Regulatory and Legislative

Applicability of Certain Aspects of RMD Regulations Delayed to 2026

The Internal Revenue Service (IRS) released Announcement 2025-2, delaying the anticipated applicability date for future final regulations relating to required minimum distributions (RMDs) under section 401(a)(9) of the Internal Revenue Code. The Treasury Department and the IRS have indicated that certain portions of these future final regulations, that were originally intended to apply as January 1, 2025, will apply no earlier than the 2026 distribution calendar year. This decision comes in response to concerns raised about the feasibility of implementing the new regulations in a timely manner.

The announcement specifies that the provisions of the future final regulations amending Sections 1.401(a)(9)-4, 1.401(a)(9)-5, and 1.401(a)(9)-6, which will be issued pursuant to the 2024 proposed RMD regulations, are anticipated to apply beginning in the 2026 distribution calendar year. Until the new regulations take effect, taxpayers must apply a reasonable, good-faith interpretation of the statutory provisions underlying the amendments.

Fiduciary Issues IRA IRS IRS Guidance Defined Benefit Plan Defined Contribution Plan

Regulatory and Legislative

Proposal Restricting Use of Private Placement Life Insurance Introduced

Senate Finance Committee Chair Ron Wyden (D-OR) has released draft legislation titled Protecting Proper Life Insurance from Abuse Act.

Regulatory and Legislative

Prime Interest Rate Decreased to 7.5 Percent

Effective December 18, 2024, the prime interest rate decreased to 7.50 percent.

Regulatory and Legislative

PBGC Updates Tables for Certain 2025 Valuations

The Pension Benefit Guaranty Corporation has released a final rule updating the table for determining expected retirement ages for participants in pension plans undergoing distress or involuntary termination to reflect valuation dates falling in 2025.