Notice 2012-70 - Extended period for plans to adopt interim amendment under section 436 

November 23:   The IRS issued Notice 2012-70 that extends certain relief for defined benefit plans as provided previously by Notice 2011-96.

Notice 2011-96, issued in November 2011, provided (1) a sample plan amendment that plan sponsors may adopt to satisfy section 436 regarding limitations on the accrual and payment of benefits under certain underfunded single employer defined benefit plans; and (2) an extended deadline for a plan amendment to satisfy section 436 and the period during which an amendment was eligible for relief from the anti-cutback requirements of section 411(d)(6). See
TaxNewsFlash-United States: IRS provides sample plan amendment for use by underfunded single employer defined benefit plans.


Notice 2012-70 [PDF 22 KB] in general extends the relief provided in Notice 2011-96 for a plan to adopt an interim amendment for section 436 to the latest of:


  • The last day of the first plan year that begins on or after January 1, 2013
  • The last day of the plan year for which section 436 is first effective for the plan, or
  • The due date (including extensions) of the employer’s tax return for the tax year that contains the first day of the plan year for which section 436 is first effective for the plan

Notice 2012-70 also provides that a plan amendment adopted with respect to section 436 that eliminates or reduces a section 411(d)(6) protected benefit does not cause the plan to fail to meet the anti-cutback requirements if the amendment is adopted by the appropriate deadline and the elimination or reduction is made only to the extent necessary to enable the plan to meet the requirements of section 436.




©2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

Subscribe

Current and future KPMG clients may subscribe to TaxNewsFlash email alerts.


Email your contact information.

Other TaxNewsFlash publications

TaxNewsFlash-United States by year