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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.

Officials describe how a Section 414(x) plan would work, then ask for written comments about issues that commenters want the IRS to address in upcoming guidance.

The comments are due Oct. 15.

More information is available here.