Academic journal article Journal of Accountancy

New Rules for Tax-Exempt and Government Benefit Plans

Academic journal article Journal of Accountancy

New Rules for Tax-Exempt and Government Benefit Plans

Article excerpt

The Internal Revenue Service issued new nondiscrimination rules to qualified employee benefit plans maintained by governments and tax-exempt organizations under Internal Revenue Code section 501 (a). Notice 96-64 is a result of modifications made in the Small Business Job Protection Act of 1996.

The IRS said that because information in notice nos. 92-36 and 89-23 and announcement 95-48 was no longer adequate, practitioners should look to 96-64 for guidance. For government plans, the new rules

* Extend the date for applying certain regulations until plan years beginning on or after October 1, 1997.

* Clarify certain nondiscrimination and minimum coverage rules and provide a special option for applying nondiscrimination tests for years prior to 1999.

* Allow governments until plan year 2001 to apply for a reasonable, good faith interpretation of existing law in determining which entitles must be aggregated.

For plans maintained by tax-exempt organizations, the new rules

* Also extend the date for applying certain regulations until the first plan year beginning on or after October 1, 1997. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.