RULES AND REGULATIONS Treasury Regulations "A regulation is issued by the Internal Revenue Service and Treasury Department to provide guidance for new legislation or to address issues that arise with respect to existing Internal Revenue Code sections. Regulations interpret and give directions on complying with the law." REG-113891-07 - 72 Fed. Reg. 50544 (August 31, 2007) - Notice of Proposed Rulemaking Benefit Restrictions for Underfunded Pension Plans
Proposed regulations under section 436 of the Code provide guidance regarding benefit restrictions for certain underfunded defined benefit pension plans and regarding the use of certain funding balances maintained for defined benefit pension plans.
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IRS Proposed Regulations on Funding Balances and Benefit Restrictions Under PPA REG-148393-06 - 72 Fed. Reg. 46421 (August 20, 2007) - Notice of Proposed Rulemaking and Notice of Public Hearing Medical and Accident Insurance Benefits Under Qualified Plans
Proposed regulations under section 402 of the Code clarify that a payment from a qualified plan for an accident or health insurance premium generally constitutes a distribution under section 402(a) that is taxable to the distributee under section 72 in the taxable year in which the premium is paid. The taxable amount generally would equal the amount of the premium charged against the participant’s benefits under the plan. These regulations would also provide that a distribution for the payment of the premium by a qualified plan generally is not excluded from gross income under section 104, 105 or 106, but such distribution would constitute an amount paid for accident or health insurance under section 213. A public hearing is scheduled for December 6, 2007.
LINKS: [HTML] | [PDF] T.D. 9340 - 72 Fed. Reg. 41128 (July 26, 2007) - Revised Regulations Concerning Section 403(b) Tax-Sheltered Annuity Contracts
Final regulations provide updated guidance on tax-shelter annuities, custodial accounts of public schools and section 501(c)(3) tax-exempt organizations, and church retirement income accounts, authorized under section 403(b) of the Code. The regulations provide the public with the guidance necessary to comply with the law and will affect sponsors of section 403(b) contracts, administrators, participants and beneficiaries. The regulations also provide guidance relating to the controlled group rules under section 414(c) for entities that are tax-exempt under section 501(a).
LINKS: [HTML] | [PDF] T.D. 9335 - 72 Fed. Reg. 36891 (July 6, 2007) - Disclosure Requirements With Respect to Prohibited Tax Shelter Transactions
Temporary regulations under section 6033 of the Code provide rules regarding the form, manner, and timing of disclosure obligations with respect to prohibited tax shelter transactions to which tax-exempt entities are parties. The text of these regulations also serves as the text of the proposed regulations (REG-142039-06; REG-139268-06) in this Bulletin.
LINKS: [HTML] | [PDF] T.D. 9334 - 72 Fed. Reg. 36871 (July 6, 2007) - Requirement of Return and Time for Filing
Final, temporary, and proposed regulations under section 4965 of the Code provide guidance relating to the requirement of a return to accompany payment of excise taxes, the time for filing that return, and entity-level and manager-level excise taxes with respect to prohibited tax shelter transactions to which tax-exempt entities are parties.
LINKS: [HTML] | [PDF] REG-142039-06 and REG-139268-06 - 72 Fed. Reg. 36927 (July 6, 2007) - Notice of Proposed Rulemaking by Reference to Temporary Regulations and Notice of Proposed Rulemaking Excise Taxes on Prohibited Tax Shelter Transactions and Related Disclosure Requirements; Disclosure Requirements With Respect to Prohibited Tax Shelter Transactions; Requirement of Return and Time for Filing
Final, temporary, and proposed regulations under section 4965 of the Code provide guidance relating to the requirement of a return to accompany payment of excise taxes, the time for filing that return, and entity-level and manager-level excise taxes with respect to prohibited tax shelter transactions to which tax-exempt entities are parties.
LINKS: [HTML] | [PDF] T.D. 9331 - 72 Fed. Reg. 33387 (June 18, 2007) - Deemed IRAs in Governmental Plans/Qualified Nonbank Trustee Rules
Final regulations amend section 408(a) of the Code with regard to the requirements under section 408(a) for non-bank trustees for deemed IRAs. The regulations under section 408(a) provide that the Commissioner may, in his discretion, allow governmental entities to act as qualified nonbank trustees for deemed IRAs which are part of the entities’ qualified employer plan within the meaning of section 408(q).
LINKS: [HTML] | [PDF] REG-143601-6 - 72 Fed. Reg. 29456 (May 29, 2007) – Notice of Proposed Rulemaking Mortality Tables for Determining Present Value
Proposed regulations under section 430 of the Code provide generally applicable mortality tables to be used in determining present value or making any computation for purposes of applying the minimum funding requirements for single employer qualified defined benefit pension plans pursuant to changes made by the Pension Protection Act of 2006 (Pub. L. No. 109-280). The regulations also provide guidance regarding an employer’s request to use its own plan-specific mortality tables.
LINKS: [HTML] | [PDF] T.D. 9325 - 72 Fed. Reg. 28604 (May 22, 2007) - Distributions From a Pension Plan Upon Attainment of Normal Retirement Age
Final regulations under section 401 of the Code provide rules permitting in-service distributions to be made to a participant from a pension plan upon the participant’s attainment of normal retirement age. A plan’s normal retirement age must be an age that is not earlier than the earliest age that is reasonably representative of the typical retirement age for the industry in which the covered workforce is employed. A transition rule under section 411(d)(6) permitting the elimination of certain in-service distribution rights is provided. These regulations affect sponsors of, and participants in, tax-qualified plans.
LINKS: [HTML] | [PDF] T.D. 9324 - 72 Fed. Reg. 21103 (April 30, 2007) - Designated Roth Accounts Under Section 402A (IRC Section 402A Final Regulations)
Final regulations under section 402A of the Code provide guidance concerning the taxation of distributions from designated Roth accounts under qualified cash or deferred arrangements under section 401(k).
LINKS: [HTML] | [PDF] T.D. 9321 – 72 Fed. Reg 19234 (April 17, 2007) - Application of Section 409A to Nonqualified Deferred Compensation Plan (IRC Section 409A Final Regulations)
Final regulations set forth guidance on the application of section 409A to nonqualified deferred compensation plans. The regulations provide a definition of a nonqualified deferred compensation plan subject to section 409A, including rules related to the statutory effective date, and rules governing initial and subsequent deferral elections, the establishment of the time and form of payment, and the acceleration of payments under a plan. Notice 2005-1 obsoleted in part. Notice 2006-4 superseded in part. Notice 2006-64 superseded for taxable years on or after January 1, 2008.
LINKS: [HTML] | [PDF] T.D. 9319 - 72 Fed. Reg. 16878 (April 5, 2007) - Limitations on Benefits and Contributions Under Qualified Plans (IRC Section 415 Final Regulations)
Final regulations contain amendments to the regulations under section 415 of the Code regarding limitation on benefits and contributions under qualified plans. The amendments provide comprehensive guidance regarding the limitations of section 415, including updates to the regulations for numerous statutory changes since regulations were last published. The regulations also make conforming changes to regulations under sections 401(a)(9), 401(k), and 457, and make other minor corrective changes to regulations under section 457.
LINKS: [HTML] | [PDF] T.D. 9310 - 72 Fed. Reg. 4955 (February 2, 2007) - Updated Mortality Tables for Determining Current Liability
Final regulations under section 412(l)(7) of the Code provide mortality tables to be used in determining current liability for purposes of applying certain pension funding requirements.
LINKS: [HTML] | [PDF] T.D. 9302 - 71 Fed. Reg. 76134 (Dec. 20, 2006) - Prohibited Allocations of Securities in an S Corporation (IRC Section 409(p) Final Regulations)
Final regulations under section 409(p) of the Code provide guidance concerning requirements for employee stock ownership plans (ESOPs) holding stock of Subchapter S corporations.
LINKS: [HTML] | [PDF] T.D. 9294, Fed. Reg. 61877 (October 20, 2006) - Use of Electronic Media for Providing Employee Benefit Notices and Making Employee Benefit Elections and Consents
Final regulations under section 401 of the Code set forth standards for electronic systems that make use of an electronic medium to provide a notice to a recipient, or to make a participant election or consent, with respect to a retirement plan, an employee benefit plan, or an individual retirement plan.
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