TAX NEWS - DECEMber 2009

2009-2010 Employee Plans Guidance Plan

IRS released the 2009-2010 Priority Guidance Plan, which contains 315 projects scheduled for completion from July 2009, through June 2010. This year's Plan contains 42 employee plan items, some of which are already completed. The
remaining items include:


I. Guidance:
- Group trusts
- International tax issues related to tax-favored retirement plans
- Lifetime income from defined contribution plans
- Certain annuity distributions from defined benefit pension plans
- 403(b) plan terminations
- Governmental plan status under Code §414(d)
- Procedures for ruling requests under Code §414(e) for church plans
- Eligible combined plans under Code §414(x), added by the Pension Protection Act of 2006 (PPA)
- ERISA §101(j) notice requirements applicable to single-employer plans subject to funding-based benefit limitations added by PPA
-Distributions from 457(b) plans for unforeseeable emergencies


II. Notices:
- Definition of readily tradable securities for ESOPs
- Certain retirement plan provisions of the Heroes Earnings Assistance and Relief Tax Act of 2008


III. Revenue Procedures:
- 403(b) prototype program
- Multiemployer plan amortization extension requests


IV. Proposed Regulations:
- Issues under hybrid plans
- Code §432 and excise taxes under §4971
- Certain reporting requirements for qualified plans


V. Final Regulations:
- ESOP diversification requirements
- Suspension or reduction of safe harbor nonelective contributions under Code §§401(k) and 401(m)
- Hybrid plans under Code §§411(a)(13) and 411(b)(5), as added by PPA
- Determination of minimum required contributions under Code §430, as added by PPA