The IRS to Issue a How-To for PRA Funding Relief Elections

The Internal Revenue Service (IRS) said it will be issuing detailed guidance about the special funding rules for single-employer defined benefit plans in the recent Pension Relief Act of 2010 (PRA).


In Notice 2010-55, the tax agency said the anticipated guidance could deal with topics such as:

  • calculation of the alternative amortization schedules permitted under PRA 2010 (and the effect on funding balances);
  • the rules relating to installment acceleration amounts under § 430(c)(7);
  • the procedures for making the election to use an alternative amortization schedule; and
  • the notice requirements of § 430(c)(2)(D)(vi).


According to the IRS, in the case of a plan year that ends before the guidance is issued, the plan sponsor will be permitted to elect to use an alternative amortization schedule under PRA without regard to whether the Form 5500 (and Schedule SB) has been filed for that plan year.  For example, the tax agency noted, the sponsor of a plan with a calendar year plan year will not be precluded from making the election for 2009 merely because the Form 5500 for that plan year has been filed for that plan year.

Accordingly, such a plan sponsor should file the Form 5500 (and Schedule SB) in accordance with the applicable deadline, taking into account the rules for obtaining an extension.

The future guidance will address reporting requirements if the plan’s Form 5500 (and Schedule SB) for the plan year has been filed, the IRS document said.

The new IRS document is at