The IRS explanation states as follows: Read more
Tag Archives: IRS
Final Regulations Issued Under Code Section 403(b)
Distributions from a Pension Plan Under a Phased Retirement Program
(Posted on June 11, 2007 by Carol V. Calhoun)
The IRS has issued a copy of its long-awaited final regulations on the extent to which a pension plan can make distributions to an individual in the process of a phased retirement. A copy of the regulations can be seen by clicking here.
Final IRS Regulations Clarify Maximum Limits for Governmental Qualified Plans
(Posted on April 5, 2007 by Carol V. Calhoun)
On April 5, 2007, the IRS proposed new regulations under section 415 of the Internal Revenue Code (IRC), as amended. Section 415 limits the benefits that may be paid by defined benefit plans and contributions that may be made to defined contribution plans. While some of the provisions may be a restatement of the current rules or a codification of guidance issued over the years since the current regulations were adopted, other provisions may represent new interpretations that need to be studied carefully. Read more
New Mandatory Rollover Rules Will Apply to Government, Church Plans
(Posted on December 29, 2004 by Carol V. Calhoun)
Section 657 of the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”) amended Internal Revenue Code (“Code”) section 401(a)(31) to provide that a distribution from an “eligible plan” of more than $1,000 had to be directly rolled over to an individual retirement account unless a participant affirmatively elected another form of distribution (e.g., to receive the amount in cash). The term “eligible plan” was defined as follows:
a plan which provides that any nonforfeitable accrued benefit for which the present value (as determined under section 411(a)(11)) does not exceed $5,000 shall be immediately distributed to the participant.
The effective date of the provision was tied to the issuance of regulations by the Department of Labor. Thus, the question arose as to whether a plan that was not subject to either Department of Labor regulations or section 411 (a governmental plan or a nonelecting church plan) would be subject to the EGTRRA change. Read more
Form 1945, Statement Concerning Your Employment in a Job Not Covered by Social Security, Released
(Posted on December 20, 2004 by Carol V. Calhoun)
If a state or local government hires new employees not covered by social security after January 1, 2005, it must do the following: Read more
IRS Code & Subject Directory Available Online
(Posted on December 9, 2004 by Carol V. Calhoun)
The IRS has announced that the Directory of Practitioners on its site “is unavailable pending redesign considerations.” However, you can still get a copy of the latest monthly directory in PDF format by clicking here. Read more IRS links.
Notice 2004-79, 2004-49 IRB 898
(Posted on December 6, 2004 by Carol V. Calhoun)
Speech outline, “Federal Law Update, 2003-2004,” now available
(Posted on October 18, 2004 by Carol V. Calhoun)
The outline of the speech, originally presented on October 12, 2004, at the 18th Annual Convention of the National Council on Teacher Retirement, is available by clicking here. Read more
Private Letter Ruling 200345043
(Posted on August 13, 2003 by Carol V. Calhoun)
Milwaukee Journal Sentinal, “Pensions too rich for IRS?”
(Posted on January 15, 2002 by Carol V. Calhoun)
Carol Calhoun was quoted in the article in the January 15, 2002 issue of the Milwaukee Journal Sentinel, which questioned whether pension benefits provided for top Milwaukee government officials might violate IRS limits.