IRS Notice 2008-7 - Extension of Transitional Relief for Diversification Requirements for Certain Defined Contribution Plans

Posted by Aaron Juckett, CPA, CPC, QPA, QKA on Wed, Dec 19, 2007
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The IRS announced the release of IRS Notice 2008-7 - Extension of Transitional Relief for Diversification Requirements for Certain Defined Contribution Plans:

"Notice 2008-07 provides relief for certain defined contribution plans holding publicly traded employer securities under Notice 2006-107, 2006-51 I.R.B. 1114. The transitional relief provided for the period prior to January 1, 2008, in paragraph 4 of Part III.D of Notice 2006-107 will continue to apply after 2007 until new regulations go into effect.

Notice 2008-7 will be published in Internal Revenue Bulletin 2008-3, dated January 22, 2008."

Extension of Transitional Relief

  • "It is expected that these regulations, when finalized, will not be effective before plan years beginning on or after January 1, 2009."
  • "Except as otherwise provided in the proposed or final regulations, plans must continue to apply Notice 2006-107 until the regulations go into effect."
  • "For this purpose, the transitional relief provided for the period prior to January 1, 2008, in paragraph 4 of Part III.D of Notice 2006-107 will continue to apply after 2007 until the regulations go into effect."

Topics: rules and regulations, ESOP, employee stock ownership plan

Aaron Juckett, CPA, CPC, QPA, QKA
Written by Aaron Juckett, CPA, CPC, QPA, QKA

Aaron is President and founder of ESOP Partners and provides implementation, administration, and consulting services to hundreds of companies. He is a member of The ESOP Association (TEA) and the National Center for Employee Ownership (NCEO).

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