The Pension Protection Act of 2006 amended the Code to add Section 414(x) governing eligible combined plans, i.e., combination defined benefit and defined contribution plans. Notice 2009-71 request comments on the rules that should apply.
Document Excerpt
The Treasury Department and the Internal Revenue Service plan to issue guidance relating to eligible combined plans under § 414(x) of the Internal Revenue Code (Code). Section 414(x) was added by section 903(a) of the Pension Protection Act of 2006, Public Law 109-280, 120 Stat. 780 (PPA ’06), effective for plan years beginning after December 31, 2009, and amended by section 109(c) of the Worker, Retiree, and Employer Recovery Act of 2008, Public Law 110-458, 122 Stat. 5092 (WRERA). An eligible combined plan provides a vehicle through which an employer can maintain both a defined contribution plan and a defined benefit plan on a combined basis, thus reducing the administrative burdens and costs of maintaining separate 2 plans. This notice requests comments on issues presented by § 414(x) of the Code with respect to eligible combined plans.
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