IRS Tax Helper

The IRS and the Treasury Department intend to revise Reg. 1.401(a)-1(b)(4) to extend the date by which a governmental plan must comply with rules governing pension plan distributions upon attainment of normal retirement age.
As issued in 2007, these regulations were to be effective for governmental plan years beginning on or after January 1, 2009. As amended, the regulations will be effective for plan years beginning on or after January 1, 2011. Governmental plan sponsors may rely on this notice until the regulations are amended.
The 2007 regulations provide that a pension plan’s normal retirement age must not be earlier than the earliest age that is reasonably representative of the typical retirement age for the industry in which the covered workforce is employed.
Notice 2007-69, 2007- 2 CB 468, provided temporary relief for certain plans that may have to change their definition of normal retirement age, but the relief did not apply to governmental plans.