July 6, 1992
TO: PENSION MEMBERS NO. 17-92
RE: HOUSE APPROVES TAX BILL INCLUDING PENSION SIMPLIFICATION
PROVISIONS
__________________________________________________________
The House of Representatives passed a tax bill, H.R. 11, on
July 2, 1992 which includes certain of the pension simplification
provisions that were included in H.R. 4210, the tax legislation
vetoed by the President earlier this year. (See Institute
Memorandum to Pension Members No. 5-92, dated March 27, 1992.)
The pension simplification provisions of H.R. 11 include
the liberalization of the rollover rules, the requirement that
plans permit participants to transfer distributions eligible for
rollover treatment directly into an eligible transferee plan,
authorization for the IRS to define the duties of master and
prototype plan sponsors, and simplification of the
nondiscrimination tests under sections 401(k) and 401(m) of the
Code. However, H.R. 11 does not include the modifications of the
rules concerning salary reduction simplified employee pensions
(SARSEPs) that were included in H.R. 4210.
Anyone who would like a copy of the bill language or the
committee report with respect to any provision should call the
undersigned at (202) 955-3516.
We will keep you informed of further developments.
Kathy D. Ireland
Associate Counsel - Pension