Internal Revenue Bulletin:  2007-39 

September 24, 2007 

EMPLOYEE PLANS


REG-142695-05 REG-142695-05

Proposed regulations under section 125 of the Code provide guidance on cafeteria plans. EE-16-79, EE-130-86, REG-243025-96, and REG-117162-99 withdrawn. Rev. Ruls. 69-141, 2002-41, 2003-102, 2005-24, 2006-36, and Notices 89-110 and 2002-45 modified. A public hearing is scheduled for November 15, 2007.

REG-148393-06 REG-148393-06

Proposed regulations under section 402 of the Code clarify that a payment from a qualified plan for an accident or health insurance premium generally constitutes a distribution under section 402(a) that is taxable to the distributee under section 72 in the taxable year in which the premium is paid. The taxable amount generally would equal the amount of the premium charged against the participant’s benefits under the plan. These regulations would also provide that a distribution for the payment of the premium by a qualified plan generally is not excluded from gross income under section 104, 105 or 106, but such distribution would constitute an amount paid for accident or health insurance under section 213. A public hearing is scheduled for December 6, 2007.

Notice 2007-75 Notice 2007-75

Weighted average interest rate update; corporate bond indices; 30-year Treasury securities. The weighted average interest rate for September 2007 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth.


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