Cypen & Cypen for |
Stephen H. Cypen, Esq., Editor ![]() |
IRS THROWS A CURVE We previously advised you that the Internal Revenue Service National Office issued a memorandum indicating that (1) defined contribution deferred retirement option programs are not defined contributions plans for purposes of applying the IRS limit on plan contributions and (2) the annual DROP deposits (that is, the annual sum of the monthly return of benefit adjustments credited to a particular DROP account) are not subject to the annual additions limitation applicable to defined contribution plans (See C&C Special Supplement Newsletter for January 8, 2015 and C&C Special Supplement Newsletter for January 13, 2015).
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