Daily Tax Update - September 8, 2016: Treasury Finalizes Partial Annuity Rules for Defined Benefit Plans

Treasury Finalizes Partial Annuity Rules for Defined Benefit Plans:  Today, Treasury released final regulations on the partial annuity rules for defined benefit plan participants.  Under the rules, plan participants have the option of receiving both a lump sum distribution and an annuity as a bifurcated benefit in order to discourage plan participants from opting to take their retirement assets as a lump sum.  The rule takes effect September 9.

Wyden Proposes Legislation Capping High-Value Roth IRA Contributions:  Ranking Senate Finance Committee Member Ron Wyden (D-OR) released a discussion draft today of his proposed bill, the Retirement Improvements and Savings Enhancements (RISE) Act.  The proposed legislation would preclude additional contributions to a Roth IRA or individual retirement account if its total value tops $5 million, among other reforms.  The proposal also requires distributions of amounts over the $5 million ceiling.