The Internal Revenue Service (IRS) has issued temporary nondiscrimination relief for certain closed defined benefit plans. Notice 2014-5 is in response to requests from ERIC and other trade associations and individual companies who have requested that the IRS amend section 401(a)(4) to permit closed defined benefit plans to satisfy the nondiscrimination requirements using alternative methods. In addition, various members of Congress sent letters to the Treasury Department urging relief in this area.
Notice 2014-5 permits employers that sponsor a closed defined benefit plan AND a defined contribution plan “to demonstrate that the aggregated plans comply with the nondiscrimination requirements of section 401(a)(4) on the basis of equivalent benefits, even if the aggregated plans do not satisfy the current conditions for testing on that basis.”
ERIC members and trial members can read more
here.
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