TaxNewsFlash-Exempt Organizations

July 9, 2008
No. 2008-63

PRINTABLE VERSION

Proposed Minimum Distribution Rules by Governmental Plans Would Allow for a Reasonable Good Faith Interpretation

The Treasury Department and IRS today released for publication in the Federal Register proposed regulations (REG-142040-07) that permit a governmental plan to comply with required minimum distribution rules by using a reasonable and good faith interpretation of section 401(a)(9).

For an electronic version of the proposed regulations (nine pages): REG-142040-07

Summary

The proposed regulations would treat a governmental plan as having complied with the rules of section 401(a)(9) if it applies a reasonable and good faith interpretation of section 401(a)(9).

The same rule would apply to an eligible 457(b) plan maintained by a government.

In addition, the rule would apply to a section 403(b) contract that is part of a governmental plan.

Lastly, the proposed regulations would make conforming amendments to existing regulations.

Request for Comments

Comments and requests for a public hearing must be received within 90 days after these proposed regulations appear in the Federal Register—which is scheduled for Thursday, July 10, 2008.

For more information, contact Rick Speizman, National Partner-In-Charge, KPMG’s Exempt Organizations Tax Practice (ExoTax), at (202) 533-3084 or rspeizma@kpmg.com

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