"Importantly, the Notice was quick to point out that it does not provide any guidance with respect to the federal tax consequences of a lump sum risk-transferring program under the following Code sections ... [1] Code Sec. 401(a)(4) ... nondiscrimination rules; [2] Code Sec. 411 ... non-forfeiture and anti-cutback protections; [3] Code Sec. 415 ... benefit limits; [4] Code Sec. 417 ... spousal protections; [5] Code Sec. 436 ... benefit restrictions based on the plan's funding levels.... [If] you are in the process of providing a lump sum option that extends to individuals in pay status, [the authors] recommend a file memo to show that you reviewed Notice 2015-49 and that you fit within one of the [transition rule] exceptions ... or that you otherwise meet one of the long-standing exceptions under Reg. Section 1.401(a)(9)-6, Q&A-13(b)."

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