United States: IRS Issues Guidance On Distribution Allocation Rules And Updated 402(f) Notice – Prompt Action Needed
Introduction
The Internal Revenue Service (IRS) recently released guidance on the allocation of pre-tax and post-tax amounts distributed from a tax-qualified plan under Internal Revenue Code (Code) Section 401(a), a Code Section 403(b) plan or a governmental plan under Code Section 457(b) (collectively “Tax Favored Plans”). The new guidance is effective January 1, 2015; however, for distributions made on or after September 18, 2014, plan sponsors may apply a reasonable interpretation of the allocation rules […]