The Treasury Department and the Internal Revenue Service have issued proposed regulations to provide funding guidance for single-employer defined-benefit plans.

The proposed regulations, under Section 430 of the Tax Code, offer guidance for employers sponsoring single-employer defined-benefit plans related to the determination of the minimum required contributions under new funding rules enacted as part of the Pension Protection Act of 2006. 

The proposed regulations, together with three earlier sets of proposed regulations, enable plan sponsors to determine the contribution requirements that apply to their defined-benefit plans under the new funding scheme, including the application of quarterly contribution requirements. 

Although the new funding rules are generally effective for plan years beginning on or after Jan. 1, 2008, the new regulations are proposed to be effective for plan years beginning on or after Jan. 1, 2009. Plan sponsors, however, can rely on the proposed regulations for purposes of satisfying the minimum funding requirements for plan years beginning in 2008.

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