HATFA guidance issued

[tymesup]

Notice 2014-53

[Hojo]

Here's the link I posted in the other thread.....

http://www.irs.gov/p...rop/n-14-53.pdf

[My 2 cents]

1. So does this mean that I need to redo all of the elections to defer I sent to my clients (nearly all of which have been signed) because they did not include the EIN and plan number?

2. Am I correct in reading the notice to specify that the elections must be irrevocable but does not require them to include language to that effect?

3. It was our understanding that the HATFA change to 436(d)(2) would not be effective until plan years beginning after December 31, 2014. The following appears to be the only reference to 436(d)(2) in the notice. Is that supposed to that mean that it is NOT acceptable to pay lump sums for the rest of the current plan year in a plan sponsored by an employer in bankruptcy if the AFTAP determined using HATFA rates is at least 100%?

"Section 2003© of HATFA provides that the limitation on interest rates based on the corresponding 25-year average segment rates does not apply for purposes of § 436(d)(2) (relating to limitations on accelerated benefit distributions for a plan sponsored by an employer in bankruptcy)."

[Hojo]

No, this means that if you file an SB with MAP-21 rates for 2013, then that counts as your election and you don't have to do s***!

So business as usual for 2013, use HATFA for 2014. Done.

[My 2 cents]

No, this means that if you file an SB with MAP-21 rates for 2013, then that counts as your election and you don't have to do s***!

So business as usual for 2013, use HATFA for 2014. Done.

That is so if you file the SB with MAP-21 rates by 12/31/14. I will not expect to have to ask for a "corrected" election from any of my clients with calendar year plans. What about plans with later filing deadlines?

Also, does anybody have any thoughts about the absence of any mention of dates in the IRS guidance concerning the HATFA provision concerning paying accelerated benefits from a plan sponsored by an employer in bankruptcy?

[dmb]

Even though decisions on credit balances for the 2012 plan year may have been based on funded status at 1/1/13, it seems that HATFA does not allow changes in those elections, for example a plan that is now better funded at 1/1/13 under HATFA can not add some of the 2012 excess contribution that was not added under MAP-21. Does anyone see this differently? Thanks.