IRS Notice 2014-5 Provides Temporary Nondiscrimination Relief for Closed Defined Benefit Plans | Practical Law
The Internal Revenue Service (IRS) issued Notice 2014-5, which permits certain 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 IRC 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. The Notice also requests comments on possible permanent changes to the nondiscrimination rules under IRC Section 401(a)(4).