Definition
A bill that made technical corrections to the Pension Protection Act of 2006 (PPA 06) and provides for additional amendments to PPA-06, the Internal Revenue Code, ERISA , and the Age Discrimination in Employment Act of 1967 (“ADEA”).
The Worker, Retiree, and Employer Recovery Act of 2008 provisions include the following:
- Waiver of the Required Minimum Distributions (RMD) for Defined Contribution Plans , 403(b) plans , governmental 457(b) plans and IRAs for 2009. For details on this provision see the article Waiver of Required Minimum Distribution for 2009
- Requiring Qualified Plans , 403(b) plans , 403(a) plans and governmental 457(b) plans to allow nonspouse beneficiaries to rollover inherited plan assets to Inherited IRAs
- Provided confirmation that rollovers from Designated Roth Accounts to Roth IRAs are not subject to the $100,000 Modified Adjusted Gross Income (MAGI) limitation that applies to Roth IRA conversions
- Allow for the rollover of amounts received in airline carrier bankruptcy to Roth IRAs
Referring Cite
Additional Helpful Information
Provisions were also included for defined benefit plans. These included:
- Reform of the funding rules for Single-Employer Defined Benefit Pension Plans
- Pension Benefit Guaranty Corporation (PBGC) Guarantee and Related Provisions
- Increase in Pension Plan Diversification and Participation and Other Pension Provisions
- Modification of interest rate assumption required with respect to certain small employer plans
- Extension of the transitional rule for single-employer defined benefit pension plans, to plan year beginning after 2008 even if, for each preceding plan year after 2007, the plan’s shortfall amortization base was not zero.
