Tax News

CCH (cch.taxgroup.com) reports:

  For pension plan years beginning in July 2009, the IRS has released the corporate bond weighted average interest rate, the permissible range of interest rates used to calculate current plan liability and to determine the required contribution under Code Sec. 412(l) for plan years through 2009, and the current corporate bond yield curve and related segment rates for the purpose of establishing a plan's funding target under
Code Sec . 430(h)(2).

  The corporate bond weighted average interest rate for plan years beginning in July 2009 is 6.47 percent; and the 90-percent to 100-percent permissible range is 5.83 percent to 6.47 percent. The annual rate of interest on 30-year Treasury securities for June 2009, used to determine the minimum present value of a participant's benefit under Code Sec. 417(e)(1) and (2), is 4.52 percent.

  For plans electing not to use the transitional rule under Code Sec. 430(h)(2)(G), or for plans whose first year begins after 2009, the 24-month average segments rates for July 2009 are: 5.21 for the first segment; 6.74 for the second segment; and 6.84 for the third segment.

  For plan years beginning in 2009, the funding transitional segment rates for July 2009 are: 5.63 for the first segment; 6.65 for the second segment; and 6.72 for the third segment.

  For plan years beginning in 2009, the minimum present value transitional segment rates for June 2009 are: 4.27 for the first segment; 5.35 for the second segment; and 5.33 for the third segment.

Notice 2009-57, 2009FED ¶46,423

Other References:

 
Code Sec. 401

  CCH Reference - 2009FED ¶17,730.40

 
Code Sec. 412

  CCH Reference - 2009FED ¶19,125.505

 
Code Sec. 417

 
Code Sec. 430

  CCH Reference - 2009FED ¶20,161.30

  Tax Research Consultant

  CCH Reference - TRC RETIRE: 15,304.05
CCH Reference - TRC RETIRE: 15,304.10
CCH Reference - TRC RETIRE: 30,556