>A government announcement said that regulations will, among other things, address the application of defined benefit limits when an employee receives multiple benefit streams beginning at different ages and the treatment of compensation paid after an individual leaves his or her job.
>In addition to relating to section 415 limits on benefits and contributions under qualified retirement plans, the proposed regulations also apply to 403(b) and 457 plans, the government news release said.
“We believe it is important that members of the National Guard and Reserve not lose the opportunity to save for retirement while they are serving our country,” said Eric Solomon, Treasury’s Acting Deputy Assistant Secretary for Tax Policy, in the announcement.
>Plan administrators may rely on the proposed regulations immediately to allow service members to contribute to qualified retirement plans, regulators said. The proposed regulations will formally go into effect in years beginning in 2007.