| |||
News EssentialsThe Newsroom TopicsIRS Resources | Issue Number: IR-2020-251Inside This IssueIRS provides guidance on certain distributions from terminating 403(b) plans WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued guidance for employers and employees with terminating 403(b) plans that fund benefits through 403(b)(7) custodial accounts. The guidance reflects changes provided in the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act). Revenue Ruling 2020-23 provides that 403(b) retirement plans funded through individual or group 403(b)(7) custodial accounts can be terminated through the distribution of individual custodial accounts. If a distributed custodial account continues to comply with certain requirements, no portion of the distributed custodial account is includible in gross income until amounts are actually paid out of the account to a participant or beneficiary. Notice 2020-80 requests comments on the application of annuity and spousal rights provisions related to distributions in certain plans described in Revenue Ruling 2020-23. Thank you for subscribing to the IRS Newswire, an IRS e-mail service. If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe. This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message. |
Thursday, November 5, 2020
IR-2020-251: IRS provides guidance on certain distributions from terminating 403(b) plans
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment