IRS Official Says Final Rules on Cash Balance Plans in Clearance Process

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Final regulations on cash balance plans and new proposed regulations giving details about issues such as the above-market interest crediting rate are in the clearance process, says James Holland, assistant director of employee plans, rulings and agreements in IRS's Tax Exempt and Government Entities Division. Assuming the final and proposed rules are issued in mid- to late October, he says, plan sponsors would then have only two weeks to make changes to their plans because of deadlines under the Pension Protection Act and ERISA notice requirements.