IRS issues guidance and regulations on deadlines for amending plans for certain changes in the law

Article Abstract:

The IRS has issued Revenue Procedure 97-41 to provide guidance on timely deadlines for amending qualified retirement plans and tax-sheltered annuities. For most 401(a) qualified plans, the deadline is the last day of the first plan year beginning on or after Jan 1, 1999 to retroactively adopt required plan amendments. The single deadline is an efficiency measure to aid plans in complying with GATT, the Uniformed Services Employment and Reemployment Act of 1994, and the Small Business Job Protection Act of 1996.

Limitation of actions (Taxation), Statute of limitations (Taxation)

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IRS issues temporary guidance on issuance of determination letters

Article Abstract:

Rev Proc 91-41 has been superseded by Rev Proc 91-66 for temporary guidelines on determination letters issued for the qualified status of pension, annuity and profit-sharing plans under s. 401 and s. 403(a). The new procedures change the eligibility requirements to allow other types of plans to qualify for submission. Additional plans include design-based safe harbors and nondiscrimination plans; plans including elective contributions under 401(k); and collective bargained plans.

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DOL issues proposed PTE for completed transaction involving frozen defined contribution plan

Article Abstract:

The Department of Labor (DOL) has issued a proposed prohibited transaction exemption for a transaction that had already occured, made by administrators of a defined contribution plan. A stock transfer within the plan was misvalued due to the timing of the actual transfer. Good faith on the part of plan administrators, who contacted the DOL immediately, was cited as one reason fro granting the exemption.

Defined contribution plans

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