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Retirement Plans Newsletter

BULLETIN
October 15, 2024

 

[Official Guidance]

Text of IRS Notice 2024-77: Guidance Under Sections 414(aa) and 402(c)(12) of the Internal Revenue Code with Respect to Inadvertent Benefit Overpayments (PDF)

Q-1. How is an 'inadvertent benefit overpayment' defined for purposes of sections 414(aa) and 402(c)(12) and this notice? ... 

Q-2. Does section 414(aa)(1)(A) affect the requirement in section 6.06 of Rev. Proc. 2021-30 that an overpayment be corrected through corrective payments? ...

Q-3. Does section 414(aa)(1) prohibit a plan sponsor from seeking recoupment of inadvertent benefit overpayments from overpayment recipients? ...

Q-4. Under what circumstances may an individual who rolls over an inadvertent benefit overpayment to an eligible retirement plan retain the overpayment in tax-favored status?

Q-5. What is the treatment under sections 414(aa) and 402(c)(12) for inadvertent benefit overpayments resulting from a section 436 failure?

Q-6. What is the treatment under sections 414(aa) and 402(c)(12) for inadvertent benefit overpayments resulting from section 401(a)(17) or 415 failures?

Q-7. May a plan sponsor amend a plan to increase past benefit payments to affected participants and beneficiaries, in order to adjust for prior inadvertent benefit overpayments pursuant to section 414(aa)(1)(B), in a manner that results in a violation of section 401(a)(17), 415, or 436 for a past year? ... 

Q-8. Are there any provisions of Rev. Proc. 2021-30 that are modified or are no longer applicable with respect to an inadvertent benefit overpayment to which section 414(aa) or 402(c)(12) applies?  MORE >>

Internal Revenue Service [IRS]

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BenefitsLink® Retirement Plans Newsletter, ISSN no. 1536-9587.

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