The IRS released the 2008-09 Priority Guidance List on September 10th. The Priority Guidance List is the annual list from the IRS which contains the list of projects and programs which the IRS intends to address during the during the 12-month period from July 1st each year through June 30th. For the 12-month period from July 1, 2008 through June 30, 2009, the IRS announced that they intend to address 314 programs and projects. Of those 314, only 32 relate to retirement benefits, and 25 relate to executive compensation, health care and other benefits and employment taxes. (hat tip to Taxprof Paul Caron of the Univ. of Cinti. College of Law)
Out of these 57 programs and projects (32 related to retirement benefits plus 25 related to exec comp, etc.), there are two new programs to look forward to. According to number 9 on the retirement benefit list, the IRS intends to finally open the long-awaited approval program for 403(b) prototype plan documents. I am a little disappointed that number 9 is limited to prototypes, and doesn’t state that the forthcoming revenue procedure will address both pre-approved 403(b) prototypes and 403(b) volume submitter plan documents. I hope I am wrong about this because my company provides both, and I had planned on filing both our 403(b) prototype plan documents and our 403(b) volume submitter plan documents with the IRS for opinion/advisory letters as soon as the program opens. Filing our 403(b) prototype plan documents for opinion letters is better than nothing but it would have been so much better to know we will be filing both our 403(b) prototypes and our 403(b) volume submitters for opinion/advisory letters.
The other program on the list is the long-awaited correction program for Code section 409A. This appears as number 11 on the exec comp list. With the impact that the Final 409A Regs are having on plan documents, it will be good to have a correction program in place.
There are a couple of other items worth notice. Guidance on church plans is coming this year. The list gives no additional details other than “guidance on church plans”. There will be guidance on retroactive plan amendments under Section 1107 of the Pension Protection Act. Section 1107 permitted plans to operate according to law changes made by PPA as required in 2006, 2007 and 2008 as long as the plan was amended to reflect those changes in 2009. And it looks to be another banner year for guidance affecting defined benefit plans and cash balance plans.
The list of projects and programs for retirement benefits is:
- 1. Guidance on group trusts under Rev. Ruls. 81-100 and 2004-67.
2. Notice on cumulative list of changes in plan qualification requirements.
3. Update on Employee Plans Compliance Resolution System (EPCRS). PUBLISHED 09/02/2008 in IRB 2008-35 as Rev. Proc. 2008-50 (released 08/14/2008).
4. Follow on guidance to Notice 2007-69 for governmental plans.
5. Final regulations under section 401(a)(9) on required minimum distribution rules for governmental plans, as directed by the Pension Protection Act of 2006. Proposed regulations were published on July 10, 2008.
6. Final regulations on diversification requirements under section 401(a)(35), as added by the Pension Protection Act of 2006. Proposed regulations were published on January 3, 2008.
7. Final regulations under section 402 of the treatment of incidental health insurance benefits provided under a profit-sharing or stock bonus plan. Proposed regulations were published on August 20, 2007.
8. Update of model notice under section 402(f) relating to eligible rollover distributions.
9. Revenue procedure on section 403(b) prototype plan documents.
10. Revenue ruling to obsolete section 403(b) Internal Revenue Bulletin guidance that is no longer applicable.
11. Guidance on pre-approved IRAs regarding recent law changes.
12. Guidance on special issues relating to rollovers from qualified retirement plans (other than from Roth IRAs or designated Roth accounts) to Roth IRAs.
13. Proposed regulations under section 411(a)(11) to provide a description of the consequences of failing to defer, as directed by the Pension Protection act of 2006.
14. Final regulations on hybrid plans under sections 411(a)(13) and 411(b)(5), as added by the Pension Protection Act of 2006. Proposed regulations were published on December 28, 2007.
15. Final regulations under section 411(b) on accrual rules for defined benefit plans. Proposed regulations were published on June 18, 2008.
16. Proposed regulations regarding the market rate of return limitation under section 411(b)(5).
17. Guidance on retroactive plan amendments under section 1107 of the Pension Protection Act of 2006.
18. Guidance on requirements for governmental plan status under section 414(d).
19. Guidance on church plans.
20. Notice on certain retirement plan provisions of the Heroes Earnings Assistance and Relief Tax Act of 2008.
21. Notice on section 903 of the Pension Protection Act of 2006 relating to eligible combined defined benefit plans and qualified cash or deferred arrangements.
22. Final regulations on automatic enrollment under sections 414(w), 401(k)(13) and 401(m)(12), as added by the Pension Protection Act of 2006. Proposed regulations were published on November 8, 2007.
23. Final regulations on the measurement of assets and liabilities under section 430, as added by the Pension Protection Act of 2006. Proposed regualtions were published December 31, 2007.
24. Final regulations on the determination of the minimum required contributions under section 430, as added by the Pension Protection Act of 206. Proposed regulations were published on April 15, 2008.
25. Notice on mortality tables for funding purposes for years 2009-2013.
26. Update of Rev. Proc. 2007-37 relating to plan-specific mortality tables under section 430(h)(3), as added by the Pension Protection Act of 2006.
27. Proposed regulations on funding improvement plans and rehabilitation plans for multiemployer plans under section 432 and related excise taxes under section 4971(g), as added by the Pension Protection Act of 2006.
28. Final regulations on determination of endangered or critical status for multiemployer plans under section 432, as added by the Pension Protection Act of 2006. Proposed regulations were published on March 18, 2008.
29. Notice expanding the availability of transition relief in Notice 2008-21 under section 436. WILL be published 9/22/2008 in IRB 2008-38 as Not. 2008-73 (released 09/03/2008).
30. Final regualtions on funding-based benefit limits under section 436, as added by the Pension Protection Act of 2006. Proposed regulations were published on August 31, 2007.
31. Final regulations under section 4980F with respect to retroactive effective dates. Proposed regulations were published on March 21, 2008.
32. Proposed regulations on annual reporting for qualified plans.
pension protection act, ppa, priority guidance, IRS, 403(b), ERISA
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