News & Information
CCH® PENSION AND BENEFITS — 5/05/08
IRS updates 2007-2008 Priority Guidance Plan
The Treasury Department and IRS have issued the first periodic update to the 2007-2008 Priority Guidance Plan, which details the guidance action items for the current fiscal year, as well as regularly scheduled guidance.
Retirement plan guidance
The action items for 2007-2008 affecting retirement plans that are still outstanding include the following:
- Guidance regarding the treatment of incidental health insurance benefits provided under a profit-sharing or stock bonus plan.
- Update of Employee Plans Compliance Resolution System (EPCRS).
- Proposed regulations under Code Sec. 401(a) (9) on required minimum distribution rules for governmental plans, as directed by the Pension Protection Act of 2006 (PPA; P.L. 109-280).
- Update of the model notice under Code Sec. 402(f) relating to eligible rollover distributions.
- Final regulations on converting an IRA annuity to a Roth IRA annuity.
- Proposed regulations under Code Sec. 411(a) (11) to provide a description of the consequences of failing to defer, as directed by the PPA.
- Final regulations on the funding of single employer plans under Code Sec. 430 , as added by the PPA.
- Proposed regulations on accrual rules for defined benefit plans.
Health and executive comp guidance
Guidance planned for 2007-2008 in the health care and executive compensation areas to be completed includes:
- Proposed regulations under Code Sec. 409A on the calculation of income inclusion and additional taxes.
- Update of regulations under Code Sec. 423 regarding employee stock purchase plans.
- Guidance on discrete issues on Health Savings Accounts (HSAs).
- Notice regarding rollovers from an IRA to an HSA.