The Treasury Department and the IRS today issued proposed regulations that would permit employers to simplify the number of payment options available to defined benefit plan participants. The proposals, which interpret a provision in the Economic Growth and Tax Relief Reconciliation Act of 2001, are based on suggestions received by the IRS.
"The regulations implement the directive from Congress to permit a plan to eliminate complex and burdensome benefits and subsidies as long as the effect on plan participants is insignificant," said Greg Jenner, acting treasury assistant secretary for tax policy.
The Treasury and IRS are seeking comments on the proposed regulations. Comments will be discussed at a public hearing June 24.