Tax News Update    Email this document    Print this document  

July 13, 2021
2021-1340

IRS provides guidance for multiemployer defined benefit plan sponsors that received PBGC financial assistance

The IRS has provided guidance (Notice 2021-38) under IRC Section 432(k) for sponsors of multiemployer defined benefit pension plans required to reinstate certain previously suspended benefits as a condition of receiving special financial assistance from the Pension Benefit Guaranty Corporation (PBGC). The notice also addresses (1) whether make-up payments for previously suspended benefits may be rolled over to another eligible retirement plan under IRC Section 402(c), and (2) how to apply the IRC Section 432(k)(2)(D)(i) rule, which does not take special financial assistance the plan receives into account in determining contributions required under IRC Section 431.

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement