New Pension Relief Law
On December 23, 2008, President Bush signed the “Worker, Retiree, and Employer Recovery Act of 2008” (Public Law 110-458) into law. This law provides some pension plan relief from the required minimum distribution provisions for the 2009 year only (the IRS has taken the position that no relief will be available for minimum distribution requirements for 2008). The required minimum distribution requirement applies to retirement plan participants, aged 70½ or older, and mandates that these individuals take a minimum distribution from their plans. Because of the reduction in account values, this news should be welcome.
In addition, the law provides funding relief to employers sponsoring defined benefit plans, also deemed necessary given the current world financial situation.
Finally, the act makes several technical corrections to the Pension Protection Act of 2006.
The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations.
As required by U.S. Treasury rules, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this Benefit Beat is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any penalties that may be imposed by the Internal Revenue Service.