DB Provisions of the American Rescue Plan of 2021

American Society of Enrolled Actuaries [ASEA]

Tucked away in the American Rescue Plan of 2021 are changes to IRS Section 430 rules for DB single employer minimum funding valuations.  These changes include relief with respect to segment rates and changing the amortization period from 7 to 15 years for shortfall amortizations.  The provisions have different default and optional effective dates.  

We’ll discuss these changes, including employer elections, with respect to the effective dates, interplay with the AFTAP rules under IRC Section 436 and other plan document issues.

Learning Objectives:

• Apply the segment rate relief to Section 430 valuations.
• Calculate shortfall amortization bases and installments under the provisions of the American Rescue Act.
• Assist clients with effective date elections.

Speaker:  Karen Smith, MSPA, President, Nova 401(k) Associates

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