 NEWSLETTERS Volume 7, Issue 3 .................... December 2007 Final Post-Severance Pay Rules In our January 2007 newsletter, we notified you about the proposed regulations under section 415 of the Internal Revenue Code. The IRS has now issued the final section 415 regulations. The final regulations are similar to the proposed regulations except the deadline for post-severance payments to count as plan compensation has been expanded. Under the final regulations, any payments after termination of service for overtime, commissions, bonuses, accrued sick, accrued vacation or similar payments which would have been paid if the individual continued to be employed, may be used as plan compensation if made by the later of: (1) 2½ months after severance from employment, or (2) the end of the plan year which includes the date of severance from employment. This information is provided for general and educational purposes only, and is not intended to provide legal, tax or investment advice. Contact Administrative
Retirement Services, Inc. if you have questions about the above information. © Administrative Retirement Services, Inc. 2007 Published by Administrative Retirement Services, Inc., Copyright 2007 by Administrative Retirement Services, Inc. Reproduction in whole or in part is prohibited except by written permission. All rights are reserved. Information has been obtained by Administrative Retirement Services, Inc. from sources believed to be reliable. However, because of the possibility of human or mechanical error by our sources, Administrative Retirement Services, Inc. or others, Administrative Retirement Services, Inc. does not guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions or the result obtained from the use of such information. Readers should seek specific advice before acting with regard to the subjects mentioned here. |