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CCH® PENSION — 8/22/07

IRS, Treasury Department Issue 2007-08 Priority Guidance Plan

From Spencer's Benefits Reports: The Internal Revenue Service and the Department of the Treasury have released the 2007-2008 Priority Guidance Plan, which lists the tax issues that will be the subject of formal guidance during the upcoming year. The Priority Guidance Plan is developed based on consideration of suggestions from internal and external stakeholders, including taxpayers, tax practitioners, and industry groups. That input enables the IRS and the Treasury Department to focus legal resources on providing guidance on a broad range of issues that are important to taxpayers and tax administration.

The 2007-2008 Priority Guidance Plan lists 44 guidance projects relating to employee benefits, including 26 projects for retirement plans and 18 projects for health care benefits and executive compensation. Those projects include the following:

• guidance regarding the treatment of incidental health insurance benefits provided under a profit-sharing or stock bonus plan;
• proposed regulations under IRC Sec. 401(a)(9) on required minimum distribution rules for governmental plans, as directed by the Pension Protection Act of 2006 (PPA);
• guidance on the diversification requirements under IRC Sec. 401(a)(35), as added by the PPA;
• update of the model notice under IRC Sec. 402(f) relating to eligible rollover distributions;
• model plan provisions under IRC Sec. 403(b) for public school employees;
• final regulations on converting an IRA annuity to a Roth IRA annuity;
• proposed regulations under IRC Sec. 411(a)(11) to provide a description of the consequences of failing to defer, as directed by the PPA;
• proposed regulations on hybrid plans under IRC Secs. 411(a)(13) and 411(b)(5), as added by the PPA;
• guidance on automatic enrollment under IRC Secs. 414(w), 401(k)(13), and 401(m)(12), as added by the PPA;
• guidance on applicable interest and mortality assumptions under IRC Sec. 417(e), as amended by the PPA;
• proposed regulations on the measurement of assets and liabilities under IRC Sec. 430, as added by the PPA;
• final regulations on the funding of single-employer plans under Sec. 430;
• guidance on multiemployer plans under IRC Sec. 432, as added by the PPA;
• guidance on Form 5500 reporting as a result of the PPA;
• guidance on discrete issues on health savings accounts (HSAs);
• guidance under IRC Sec. 409A on funding restrictions applicable to nonqualified deferred compensation;
• guidance on welfare benefit funds and on deductions for contributions to a welfare benefit fund;
• guidance under IRC Sec. 419A on reserves for postretirement medical and life insurance benefits;
• final regulations under IRC Sec. 3121 regarding the definition of a salary reduction agreement;
• proposed regulation under IRC Sec. 4980B regarding calculation of the applicable premium for COBRA continuation of coverage; and
• final regulations under IRC Sec. 4980G on comparable HSA contributions.
  

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

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For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

Visit our News Library to read more news stories.