Regulatory Agenda Shows IRS May have a Busy End to 2016

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By Kristen Ricaurte Knebel

May 19 —With the Internal Revenue Service expected to propose or finalize many retirement-related projects, the agency will have a lot on its plate during the second half of the year, according to the Treasury Department's spring regulatory agenda.

Some of the key proposed rules that are slated for release later this year include those on the Cadillac tax and the application of tax code Section 409A on nonqualified deferred compensation plans, according to the agenda, released May 18.

Although the effective date for the excise tax for high-cost health plans was delayed until 2020, employers that may be impacted by this tax would be happy to get this guidance as early as they can.

Final Rules Expected

The IRS also plans to issue final regulations on accrual rules for defined benefit plans, the determination of minimum required pension contributions and nondiscrimination relief for closed defined benefit plans, as well as finalize rules that modify the minimum present value requirements for defined benefit plan distributions.

Other expected final regulations include guidance on the notice to participants of consequences of failing to defer receipt of qualified retirement plan distributions that will include an expansion of the applicable election period and the period for notices.

The IRS also plans to issue final rules that would provide guidance on how to satisfy the reporting requirements related to deferred vested benefits under tax code Section 6057.

To contact the reporter on this story: Kristen Ricaurte Knebel in Washington at

To contact the editor responsible for this story: Jo-el J. Meyer at