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Compliance January 30, 2004
IRS Provides Acquisition Impacts on Nondiscrimination Contributions
January 30, 2004 (PLANSPONSOR.com) - If the C-suite
wants to know how certain acquisitions or dispositions are
going to affect nondiscriminatory contributions, plan
sponsors now have a resource at their disposal.
Reported by Eric Hazard
>Revenue Ruling 2004-11, issued by the Internal Revenue Service (IRS), provides a before and after acquisition and disposition example of a plan’s status in regards to nondiscriminatory contribution and benefits. In addition, the ruling speaks to implications during the transition period.
>In fact, this issue has so many nuances that the Service and the Department of Treasury are considering handing down addition guidance in relation to these provisions. As such, the two are soliciting comments on what guidance is needed on the appropriate resolution of the issues.
A copy of Revenue Ruling 2004-11 can be found at http://www.irs.gov/pub/irs-drop/rr-04-11.pdf .