Pension Protection Act Blog

When Congress created new Code section 430 in Section 112 the Pension Protection Act in 2006, the impact of this new Code section was not immediately clear. The IRS has now provided a clear statement on their belief of the impact of new Code section 430 with the latest installment of proposed regulations for this Code section.

On Friday, the IRS issued 70 pages of proposed regulations to provide guidance on “the determination of minimum required contributions for purposes of the funding rules that apply to single employer defined benefit plans”. Specifically, these proposed regulations provide guidance on Code sections 430(a), 430(c), 430(e), and 430(j), along with proposed Excise Tax Regulations under Code section 4971. These proposed regulations are the fourth in a series of proposed regulations issued by the IRS to provide guidance regarding new Code section 430. (hat tip to BenefitsLink.com)

Proposed regulations issued on May 29, 2007, provided guidance on 430(h)(3), containing proposed 1.430(h)(3)-1, 1.430(h)(3)-2 - 17 pages.

Proposed regulations issued on August 31, 2007, provided guidance on 430(f), containing proposed 1.430(f)-1 - 35 pages.

Proposed regulations issued on December 31, 2007, provided guidance on 430(d), 430(g), 430(h)(2), and 430(i), containing 1.430(d)-1, 1.430(g)-1, 1.430(h)(2)-1, and 1.430(i)-1 - 19 pages.

Proposed regulations issued on April 11, 2008, providing guidance on 430(a), 430(c), 430(e), and 430(j), along with proposed Excise Tax Regulations under Code section 4971, containing 1.430(a)-1, 1.430(j)-1 and 54.4971(c)-1.

Notice 2008-29 on Alternative Disability Mortality Tables - Continued Reliance on Rev. Rul. 96-7, including guidance on Code section 430(h)(3) - 3 pages.

Notice 2008-21 on Transition Guidance for New Funding Rules and Funding-Related Benefit Limitations under PPA ‘06, including Code section 430 - 6 pages.

Rev. Rul. 2007-67 providing Section 417 - Definitions and Special Rules for Purposes of Minimum Survivor Annuity Requirements, including Code section 430(h)(3) - 9 pages.

Section 430 contained in Section 112 of the Pension Protection Act - 27 pages.

I’m still working my way through these new regulations, and will have a chart of effective dates tomorrow.

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