Tax News

CCH (cch.taxgroup.com) reports:

  The IRS has extended the deadline for amending qualified retirement plans to meet certain requirements of the Internal Revenue Code that were added by the Pension Protection Act of 2006 (P.L. 109-280), and subsequently modified by the Worker, Retiree, and Employer Recovery Act of 2008 (P.L. 110-458). The deadline is extended to the last day of the first plan year that begins on or after January 1, 2010.

  This extension applies to: (1) the deadline for amending single-employer defined benefit plans to meet the requirements of Code Secs. 401(a)(29) and
436, relating to funding-based limits on benefits and benefit accruals under single-employer plans; (2) the deadline for amending cash balance and other applicable defined benefit plans, within the meaning of Code Sec. 411(a)(13)(C), to meet the requirements of Code Sec. 411(a)(13) (other than Code Sec. 411(a)(13)(A)) and Code Sec. 411(b)(5), relating to vesting and other special rules applicable to these plans; and (3) the deadline for amending applicable defined contribution plans, within the meaning of Code Sec. 401(a)(35)(E), to meet the requirements of Code Sec. 401(a)(35), relating to diversification requirements for certain defined contribution plans.

  The IRS has also provided for the anti-cutback requirements of Code Sec. 411(d)(6) for amendments that are adopted by the extended deadline for amending a plan to meet the requirements of Code Secs. 401(a)(29) and
436. The IRS expects that limited Code Sec. 411(d)(6) relief will be granted for amendments that are adopted by the extended deadline for amending a plan to meet the requirements of Code Sec. 411(b)(5) once final regulations under Code Secs. 411(a)(13) and 411(b)(5) are issued.

  The IRS's review of an application for a determination letter that is submitted before February 1, 2011, will not take into account the requirements of Code Secs. 401(a)(29) and
436. After January 31, 2009, and before February 1, 2011, the IRS will take into account the requirements of Code Secs. 401(a)(35), 411(a)(13) (including
Code Sec. 411(a)(13)(A)), or 411(b)(5), only if the plan has been amended to meet those requirements.

  Section 5.07(2) of Rev. Proc. 2007-44, I.R.B. 2007-28, 54, is modified. Notice 2008-108, 2008-2 CB 1275, is modified to provide that the Service's review of an application for a determination letter submitted during the submission period beginning on February 1, 2009, will take into account the requirements of Code Secs. 401(a)(35), 411(a)(13) (including
Code Sec. 411(a)(13)(A)), or 411(b)(5), only if the plan has been amended to meet those requirements.

Notice 2009-97, 2009FED ¶46,559

Other References:

 
Code Sec. 401

  CCH Reference - 2009FED ¶17,507.041

  CCH Reference - 2009FED ¶17,507.2531

 
Code Sec. 411

  CCH Reference - 2009FED ¶19,076.23

  Tax Research Consultant

  CCH Reference - TRC RETIRE: 15,050
CCH Reference - TRC RETIRE: 51,052.05