ICI Submits Recommendations for Priority Treasury, IRS Guidance

Rollovers By Non-Spouse Beneficiaries (§ 829)

• Effective for distributions after December 31, 2006

• Confirm that plan not required to offer

• Withholding requirements

• Form 1099 reporting; recommend no new coding

• Update Section 402(f) notice

Distributions from IRAs to Qualifying Charities (§ 1201)

• Effective for 2006 and 2007 taxable years only

• Confirm IRA custodian/trustee can rely on IRA owner

• Form 1099 reporting; recommend no special coding

• IRAs that hold both SEP/SIMPLE contributions and other contributions

Withdrawals by Reservists (§ 827)

• Effective for distributions after September 11, 2001 and before December 31, 2007

• Confirm plan and IRA provider can rely on reservists for eligibility

• Confirm plan not required to offer distribution

• Reporting requirements of re-contribution to IRA

Faster Vesting of Non-elective Contributions (§ 904)

• Effective for plan years beginning after December 31, 2006

• Contributions made in 2007 attributable to 2006 service or compensation

• Model amendment desirable

Notice of Right to Diversify Employer Stock (§ 507)

• Effective for plan years beginning after December 31, 2006

• First notices due beginning of December 2006; Treasury not required to issue model notice until mid-February 2007

• Application of 30 day notice requirement to new employees

Gap period earnings (§ 902(e))

• Burdensome to calculate gap period for all purposes in 2006 and 2007, but not for 2008 (except for 402(g) excess deferrals); recommend Treasury allow plans to use new rules in 2006 and 2007.

Guidance on amendment dates for Prototype IRAs and LRMs