Description of Revenue Reconciliation Proposal : Part One, Revenue Raising Provisions : Scheduled for Markup By the Senate Committee On Finance On October 3, 1989 Jcx-57-89
Description of Revenue Reconciliation Proposal : Part One, Revenue Raising Provisions : Scheduled for Markup By the Senate Committee On Finance On October 3, 1989 Jcx-57-89
United States. Congress. Joint Committee On Taxation
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This is because the permissible level of contributions is measured by actual contributions to the pension plan after the date the medical benefit is established. Internal Revenue Service General Counsel Memorandum, 39785, issued on April 3, 1989, is rejected to the extent it concludes that contributions to a section 401(h) account may be based on plan costs rather than actual contributions to the plan. No inference is intended as to whether a contribution to a section 401(h) account prior to th...e effective date of this proposal met the requirement that the medical benefits be subordinate to the retirement benefits of the plan where the determination as to whether such 24£ requirement was met was based on plan costs rather than on actual contributions to the plan. Effective Date The proposal would generally apply to years beginning after December 31, 1989. However, no transfer under the general rule would be allowed with respect to any year beginning after December 31, 1994. The special rule applicable to certain negotiated plans would be effective on the date of enactment, except that the continuing obligation to contribute would be effective as of January 1, 1988.
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