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IRS: Help Us With 414(x) Rules

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The Internal Revenue Service wants advice about how it should implement a new law that will let employers offer defined benefit pension plans and defined contribution plans on a combined basis.

The Internal Revenue Service discusses the new, combined Section 414(x) plans in IRS Notice 2009-71.

Internal Revenue Code Section 414(x) was added to the code by Section 903(a) of the Pension Protection Act of 2006.

“An eligible combined plan provides a vehicle through which an employer can maintain both a defined contribution plan and a defined benefit plan on a combined basis, thus reducing the administrative burdens and costs of maintaining separate plans,” officials write in the notice.