Final regulations: Minimum funding requirements, single-employer defined benefit plans

Final regulations: Minimum funding requirements

The Treasury Department and IRS today released for publication in the Federal Register final regulations (T.D. 9732) providing rules for determining minimum required contributions for single-employer defined benefit pension plans under section 430. The final regulations also address the excise tax imposed for failing to satisfy these minimum funding requirements under section 4971.


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The final regulations [PDF 477 KB] are effective September 9, 2015 (the date of their publication in the Federal Register) and generally provide rules for actuarial purposes.

Today’s release finalizes regulations proposed in 2008 under section 430 and 4971. As noted in the preamble, the final regulations are “generally similar to the proposed regulations, but a number of changes were made in response to comments received.” Also, the final regulations reflect changes made by legislation enacted after 2008.

In brief, these regulations made changes to the regulations under section 430 relating to elections with respect to a plan’s prefunding balance and funding standard carryover balance, relating to interest rates, and relating to benefit restrictions.

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