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IRS issues guidance for defined benefit pension plans

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IRS issues guidance for defined benefit pension plans The IRS has recently issued the following guidance for defined benefit pension plans:

  • Final regulations (T.D. 9826) that prescribe mortality tables to be used by most defined benefit pension plans, and that update the requirements that a plan sponsor must meet to obtain IRS approval to use mortality tables specific to the plan for minimum funding purposes. The regulations apply to plan years beginning on or after Jan. 1, 2018.
  • Rev. Proc. 2017-55, which sets forth the procedure by which the sponsor of a defined benefit plan may request approval from the IRS for the use of plan-specific mortality tables. It is effective for all requests to use plan-specific mortality tables for plan years beginning on or after Jan. 1, 2018.
  • Rev. Proc. 2017-56, which provides for automatic approval for certain changes in funding methods used for single-employer defined benefit plans. It is effective for plans year commencing on or after Jan. 1, 2018. However, taxpayers may elect to apply the revenue procedure for earlier plan years.
  • Rev. Proc. 2017-57, which sets forth the procedure for obtaining IRS approval for a change in the funding method used for a defined benefit plan, and that also sets forth the procedure for obtaining IRS approval to revoke an existing election as to the interest rate used by a defined benefit plan for funding purposes. It is effective for requests for a change in funding method submitted on or after Jan. 1, 2018. However, taxpayers may elect to apply it for earlier requests.
  • Notice 2017-60, which provides updated mortality tables that are to be used for certain purposes by defined benefit pension plans in 2017 and 2018.

Contact: Eddie Adkins
Partner, Washington National Tax Office
T +1 202 521 1565

Jeffrey Martin
Partner, Washington National Tax Office
T +1 202 521 1526


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