OMB Outlines IRS Regulatory Agenda

The Office of Information and Regulatory Affairs of the Office of Management and Budget has outlined the regulatory agenda of the IRS, and the status of the rules that are part of it. 

Proposed Rules

Reporting and Notice Requirements for Deferred Vested Benefits Under Section 6057. Would provide guidance on the requirement for plan administrators or employers to furnish an individual statement to participants who separate from service with a deferred vested benefit.

Spousal IRAs, SEPs and IRA Technical Changes. Will provide guidance relating to IRAs and will update the current IRA regulations to reflect statutory and regulatory changes.

Additional Rules Regarding Pension Plan Funding and Benefit Restrictions. Would provide additional guidance regarding the determination of plan assets and benefit liabilities for purposes of the funding requirements that apply to single employer defined benefit plans, the use of certain funding balances maintained for those plans, and the benefit restrictions for certain underfunded defined benefit pension plans.

Definition of Church Plan. Would update existing final regulations on the definition of a church plan under Code Section 414(e), including addressing certain of the requirements to be treated as a church plan under Section 414(e)(3)(A).

Application of Nondiscrimination Requirements, Backloading Limitations, Certain Plan Termination Rules, Benefit Limitations, and Top Heavy Rules to Statutory Hybrid Plans. Would provide guidance on the application of the nondiscrimination requirements, the backloading limitations, certain plan termination rules, the benefit limitations, and the top heavy rules to cash balance plans, pension equity plans and variable annuity plans that addresses particular characteristics of those types of plans.

Guidance on the Timing of the Use or Allocation of Forfeitures in Qualified Retirement Plans. Would provide rules describing when forfeitures may be used or allocated in a qualified retirement plan.

Withholding on Certain Retirement Plan Distributions Under Section 3405(a) and (b). These are final proposed regulations regarding withholding on certain retirement plan distributions under Section 3405(a) and (b).

Guidance on 401(a)(9) Required Minimum Distributions. Regulations to provide guidance on changes to the required minimum distribution rules (RMD) applicable to qualified retirement plans and individual retirement arrangements made by the SECURE Act and to clarify rules on determining the designated beneficiary for purposes of applying the RMD rules.

Final Rules

Regulations Under Section 401(a)(9) Updating Life Expectancy and Distribution Period Tables for Purposes of the Required Minimum Distribution Rules. Will update the life expectancy tables that apply for purposes of computing minimum required distributions from qualified retirement plans to more accurately reflect life expectancies based on the latest available empirical data.

Withholding on Certain Retirement Plan Distributions Under Sections 3405(a) and (b). These are final proposed regulations regarding withholding on certain retirement plan distributions under Sections 3405(a) and (b).