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April 11, 2008 at 06:48 PM
The Internal Revenue Service continues to move ahead with implementing the minimum pension contribution provisions of the Pension Protection Act of 2006.
The IRS has included a draft of proposed regulations for single-employer defined benefit plans in a notice of proposed rulemaking posted on the Web site of its parent, the U.S. Treasury Department.
If a plan meets its funding target for the year, the employer would not have to make any payments.
If the plan turned out to be underfunded, the employer could make up the difference with installments paid over a 7-year period, officials write in the notice.
Officials have assumed in writing the proposed regulations that the installments will be determined assuming that the installments are paid on the valuation date for each plan year and using interest rates defined in another section of the regulations.
