IRS Publishes Guidance on DB Funding Relief
December 20, 2010 (PLANSPONSOR.com) - The Internal Revenue Service has published guidance on the special rules on funding relief for single-employer defined benefit plans.
Noting that the guidance also applies to multiple employer defined benefit pension plans, in Notice 2011-3, the IRS offers guidance on those special rules on funding relief under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010.
The guidance contains a series of questions and answers on the following topics:
- General rules
- Installment acceleration amounts
- Excess compensation amounts
- Excess shareholder payment amounts
- Mergers and acquisitions
- Elections to use an alternative amortization schedule
- Notification to participants, beneficiaries, and the PBGC
- Eligible charity plans
- Reporting requirements
- Transition rules
Notice 2011-3 will be published in Internal Revenue Bulletin 2011-2 on Jan. 10, 2011. You can read the notice at http://www.irs.gov/pub/irs-drop/n-11-03.pdf
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