Benefits Forward » IRS Guidance

Proposed Regs on Longevity Annuities Purchased Under DC Plans

administrator — Fri, 03 Feb 2012 22:02:27 +0000

The IRS has released proposed regulations on the purchase of longevity annuities under a defined contribution plan.

Document Excerpt

This document contains proposed regulations relating to the purchase of longevity annuity contracts under tax-qualified defined contribution plans under section 401(a) of the Internal Revenue Code (Code), section 403(b) plans, individual retirement annuities and accounts (IRAs) under section 408, and eligible governmental section 457 plans. These regulations will provide the public with guidance necessary to comply with the required minimum distribution rules under section 401(a)(9). The regulations will affect individuals for whom a longevity annuity contract is purchased under these plans and IRAs (and their beneficiaries), sponsors and administrators of these plans, trustees and custodians of these IRAs, and insurance companies that issue longevity annuity contracts under these plans and IRAs. This document also provides a notice of a public hearing on these proposed regulations.Show citation box

Link http://www.gpo.gov/fdsys/pkg/FR-2012-02-03/pdf/2012-2340.pdf

Treatment of Rollover to Defined Benefit

administrator — Thu, 02 Feb 2012 16:52:47 +0000

Revenue Ruling 2012-4 provides guidance as to whether a defined benefit plan that accepts an eligible rollover distribution from a defined contribution plan maintained by the same employer satisifes Section 411 and 415 where the defined benefit plan provides an annuity for the rollover funds.

Document Excerpt

Does a qualified defined benefit pension plan that accepts a direct rollover of an eligible rollover distribution from a qualified defined contribution plan maintained by the same employer satisfy §§ 411 and 415 of the Internal Revenue Code in a case in which the defined benefit plan provides an annuity resulting from the direct rollover that is determined by converting the amount directly rolled over into an actuarially equivalent immediate annuity using the applicable interest rate and the applicable mortality table under § 417(e)?

Link http://www.irs.gov/pub/irs-drop/rr-12-04.pdf

Guidance on Survivor Benefit Rules

administrator — Thu, 02 Feb 2012 16:46:11 +0000

Revenue Ruling 2012-3 provides guidance as to how the QJSA and QPSA rules apply when a deferred annuity contract is purchased under a profit sharing plan.

Document Excerpt

How do the qualified joint and survivor annuity (“QJSA”) and the qualified preretirement survivor annuity (“QPSA”) rules, described in §§ 401(a)(11) and 417 of the Internal Revenue Code, apply when a deferred annuity contract is purchased under a profit-sharing plan in the situations described below?

Link http://www.irs.gov/pub/irs-drop/rr-12-03.pdf

Guidance on HSA Eligibility for certain Individuals

administrator — Wed, 01 Feb 2012 20:06:57 +0000

Notice 2012-14 addresses whether individuals who are eligible for services at an Indian Health Services facility are eligible individuals for purposes of Health Savings Accounts.

Document Excerpt

This notice provides guidance on whether an individual eligible to receive medical services at an Indian Health Service facility is an “eligible individual” with respect to Health Savings Accounts (HSAs) under § 223 of the Internal Revenue Code (the Code).

Link http://www.irs.gov/pub/irs-drop/n-12-14.pdf

IRS to Hold Phone Forum on 401(k) Questionaire

administrator — Wed, 01 Feb 2012 15:01:33 +0000

The IRS will hold a phone forum on March 6, 2012 on the results from its Quesionaire and problems found.

Document Excerpt

The 401(k) Questionnaire Interim Report, its next steps, and current issues found in 401(k) audits will be discussed by Monika Templeman, Director of Employee Plans Examinations, along with IRS staff members Janice Gore and Rhonda Migdail. Email specific issues that you would like addressed to ep.phoneforum@irs.gov by February 17.

Link http://www.irs.gov/retirement/article/0,,id=218995,00.html

Corporate Bond Interest Rates

administrator — Wed, 18 Jan 2012 15:03:27 +0000

Notice 2012-10 provides guidance as to the corporate bond weighted interest rate and the permissible range as in effect for plan years beginning before 2008.

Document Excerpt

This notice provides guidance as to the corporate bond weighted average interest rate and the permissible range of interest rates specified under § 412(b)(5)(B)(ii)(II) of the Internal Revenue Code as in effect for plan years beginning before 2008. It also provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), and the 24-month average segment rates under § 430(h)(2). In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008, the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I), and the minimum present value segment rates under § 417(e)(3)(D) as in effect for plan years beginning after 2007.

Link http://www.irs.gov/pub/irs-drop/n-12-10.pdf

Corporate Bond Weighted Interest Rates

administrator — Fri, 06 Jan 2012 20:38:17 +0000

Notice 2011-100 provides guidance as to the corporate bond weighted average interest rate and the permissible range interest rates as in effect for plan years beginning before 2008.

Document Excerpt

Link http://www.irs.gov/pub/irs-drop/n-11-100.pdf

Updated Covered Compensation

administrator — Thu, 05 Jan 2012 23:12:18 +0000

Rev. Rul. 2012-5 contains new covered compensation tables.

Document Excerpt

This revenue ruling provides tables of covered compensation under § 401(l)(5)(E) of the Internal Revenue Code (the “Code”) and the Income Tax Regulations thereunder, for the 2012 plan year.

Link http://www.irs.gov/pub/irs-drop/rr-12-05.pdf

Recent Revenue Procedures

administrator — Wed, 04 Jan 2012 15:35:33 +0000

As of the beginning of the new year, the IRS has issued a number of revenue procedures that may be of interest to retirement plan sponsors and practitioners.

Document Excerpt

These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations.

Link http://www.irs.gov/pub/irs-irbs/irb12-01.pdf

Informational Reporting of Health Cost

administrator — Tue, 03 Jan 2012 22:04:25 +0000

Notice 2012-9 amends and restates interim guidance on the reporting to employees of employer cost of health coverage.

Document Excerpt

This notice restates and amends the interim guidance on informational reporting to employees of the cost of their employer-sponsored group health plan coverage initially provided in Notice 2011-28, 2011-16 I.R.B. 656. This informational reporting is required under § 6051(a)(14) of the Internal Revenue Code (Code), enacted as part of the Patient Protection and Affordable Care Act of 2010 (the Affordable Care Act), Public Law, 111-148, to provide useful and comparable consumer information to employees on the cost of their health care coverage. Notice 2011-28 solicited comments on various aspects of the reporting requirement. In response to comments, this notice supersedes Notice 2011-28 and makes the following changes to the guidance provided in Notice 2011-28:

Link http://www.irs.gov/pub/irs-drop/n-12-09.pdf