Wednesday, March 21, 2012

IRS Turns to 409A to Analyze Pension Retirement Tax Issues

A multiemployer pension plan, in an effort to permit employees to “retire” under an early retirement benefit before that benefit was eliminated, proposed to let eligible participants “retire” and then immediately return to work. In a private letter ruling, the IRS concluded these employees were not legitimately retired. In analyzing “retirement” for qualified pension plan purposes the IRS looked at Section 409A and other sources.

IRS Private Letter Ruling HERE

Article HERE