January 7, 2010

Extension of Deadline to Adopt Certain Retirement Plan Amendments

The Pension Protection Act of 2006 (“PPA”, Public Law 109-280) as subsequently amended by the Worker, Retiree, and Employer Recovery Act of 2008 (“WRERA”, Public Law 110-458), require several changes to qualified plans.  Many of these changes were required to have been made by December 31, 2009 for calendar year plans. 

In IRS Notice 2009-97, the amendment date for certain provisions has been extended to the last day of the first plan year beginning on or after January 1, 2010 (for a calendar year plan, this means December 31, 2010).  The limited provisions to which this extension applies is as follows:

  • Certain funding limits to defined benefit plans;
  • Rules relating to vesting and certain other matters for cash balance plans and other defined benefit plans; and
  • Rules relating to investment diversification for defined contribution plans that invest in employer securities.

Generally, the reason for this delay relates to the fact that additional guidance is expected from the IRS on these issues.


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


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