On August 8, 2006, the Internal Revenue Service (the “IRS”) released the final regulations under Section 411(d)(6) of the Internal Revenue Code (the “Code”).¹ The regulations provide guidance regarding the U.S. Supreme Court’s holding in Central Laborers’ Pension Fund v. Heinz, 541 U.S. 739 (2004) and the use of the utilization test for determining whether […]

Introduction On May 5, 2006, the Internal Revenue Service (the “IRS”) issued Revenue Procedure 2006–27 (the “Revenue Procedure”), the long-awaited update to the Employee Plans Compliance Resolution System (“EPCRS”). EPCRS is a program designed to encourage plan sponsors to correct certain qualification failures while allowing plans with “defects” to continue providing retirement benefits to participants […]

The Internal Revenue Service (the “IRS”)has issued final regulations (the “final regulations”) on the disclosure of relative values of optional forms of benefit distribution offered under defined benefit plans, money purchase pension plans, and certain other defined contribution plans subject to Section 401(a)(11) of the Internal Revenue Code (the “Code”). The final regulations generally retain […]

The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) added a new Section 402A to the Internal Revenue Code (the “Code”) effective January 1, 2006, which provides that 401(k) and 403(b) plans may permit participants to designate some or all of their elective deferrals as Roth contributions. These “designated Roth contributions,” unlike pre-tax […]

The Internal Revenue Service (“IRS”) has released the 2005 Cumulative List of Changes in Plan Qualification Requirements (the “2005 Cumulative List”). In general, the cumulative list identifies the provisions from statutes, regulations and other guidance that must be taken into account and that are required to be incorporated into the plan document when an application […]

In June and September of this year, both the Sixth Circuit Court of Appeals and the U.S. District Court for the Middle District of North Carolina issued decisions that counsel in favor of careful treatment of contested claims for a decedent’s benefit from an employee benefits plan. These two courts grappled with the following questions: […]

The Internal Revenue Service has announced the annual cost-of-living adjustments applicable to dollar limitations for pension plans and other items for Tax Year 2006. Several limitations are scheduled to increase at the beginning of 2006 under the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”). In addition, the increase in […]

In December 2003, the Internal Revenue Service (the “IRS”) issued regulations regarding the content of qualified joint and survivor annuity (“QJSA”) and qualified pre-retirement survivor annuity (“QPSA”) explanations. The regulations specify how the relative value of optional forms of distribution offered under defined benefit plans, money purchase pension plans, and certain other defined contribution plans […]

General On May 25, 2005, the Internal Revenue Service (the “IRS”) published comprehensive proposed regulations under Section 415 of the Internal Revenue Code (the “Code”) dealing with limitations on benefits and contributions for qualified plans. Code section 415 establishes specific limits on benefits under qualified defined benefit plans and on contributions and other additions under […]

On March 2, 2005, the Internal Revenue Service published proposed amendments to the regulations under sections 401(k) and (m) of the Internal Revenue Code (the “Code”). The proposed regulations provide guidance concerning the requirements that must be met for a contribution to be a designated Roth contribution under Code section 401(k). Background Section 402A, added […]

In a ruling anxiously awaited by many pension plans (particularly multiemployer plans), the Internal Revenue Service has issued a revenue procedure pursuant to Section 7805(b) of the Internal Revenue Code that significantly limits the retroactive application of the Supreme Court’s decision in Central Laborers’ Pension Fund v. Heinz, 124 S.Ct. 2230, decided on June 7, […]

The Employee Retirement Income Security Act of 1974, as amended (“ERISA”), imposes significant responsibilities upon the plan sponsor of an employee benefit plan. Given the gravity of these fiduciary obligations, many employers choose to create an administrative committee (a “Committee”) devoted to the proper management and control of the operation and administration of the retirement […]

On December 29, 2004, the Internal Revenue Service (IRS) issued long awaited final regulations governing cash or deferred arrangements (CODAs) under Code section 401(k) and matching contributions under Code section 401(m) that consolidate and simplify previous guidance, as well as reflect substantial legislative changes. This article will highlight significant provisions of the final regulations. Background […]

The Internal Revenue Service (the “IRS”) has issued proposed regulations under Section 403(b) of the Internal Revenue Code (the “Code”), as well as proposed and temporary regulations under related provisions of the Code. Code section 403(b) governs plans that involve retirement annuity contracts, mutual fund custodial accounts for employees of certain tax-exempt organizations and public […]

In October 2004, the Department of Labor issued Field Assistance Bulletin No. 2004–02 (the “Bulletin”) dealing with fiduciary duties with respect to missing participants in terminated defined contribution plans. The missing participant program of the Pension Benefit Guaranty Corporation applies to defined benefit plans. Background and Applicable Law The problem of missing participants is particularly […]