IRS Proposes New Nondiscrimination Requirements for Retirement Plans
On January 29, 2016, the IRS issued proposed rules that would modify the nondiscrimination requirements for retirement plans that provide additional benefits to a grandfathered group of employees following certain changes in the coverage of a defined benefit plan or a defined benefit plan formula.
The Internal Revenue Code provides generally that a retirement plan is a qualified plan only if the contributions or benefits provided under the plan do not discriminate in favor of highly compensated employees.
The proposed regulations would affect participants in, beneficiaries of, employers maintaining, and administrators of tax-qualified retirement plans.
Submit comments by April 28, 2016.
For more information, contact the U.S. Small Business Administration’s Dillon Taylor at 202.401.9787.
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