Pension Protection Act of 2006
_____________________________________________________________________
On August 17, 2006, President Bush signed the Pension Protection Act of 2006. The legislation includes the permanent extension of the EGTRRA retirement savings provisions. The bill also includes reforms affecting hybrid plans, defined contribution plans and nonqualified deferred compensation.
See the
2006 Pension Law Changes for more information.
IRS Releases Final 401(k) Regulations
_____________________________________________________________________
The Internal Revenue Service has issued final regulations regarding cash or
deferred arrangements under Sections 401(k) and 401(m) of the
Internal Revenue Code. The purpose of these regulations is
to incorporate recent statutory changes imposed by GUST and the
Economic Growth and Tax Relief and Reconciliation Act 2001("EGTRRA")
in addition to other regulatory guidance. The IRS requires
that all affected plans be amended to reflect these regulations
by the last day of the plan year beginning in 2006 (i.e.,
December 31, 2006 for calendar year plans). Among the topics
covered by the regulations are nondiscrimination testing,
hardship distributions, automatic enrollment, and prefunding of
contributions.
See the Summary of Key Changes
or
Internal Revenue Bulletin 2005-5 for more information.
