More retirement-related regulatory news for plan sponsors, including links to detailed information.
Notice extends temporary nondiscrimination relief for frozen DB plans
The Internal Revenue Service (IRS) released Notice 2018-69, which extends temporary nondiscrimination relief for closed (frozen) defined benefit (DB) plans through 2019. Proposed regulations relating to nondiscrimination requirements for closed plans were published in the Federal Register on January 29, 2016, and the IRS released many comments on the proposed regulations. The IRS and the Treasury Department expect that the final regulations will include a number of significant changes in response to those comments. However, it is anticipated that the final regulations will not be published in time for plan sponsors to make plan design decisions based on the final regulations before expiration of the relief provided under Notice 2014-5 (as last extended by Notice 2017-45). Accordingly, the IRS and the Treasury Department have determined that it is appropriate to extend the relief provided under Notice 2014-5 for an additional year. The temporary nondiscrimination relief for closed plans provided in Notice 2014-5 is extended to plan years beginning before 2020 if the conditions of Notice 2014-5 are satisfied.
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Request for comments on calculation of unrelated business taxable income
The IRS released Notice 2018-67, requesting comments regarding the calculation of unrelated business taxable income under Section 512(a)(6) for exempt organizations with more than one unrelated trade or business.
Section 512(a)(6) requires an organization subject to the unrelated business income tax under Section 511, with more than one unrelated trade or business, to calculate unrelated business taxable income (UBTI) separately with respect to each trade or business. This notice discusses, and solicits comments regarding, various issues arising under Section 512(a)(6) and sets forth interim guidance and transition rules relating to that section.
For more information, click here.