Understanding IRS guidance Notice 2021-48 under the American Rescue Plan

In late July, the IRS provided additional guidance on changes to single-employer defined benefit pension plan cash contribution rules under the American Rescue Plan. In this episode of Critical Point, Milliman pension consultants Charlie Clark and Casey Baldwin break down the guidance and what it means for pension plans and their plan sponsors. Baldwin and Clark discuss the implications for interest rate relief, amortization rates, prefunding balances, and written elections, among other things. They also share pitfalls to be aware of under this guidance.