Employers Have Until 2012 to Adopt EGTRRA-Approved Benefit Plans

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IRS will begin issuing opinion and advisory letters for preapproved defined benefit plans beginning tomorrow, and employers will have until April 2012 to sign and adopt thee plans, IRS says in Announcement 2010-20. With the guidance, IRS clears up uncertainty about the adoption deadline for preapproved benefit plans, says Richard Hochman, president and CEO at McKay Hochman Co. “We didn't know what the deadline was,” Hochman says. With fewer plans requiring employers' adoption, IRS had considered having an adoption period of less than two years for plans, he adds.