporting Requirements Under Internal Revenue Code § 6039
- IRS Notice 2008-7 - Extension of Transitional Relief for Diversification Requirements for Certain Defined Contribution Plans - Notice 2008-7, 2008-3, I.R.B. - This notice extends certain transitional relief under 401(a)(35) of the Code for certain defined contribution plans that hold publicly-traded stock of their employers.
DOL Final Regulations – 2008 Index
Historical Links
DOL Proposed Regulations/DOL News – 2008 Index
DOL Proposed Regulations The purpose of DOL proposed regulations is "to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules." DOL News
The purpose of DOL News is to provide links to DOL related news that is not in the format of a DOL final regulation, DOL proposed regulation, or a DOL field assistance bulletin.
- DFVCP Penalty Calculator and Online Payment/Actuarial Information Search
- DOL Website Provides Updated Contact Information for Hurricane Victims
- DOL Official Testifies on Fee Disclosures
- DOL and SEC Announce Memorandum of Understanding (MOU)
- DOL Issues 40-FAQs About IRS Form 5500 – Schedule C
- DOL Testifies About Employer-Sponsored IRAs
- The DOL Announces Disaster Relief after Severe Weather Hits
- Report Of The Working Group On Participant Benefit Statements
- IRS Form 5500 Filing Update Web Cast
- IRS Form 5500 Extension after Severe Weather Hit Kentucky
- Agenda and Testimony Requests and Outlines for Hearing on Reasonable Contracts or Arrangements Under Section 408(b)(2)--Fee Disclosure
- DOL Notice - Hearing on Reasonable Contracts or Arrangements Under Section 408(b)(2)--Fee Disclosure
Historical Links
Friday, December 28, 2007
Treasury Regulation - REG-139236-07 - Measurement of Assets and Liabilities for Pension Funding Purposes
26 CFR Part 1 [REG-139236-07] RIN 1545-BH07 Treasury Regulation - REG-139236-07 - Measurement of Assets and Liabilities for Pension Funding Purposes Proposed regulations under section 430 of the Code provide guidance on the valuation of plan assets and the determination of benefit liabilities for purposes of the funding requirements that apply to single employer defined benefit plans pursuant to changes made by the Pension Protection Act of 2006. This guidance covers the determination of the plan’s funding target and normal cost, rules regarding the plan’s valuation date, the determination of the actuarial value of plan assets, rules regarding interest rates applied for minimum funding purposes, and special rules for at-risk plans. The Treasury and the IRS issued additional proposed regulations on Pension Protection Act funding rules: IR-2007-212, Dec. 28, 2007 WASHINGTON — The Treasury Department and the Internal Revenue Service today issued proposed regulations that provide employers sponsoring single-employer defined benefit plans with guidance regarding the measurement of pension assets and liabilities under the new funding rules enacted as part of the Pension Protection Act of 2006.
These proposed regulations, together with proposed regulations related to mortality issued in May, proposed regulations relating to funding balances and funding-based benefit limitations issued in August, the yield curve guidance issued in October, and guidance on lump sum determinations issued in November will assist plan sponsors in determining the contribution requirements that apply to their defined benefit plans for the first year that the new funding rules apply.
Although the new funding rules are generally effective for plan years beginning on or after Jan. 1, 2008, these regulations are proposed to be effective for plan years beginning on or after Jan. 1, 2009. However, plan sponsors can rely on these proposed regulations for purposes of satisfying the requirements of section 430 for plan years beginning in 2008.
The Treasury Department and the Internal Revenue Service intend to issue guidance in the near future indicating that the proposed effective date for these regulations should also apply for the proposed regulations relating to employer-specific mortality tables issued in May and the proposed regulations related to funding balances and funding based-benefit limitations under sections 430(f) and 436 issued in August. Although final regulations will not apply to plan years beginning before January 1, 2009, plan sponsors may also rely on those proposed regulations for purposes of satisfying the statutory requirements for plan years beginning in 2008.
On Dec. 19, 2007, the Senate passed an amended version of the Pension Protection Technical Corrections Act of 2007. These proposed regulations, like the earlier proposed regulations, do not reflect any proposed technical corrections. Nor do they include any reflection of the proposed modification to the rules for determining asset values. After technical corrections are enacted, the regulations will be modified to take into account the enacted provisions.
Related Links:
- Treasury Regulation - REG-139236-07, 2008-9 I.R.B. 491 (March 3, 2008) - Measurement of Assets and Liabilities for Pension Funding Purposes [PDF]
- Treasury Regulation - REG-139236-07, 2008-9 I.R.B. 491 (March 3, 2008) - Measurement of Assets and Liabilities for Pension Funding Purposes [HTML]
- Proposed pension funding regs criticized at IRS hearing
- IRS to Postpone Effective Date of PPA Funding Regulations Until 2009 But Will Permit Interim Reliance
- Preparing for 2008 -- IRS proposes "final" funding rules
- IRS Proposed Rules for Measuring Defined Benefit Plan Assets and Liabilities
- Pomeroy Letter to Treasury
- PPA...Ready or Not
- Funding Yield Curve Segment Rates
- IRS proposes rules on measurement of plan assets and liabilities under PPA
- IRS Issues Proposed Regulations on Valuing Assets and Liabilities Under New Funding Rules
- Three Out of Four: The New Proposed Regs on Funding Requirements for DB Plans
- IRS Rings in the New Year with New Cash Balance Regs and DB Lump Sum Regs
Treasury Regulation - REG–104946–07 - Hybrid Retirement Plans
26 CFR Part 1 [REG–104946–07] RIN 1545–BG36 Treasury Regulation - [REG–104946–07] - Hybrid Retirement Plans Proposed regulations provide guidance under sections 411(a)(13) and 411(b)(5) of the Code, which were added by the Pension Protection Act of 2006. Section 411(a)(13) provides rules relating to vesting and payment of benefits that must be satisfied in order for hybrid defined benefit plans to be tax-qualified. Section 411(b)(5) provides age discrimination rules for tax-qualified defined benefit plans, including hybrid defined benefit plans. The Treasury and the IRS issued proposed regulations for cash balance and other hybrid pension plans:
IR-2007-211, Dec. 28, 2007
WASHINGTON — The Treasury Department and Internal Revenue Service (IRS) issued proposed regulations relating to cash balance plans and other hybrid pension plans. The proposed regulations would interpret rules that were added to the tax law by the Pension Protection Act of 2006 (PPA), including an age discrimination safe harbor for hybrid pension plans, conversion protection for employees, and a 3-year minimum vesting requirement. The proposed regulations would also apply for purposes of the parallel rules that were added by PPA to the Employee Retirement Income Security Act of 1974 (ERISA).The regulations are generally proposed to be effective for plan years beginning on and after Jan. 1, 2009. For periods before the effective date of these regulations, a plan must comply with the new PPA statutory provisions. During these periods, a plan is permitted to rely on the regulations for purposes of satisfying the new PPA statutory provisions.
Related Links:
- REG 104946–07 - 72 Fed. Reg 73680 (December 28, 2007) [PDF]
- Treasury Regulation - [REG–104946–07], 2008-11 I.R.B. 596 (March 17, 2008) - Hybrid Retirement Plans [HTML]
- 2008-11 I.R.B. 596 (March 17, 2008)
- Treasury Regulation REG-104946-07 – Hybrid Retirement Plans; Correction
- Highlights of Proposed Rules for Hybrid Plans
- IRS Publishes Proposed Regulations for Hybrid Plans
- IRS Proposes Cash Balance Regulations
- IRS Proposes Regulations on PPA Requirements for Hybrid Plans
- IRS Proposes Rule view]s for Cash Balance and Other Hybrid Pension Plans
- Proposed cash balance/hybrid plan regs issued by IRS
- New IRS Proposed Regulations on Cash Balance and Other Hybrid Plans
- IRS Issues Proposed Regulations on Hybrid Plans
- IRS Proposes Hybrid Plan And Pension Asset Rules
- IRS Rings in the New Year with New Cash Balance Regs and DB Lump Sum Regs
- GRIST Alert: IRS proposes regulations on new PPA rules for cash balance and other hybrid plans
- Proposed Regulations on Cash Balance Defined Benefit Plans Released (NPRM REG-104946-07)
Thursday, December 27, 2007
IRS Revenue Ruling 2008-5 - Losses from wash sales of stock or securities
Part I
Section 1091.—Loss from Wash Sales of Stock or Securities
26 CFR 1.1091-1: Losses from wash sales of stock or securities.
IRS Revenue Ruling 2008-5 - Losses from wash sales of stock or securities
If an individual sells stock or securities for a loss and causes his or her individual
retirement account or Roth IRA to purchase substantially identical stock or securities
within 30 days before or after the sale, is the loss on the sale of the stock or securities
disallowed?
Related Links:
- IRS Revenue Ruling 2008-05, I.R.B. - Losses from wash sales of stock or securities [PDF]
- IRS Revenue Ruling 2008-05, I.R.B. - Losses from wash sales of stock or securities [HTML]
Wednesday, December 26, 2007
IRS Notice 2007-101 - Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates
Part III --- Administrative, Miscellaneous, and Procedural
IRS Notice 2007-101 - 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 2007; the 24-month average segment rates; the funding transitional segment rates applicable for December 2007; and the minimum present value transitional rates for November 2007.
Related Links:
IRS Notice 2007-100 - Transition Relief and Guidance on Corrections of Certain Failures of a Nonqualified
Part III – Administrative, Procedural, and Miscellaneous
IRS Notice 2007-100 - Deferred Compensation Plan to Comply with § 409A(a) in Operation
This notice provides transition relief and guidance on the correction of certain failures of a nonqualified deferred compensation plan to comply with section 409A(a) of the Code in operation (an operational failure), including: (1) methods for correcting certain operational failures during a service provider’s taxable year in which the failure occurs to avoid income inclusion under section 409A(a); (2) transition relief limiting the amount includible in income under section 409A(a) for certain operational failures occurring in a service provider’s taxable year beginning before January 1, 2010, that involve only limited amounts; (3) an outline of, and request for comments on, a potential corrections program that would permit service recipients and service providers to limit the amounts required to be included in income under section 409A(a) due to certain operational failures.
Related Links:
- IRS Notice 2007-100, 2007-52 I.R.B. (December 26, 2007) -
Transition Relief and Guidance on Corrections of Certain Failures of a Nonqualified
Deferred Compensation Plan to Comply with § 409A(a) in Operation [HTML] - IRS Notice 2007-100, 2007-52 I.R.B. (December 26, 2007) -
Transition Relief and Guidance on Corrections of Certain Failures of a Nonqualified
Deferred Compensation Plan to Comply with § 409A(a) in Operation [PDF]
IRS Notice 2007-99 - Modification of Q&A-23 of Notice 2007-7
Part III – Administrative, Procedural, and Miscellaneous
IRS Notice 2007-99 - Modification of Q&A-23 of Notice 2007-7
Distributions from governmental plans and health and accident insurance; section 845 of PPA '06. As a result of section 845 of the Pension Protection Act of 2006 and section 9(i)(1)(B) and (C) of S. 1974 and H.R. 3361, the pending Pension Protection Technical Corrections Acts of 2007, Q&A-23 of Notice 2007-7, 2007-5 I.R.B. 395, pertaining to distributions from certain health and accident plans is altered. Notice 2007-7 modified.
Related Links:
Friday, December 21, 2007
Treasury Regulation - TD 9370 - User Fees Relating to Enrollment To Perform Actuarial Services
26 CFR Part 300
[TD 9370]
RIN 1545–BG88
Treasury Regulation - TD 9370 - User Fees Relating to Enrollment To Perform Actuarial Services
This final regulation contains relates to user fees for the initial and renewed enrollment to become an enrolled actuary.
Related Links:
Wednesday, December 19, 2007
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 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 - 2007 Cumulative List of Changes in Plan Qualification Requirements
Part III – Administrative, Procedural and Miscellaneous IRS Notice 2007-94 - 2007 Cumulative List of Changes in Plan Qualification Requirements Retirement plans; qualification, list of changes. This notice sets forth a list of changes referred to in Rev. Proc. 2007-44, 2007-28 I.R.B. 54, pertaining to the statutory, regulatory, and guidance changes needed for certain requests to the Service for opinion, advisory, and determination letters for the 12-month period beginning February 1, 2008. Related Links:
IRS Revenue Procedure 2007-71 – Rulings and determination letters
Part III --Administrative, Procedural, and Miscellaneous 26 CFR 601.201: Rulings and determination letters. (Also, Part I, § 403; § 1.403(b)-3.) IRS Revenue Procedure 2007-71 – Rulings and determination letters Tax-sheltered annuities; written program; public schools; model amendments. This procedure sets forth model amendments that may be adopted in order to satisfy certain requirements for a definite written program for certain tax-sheltered annuities under section 403(b) of the Code. This revenue procedure also provides additional relief for certain section 403(b) tax-sheltered annuity contracts. Related Links:
DOL Proposed Regulation – Civil Penalties Under ERISA Section 502(c)(4)
29 CFR Part 2560 RIN 1210-AB24 DOL Proposed Regulation – Civil Penalties Under ERISA Section 502(c)(4) The DOL announced a proposed regulation for "assessing civil penalties against plan administrators who fail to disclose certain documents to participants, beneficiaries and others as required by the Employee Retirement Income Security Act, as amended by the Pension Protection Act (PPA)": Related Links: "The PPA established new disclosure provisions relating to: funding-based limits on benefit accruals and certain forms of benefit distributions; plan actuarial and financial reports; withdrawal liability of contributing employers; and participants' rights and obligations under automatic contribution arrangements. The PPA gives the department authority to assess civil monetary penalties of up to $1,000 per day against plan administrators for violations of the new disclosure requirements. The proposed regulation sets forth the administrative procedures for assessing and contesting such penalties and does not address substantive provisions of the new
disclosure requirements."News Release
Thursday, December 13, 2007
DOL Proposed Regulation - Reasonable Contract or Arrangement Under Section 408(b)(2)--Fee Disclosure
29 CFR Part 2550 RIN 1210-AB08 DOL Proposed Regulation - Reasonable Contract or Arrangement Under Section 408(b)(2)--Fee Disclosure According to a news release, the U.S. Labor Department is proposing regulations to increase the disclosure of fees and conflict of interests affecting 401(k) and other employee benefit plans: "Washington – The U.S. Department of Labor today announced a proposed rule that will enhance disclosure to fiduciaries of 401(k) and other employee benefit plans to assist them in determining the reasonableness of compensation paid to plan service providers and conflicts of interest that may affect a service provider's performance under a service contract or arrangement. "One of the department's top priorities is improved disclosure in order to ensure that participants and fiduciaries have the information they need to make informed decisions," said U.S. Secretary of Labor Elaine L. Chao. "We are working quickly to implement regulations that foster fair, competitive and transparent prices for services as well as combat excessive or hidden plan fees." The proposed regulation would enhance disclosure to plan fiduciaries by requiring that contracts between certain service providers and plans provide for specific and detailed information. The proposal requires that all services furnished to a plan and all compensation, direct and indirect, to be received by the service provider be disclosed in writing. The proposal also requires the disclosure of possible conflicts of interest of the service provider that may affect the performance of plan services. In addition, the department is proposing a class exemption to provide relief to plan fiduciaries who enter into deficient contracts with service providers that, unbeknownst to the plan fiduciary, failed to comply with their disclosure obligations. 401(k) savings and other employee benefit plans are critical to the retirement and health security of American workers and their families," said Bradford P. Campbell, assistant secretary for the Labor Department's Employee Benefits Security Administration. "This initiative enhances disclosure of fees and conflicts of interest that can affect workers' interests and is an important part of our continued efforts to enhance workers' benefit security."" The fact sheet describes the following disclosure requirements: "Disclosure of Services and Compensation - The terms of the contract must require that the service provider disclose information regarding all services to be performed and all compensation that will be received either directly from the plan or indirectly from parties other than the plan or plan sponsor. The proposal includes a definition of "compensation or fees" and rules for bundled service providers and for estimating the amount of prospective compensation. Disclosure of Conflicts of Interest - Service providers also must disclose information about relationships or interests that may raise conflicts of interest for the service provider in performing plan services. Specifically, service providers must describe: Related Links: Ongoing Disclosure Obligations - The proposal includes ongoing disclosure obligations relating to:
Monday, December 10, 2007
IRS Revenue Ruling 2007-71 - Permitted disparity in employer-provided contributions or benefits
Part I Section 401. -- Qualified Pension, Profit-Sharing, and Stock Bonus Plans 26 CFR 1.401(l)-1: Permitted disparity in employer-provided contributions or benefits IRS Revenue Ruling 2007-71 - Permitted disparity in employer-provided contributions or benefits 2008 covered compensation tables; permitted disparity. The covered compensation tables under section 401 of the Code for the year 2008 are provided for use in determining contributions to defined benefit plans and permitted disparity. Related Links: IRS Revenue Ruling 2007-71, 2007-50 I.R.B. - Permitted disparity in employer-provided contributions or benefits (December 10, 2007) [PDF]
