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IRS Extends Relief for Closed Defined Benefit Plans

08/27/2018

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As anticipated by plan sponsors, the IRS has extended relief for plan years that begin before 2020, if certain conditions are met. Previously the IRS granted temporary relief to qualified retirement plans seeking to comply with the rules that require the plans do not discriminate in favor of highly compensated employees. 

Plans must demonstrate compliance in one of three ways. 

1. They can be primarily defined benefit in character
2. They can consist of broadly available separate plans
3. They can meet the minimum aggregate allocation gateway. 

For more detail, reference Notice 2018-69 or contact us for help with this complex topic. 

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LBMC tax tips are provided as an informational and educational service for clients and friends of the firm. The communication is high-level and should not be considered as legal or tax advice to take any specific action. Individuals should consult with their personal tax or legal advisors before making any tax or legal-related decisions. In addition, the information and data presented are based on sources believed to be reliable, but we do not guarantee their accuracy or completeness. The information is current as of the date indicated and is subject to change without notice.