IRS updates benefit restriction relief for plans using year-end valuation dates

New IRS guidance offers PPA benefit restriction relief for small pension plans (100 or fewer participants in all controlled-group DB plans) that previously used year-end valuation dates. But sponsors of calendar-year plans and their actuaries must act quickly to take advantage of this relief -- they must complete 2008 valuations and certify plans' 2008 funded percentages before Oct. 1, 2008, to avoid a plan freeze and cessation of lump sums. Larger noncalendar plans that must switch from year-end to beginning-of-year valuation dates in 2008 apparently can also take advantage of the relief.  (Select News, 5 Sep 2008)

• Full text of Notice 2008-73 (IRS, 4 Sep 2008) (PDF)

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