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Certain PPA Amendment Deadlines Extended Once Again

December 1, 2010

Originally extended at the end of 2009 to the last day of the first plan year beginning on or after January 1, 2010, the IRS published Notice 2010-77 on November 30, 2010, which has yet again extended the deadline for amending qualified defined benefit plans to comply with certain requirements added by the Pension Protection Act of 2006 ("PPA") to the last day of the first plan year beginning on or after January 1, 2011. Although the deadline for making these amendments has been extended, plans must continue to comply with these PPA requirements in operation. This extension applies to:

  • The deadline for amending certain single-employer defined benefit plans to meet the requirements of Section 436 of the Internal Revenue Code relating to funding-based limits on benefits and benefit accruals under single-employer plans; and
  • The deadline for amending cash balance and other applicable defined benefit plans to meet requirements relating to vesting and other special rules applicable to these plans.

It is important to note, however, that the deadlines to make other 2010 year-end amendments (e.g., amendments required by the Heroes Earnings Assistance and Relief Tax Act of 2008, the Worker, Retiree, and Employer Recovery Act of 2009, and other PPA amendments) were not extended, and plan sponsors should work quickly to review and amend their qualified plans before the end of the 2010 plan year. Please see our recent publication, "Qualified Plan Year-End Deadlines Are Lurking" for more information.

IRS Circular 230 Disclosure: As required by United States Treasury Regulations, you should be aware that this communication is not intended or written by the drafter to be used, and it cannot be used, by any recipient for the purpose of avoiding penalties that may be imposed on the recipient under United States federal tax laws.