COVID Tax Tip 2021-163: IRS help for employers wanting to rehire retirees or keep them after retirement age

IRS Tax Tips November 3, 2021
Useful Links: IRS.gov Help For Hurricane Victims News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts & Figures Around The Nation e-News Subscriptions The Newsroom Topics Multimedia Center Noticias en Español Radio PSAs Tax Scams/Consumer Alerts The Tax Gap Fact Sheets IRS Tax Tips Armed Forces Latest News IRS Resources Compliance & Enforcement News Contact Your Local IRS Office Filing Your Taxes Forms & Instructions Frequently Asked Questions Taxpayer Advocate Service Where to File IRS Social Media	Issue Number:    COVID Tax Tip 2021-163 IRS help for employers wanting to rehire retirees or keep them after retirement age The IRS reminds employers they generally won't jeopardize the tax status of their pension plans if they rehire retirees or permit distributions of retirement benefits to current employees who have reached age 59 ½ or the plan's normal retirement age. With the COVID-19 pandemic, many employers, including governmental employers, such as public school districts, are looking for ways to encourage retirees to return to the workforce to fill open positions and experienced employees to stay on the job. The IRS is providing help to these employers in new frequently asked questions designed to offer technical guidance to public and private employers who sponsor pension plans for their employees. The FAQs highlight existing ways that employers can meet their employment objectives and still comply with the plan qualification rules. Under the FAQs, an employer can generally choose to address unforeseen hiring needs by rehiring former employees, even if those employees have already retired and begun receiving pension benefit payments. If permitted under plan terms, those employees may continue receiving the benefits after they are rehired. Moreover, an employer can generally choose to make retirement distributions available to existing employees who have reached age 59 ½ or the plan's normal retirement age. This may assist in the retention of employees eligible for retirement. Share this tip on social media -- #IRSTaxTip: IRS help for employers wanting to rehire retirees or keep them after retirement age. https://go.usa.gov/xeY7j Back to Top         Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov. This message was distributed automatically from the IRS Tax Tips mailing list. Please Do Not Reply To This Message.

 

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