Retirement Benefits on IRS Agenda in Priority Guidance Plan

By John Iekel • November 14, 2017 • 0 Comments

Retirement benefits are on the agenda in the IRS’ recently released 2017-2018 Priority Guidance Plan. The plan lists projects that the IRS says it hopes to complete by June 30, 2018, and sets forth guidance priorities for the Department of the Treasury and the IRS based on public input and President Trump’s Executive Order of Feb. 24 concerning burden-reducing policies and reforms.

The IRS says that it solicited comments in developing the plan, that most of the projects listed in the plan do not involve issuing new regulations, and that it seeks to provide helpful guidance through:

  • revocations of final, temporary proposed regulations;

  • notices, revenue rulings and revenue procedures; and

  • amendments to existing regulations that bring about simplification and reduced burdens.

Retirement-related projects the IRS plans to undertake by June 30, 2018 include the following.


  • Application of the normal retirement age regulations to governmental plans under Section 401(a)

  • Updating regulations for the service credit and vesting under Section 411

  • Treatment of future interest credits and annuity conversion factors under a hybrid pension plan and adjustments under a variable annuity plan for purposes of satisfying qualification requirements

  • Church plans

  • Aggregation rules under Section 414(m)

  • Issues related to lifetime income from retirement plans and IRAs

  • Missing participants


  • IRAs under Sections 219, 408, 408A and 4973

  • The definition of a governmental plan under Section 414(d)

  • Reporting requirements under Section 6057

Final Regulations

  • Application of normal retirement age regulations under Section 409(a) governmental plans

  • Qualified nonelective contributions and qualified matching contributions

  • Updating the minimum present value requirements for pension plans

The plan also says that the IRS plans to issue a revenue procedure related to approval for funding method changes.