ere the situation demanded it. Unclear regulatory and informal guidance has resulted in many plans carrying forward forfeitures that are even older than two years. The transition relief offered for pre-2024 incurred forfeitures is welcome, but many sponsors may need plan amendments and revised administrative procedures to use or allocate their “legacy forfeitures” in order to take advantage of it.Defined Benefit (DB) Plans. For defined benefit pension plans, the proposed regulations correct an inconsistency or conflict in the Treasury Regulations. The current general regulation on the use of forfeitures requires that pension plan forfeitures be used as soon as possible to reduce the employer’s contributions under the plan, but may not be used to increase employee pension benefits. Further, it provides that a pension plan may “anticipate the effect of forfeitures in determining the costs under the plan.” By contrast, the current minimum funding standards for defined benefit plans under Internal Revenue Code Sections 430, 431, and 433 do not provide that forfeitures may directly offset required employer plan contributions; rather those Sections instead require the use of reasonable actuarial assumptions to determine the effect of expected forfeitures on plan liabilities. The new proposed regulation deletes the provision allowing a direct reduction of employer pension plan contributions by the amount of forfeitures. It now simply states that the effect of forfeitures may be anticipated in actuarially determining the costs under the plan under the Code’s defined benefit plan funding standards.

For defined benefit plans, funding is determined using the value of plan assets. If the third party loans are overstated or are deemed to be uncollectable they may trigger excise taxes for failure to satisfy minimum funding requirements under Internal Revenue Code Section 412 and/or failure to limit the form of payment options under Internal Revenue Code Section 430 due to plan underfunding.The Snapshot directs examiners to be alert for fraud.

Otherwise, the deadline is the last day of the plan year that begins in 2022. For a government plan, the deadline is the last day of the first plan year beginning on or after January 1, 2024.Extended Contribution Deadline for Single Employer Plans(CARES Act Section 3608) The CARES Act extends the due date of defined benefit plan minimum required contributions otherwise due in 2020 (pursuant to IRC § 430) to January 1, 2021. The amount of the contribution is increased by interest accruing from the original due date to the payment date at the effective interest rate for the plan for the plan year of the payment date.

For more coverage, see here.March 12, 2020: The IRS released clarifications to the 2019 Partner’s Instructions for Schedule K-1. The changes affect Code F IRC section 743(b) positive income adjustments, Code V IRC section 743(b) negative income adjustments, Code AA IRC section 704(c) information, and Code AH information.March 12, 2020: The IRS released Notice 2020-16, which provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under IRC section 417(e)(3), and the 24-month average segment rates under IRC section 430(h)(2). The notice also provides guidance as to the interest rate on 30-year Treasury securities under IRC section 417(e)(3)(A)(ii)(II) for plan years beginning before 2008 and the 30-year Treasury weighted average rate under IRC section 431(c)(6)(E)(ii)(I).March 13, 2020: The IRS released its weekly list of written determinations (e.g., Private Letter Rulings, Technical Advice Memorandums and Chief Counsel Advice).Special thanks to Emily Mussio in our Chicago office for this week’s roundup.

The safe harbor will be effective for transactions entered into on or after March 9, 2020, and provides rules that allow for prior transactions to qualify for similar treatment.February 19, 2020: The IRS published final regulations that correct TD 9885, the base erosion and anti-abuse regulations that were published on December 6, 2019. The amendments restructure the sentence addressing “a principal purpose” of avoiding a base erosion payment; the amendments also correct Treas. Reg. § 1.6038A-2(g) to say that returns must be included “on or after” June 7, 2021.February 19, 2020: The IRS issued a notice providing guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under IRC section 417(e)(3), and the 24-month average segment rates under IRC section 430(h)(2). The notice also provides guidance as to the interest rate on 30-year Treasury securities under IRC section 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate under IRC section 431(c)(6)(E)(ii)(I).February 19, 2020: The IRS issued a news release reporting that the J5 tax chiefs—leaders from five international tax organizations, including the IRS’ Criminal Investigations unit—met in Sydney this past week to review the J5’s progress in their fight against transnational crime.

Qualified Retirement Plans April 15 Excess Deferrals Deadline for plan to distribute prior year’s deferrals in excess of Internal Revenue Code (IRC) §402(g) annual dollar limit and related earnings. 401(k) Plans April 15 (105 days after the end of the plan year) PBGC 4010 Filing Deadline for contributing sponsors (and each controlled group member) to file PBGC Form 4010 if: 1) Any single-employer plan in the contributing sponsor’s controlled group had a prior year AFTAP of less than 80%; 2) Any single-employer plan in the contributing sponsor’s controlled group fails to make a required installment or other required payments to a plan, and as a result, a lien is imposed pursuant to ERISA section 303(k)(1) or IRC section 430(k)(1); or 3) The IRS has granted funding waivers of more than $1 million to any single-employer plan in the contributing sponsor’s controlled group and any portion of such waiver is still outstanding. Defined Benefit Plans April 29 (no later than 120 days after the end of the plan year) Annual Funding Notice Deadline for the plan administrator to provide a plan funding notice to the PBGC, to each plan participant and beneficiary and to each employer that has an obligation to contribute under the plan.

om its original deadline of January 31.Applicable Large EmployersApril 1Age 70 ½ Distribution RequirementsDeadline for plan administrator to distribute prior year’s required minimum distribution for any terminated employee who reached age 70 ½ or older during the prior year.Qualified Retirement PlansApril 15Excess DeferralsDeadline for plan to distribute prior year’s deferrals in excess of Internal Revenue Code (IRC) §402(g) annual dollar limit and related earnings.401(k) PlansApril 15 (105 days after the end of the plan year)PBGC 4010 FilingDeadline for contributing sponsors (and each controlled group member) to file PBGC Form 4010 if: 1) Any single-employer plan in the contributing sponsor’s controlled group had a prior year AFTAP of less than 80%; 2) Any single-employer plan in the contributing sponsor’s controlled group fails to make a required installment or other required payments to a plan, and as a result, a lien is imposed pursuant to ERISA section 303(k)(1) or IRC section 430(k)(1); or 3) The IRS has granted funding waivers of more than $1 million to any single-employer plan in the contributing sponsor’s controlled group and any portion of such waiver is still outstanding.Defined Benefit PlansApril 29 (no later than 120 days after the end of the plan year)Annual Funding NoticeDeadline for the plan administrator to provide a plan funding notice to the PBGC, to each plan participant and beneficiary and to each employer that has an obligation to contribute under the plan.Defined Benefit Plans*Qualified Retirement Plans include all defined benefit and defined contribution plans that are intended to satisfy Code§401(a).

overage under the ALE’s sponsored plan.Applicable Large EmployersApril 1Age 70 ½ Distribution RequirementsDeadline for plan administrator to distribute prior year’s required minimum distribution for any terminated employee who reached age 70 ½ or older during the prior year.Qualified Retirement PlansApril 15Excess DeferralsDeadline for plan to distribute prior year’s deferrals in excess of Internal Revenue Code (IRC) §402(g) annual dollar limit and related earnings.401(k) PlansApril 15 (105 days after the end of the plan year)PBGC 4010 FilingDeadline for contributing sponsors (and each controlled group member) to file PBGC Form 4010 if: 1) Any single-employer plan in the contributing sponsor’s controlled group had a prior year AFTAP of less than 80%; 2) Any single-employer plan in the contributing sponsor’s controlled group fails to make a required installment or other required payments to a plan, and as a result, a lien is imposed pursuant to ERISA section 303(k)(1) or IRC section 430(k)(1); or 3) The IRS has granted funding waivers of more than $1 million to any single-employer plan in the contributing sponsor’s controlled group and any portion of such waiver is still outstanding.Defined Benefit PlansApril 29 (no later than 120 days after the end of the plan year)Annual Funding NoticeDeadline for the plan administrator to provide a plan funding notice to the PBGC, to each plan participant and beneficiary and to each employer that has an obligation to contribute under the plan.Defined Benefit PlansMay 14 (within 45 days after the close of the first quarter of plan year)Benefit Statements for Participant-Directed PlansDeadline for plan administrator to send benefit statement for the first quarter of the plan year to participants in participant-directed defined contribution plans.Defined Contribution Plans that allow participants to direct investmentsQuarterly Fee DisclosureDeadline for plan administrator to disclose fees and administrative expenses deducted

© 2015 King & SpaldingDeadlineItemActionAffected PlansApril 1Age 70 ½ Distribution RequirementsDeadline for plan administrator to distribute prior year's required minimum distribution for any terminated employee who reached age 70 ½ or older during the prior year.Qualified Retirement Plans*April 15Excess DeferralsDeadline for plan to distribute prior year's deferrals in excess of Internal Revenue Code (IRC) §402(g) annual dollar limit and related earnings. 401(k) PlansApril 15 (105 days after the end of the plan year)PBGC 4010 FilingDeadline for contributing sponsors (and each controlled group member) to file PBGC Form 4010 if: 1) Any single-employer plan in the contributing sponsor's controlled group had a prior year AFTAP of less than 80%; 2) Any single-employer plan in the contributing sponsor's controlled group fails to make a required installment or other required payments to a plan, and as a result, a lien is imposed pursuant to ERISA section 303(k)(1) or IRC section 430(k)(1); or 3) The IRS has granted funding waivers of more than $1 million to any single-employer plan in the contributing sponsor's controlled group and any portion of such waiver is still outstanding.Defined Benefit PlansApril 30 (no later than 120 days after the end of the plan year)Annual Funding NoticeDeadline for the plan administrator to provide a plan funding notice to the PBGC, to each plan participant and beneficiary and to each employer that has an obligation to contribute under the plan.Defined Benefit PlansMay 14 (within 45 days after the close of the first quarter of plan year)Benefit Statements for Participant-Directed PlansDeadline for plan administrator to send benefit statement for the first quarter of the plan year to participants in participant-directed defined contribution plans.Defined Contribution Plans that allow participants to direct investmentsQuarterly Fee DisclosureDeadline for plan administrator to disclose fees and administrative expenses deducted

or your employee benefit plans.DeadlineItemActionAffected PlansApril 1Age 70 ½ Distribution RequirementsDeadline for plan administrator to distribute prior year's required minimum distribution for any terminated employee who reached age 70 ½ or older during the prior year.Qualified Retirement Plans*April 15Excess DeferralsDeadline for plan to distribute prior year's deferrals in excess of Internal Revenue Code (IRC) §402(g) annual dollar limit and related earnings. 401(k) PlansApril 15 (105 days after the end of the plan year)PBGC 4010 FilingDeadline for contributing sponsors (and each controlled group member) to file PBGC Form 4010 if: 1) Any single-employer plan in the contributing sponsor's controlled group had a prior year AFTAP of less than 80%; 2) Any single-employer plan in the contributing sponsor's controlled group fails to make a required installment or other required payments to a plan, and as a result, a lien is imposed pursuant to ERISA section 303(k)(1) or IRC section 430(k)(1); or 3) The IRS has granted funding waivers of more than $1 million to any single-employer plan in the contributing sponsor's controlled group and any portion of such waiver is still outstanding.Defined Benefit PlansApril 30 (no later than 120 days after the end of the plan year)Annual Funding NoticeDeadline for the plan administrator to provide a plan funding notice to the PBGC, to each plan participant and beneficiary and to each employer that has an obligation to contribute under the plan.Defined Benefit PlansMay 14 (within 45 days after the close of the first quarter of plan year)Benefit Statements for Participant-Directed PlansDeadline for plan administrator to send benefit statement for the first quarter of the plan year to participants in participant-directed defined contribution plans.Defined Contribution Plans that allow participants to direct investmentsQuarterly Fee DisclosureDeadline for plan administrator to disclose fees and administrative expenses deducted