IRS Priority Guidance Plan Includes Retirement Items

The IRS has issued its 2023-2024 Priority Guidance Plan, in which it describes guidance projects in the current fiscal year. Many items in the plan have appeared in prior years’ Priority Guidance Plans. A number of the guidance items deal with retirement savings arrangements, including the following, which have been included in previous plans.

• Guidance relating to employee plans programs, including the pre-approved plan program and EPCRS
• Regulations and guidance relating to the 10 percent early distribution tax
• Comprehensive IRA regulations
• Final regulations on the application of the normal retirement age regulations under Internal Revenue Code Section (IRC Sec.) 401(a) for governmental plans (proposed regulations were issued in January 2016)
• Regulations on the timing of the use or allocation of forfeitures in qualified retirement plan (proposed regulations were issued in February 2023)
• Regulations and guidance updating electronic delivery rules for providing applicable notices and making participant elections
• Regulations relating to SECURE Act and SECURE 2.0 Act modifications to certain rules governing 401(k) plans
• Guidance on student loan payments and their interplay with qualified retirement plans and 403(b) plans
• Guidance on closed defined benefit plans and related matters (proposed regulations were issued January 2016)
• Guidance on missing participants, including uncashed checks
• Regulations on the exception to the unified plan rule for IRC Sec.413(e) multiple employer plans (proposed regulations were issued in March 2022)
• Regulations on the definition of "governmental plan"
• Regulations on the definition of “church plan”
• Final regulations updating minimum-present-value requirements for defined benefit pension plans (proposed regulations were issued in November 2016)
• Regulations on mortality tables to determine present value for single-employer defined benefit pension plans (proposed regulations were issued in April 2022)
• Final regulations for withholding on distributions when payments are made to a non-U.S. address (proposed regulations were issued in May 2019)
• Regulations relating to the IRC Sec. 6057 reporting requirements (proposed regulations were issued in June 2012)
• Guidance updating electronic filing requirements for employee plans to reflect changes made by the Taxpayer First Act

A few new or expanded items include

• Guidance implementing changes made by Division T of the Consolidated Appropriations Act, 2023, known as the SECURE 2.0 Act of 2022 (SECURE 2.0 Act), including guidance providing questions and answers on certain issues under the SECURE 2.0 Act.
• Final regulations and other guidance relating to modifications to §401(a)(9) made by the Division O of the Further Consolidated Appropriations Act, 2020, Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), and the SECURE 2.0 Act and addressing other issues under §401(a)(9). Proposed regulations were published on February 24, 2022.
• Final regulations setting forth the methodology for constructing the corporate bond yield curve that is used for minimum funding purposes for certain defined benefit pension plans. Proposed regulations were published on June 23, 2023.