IRS Releases Final Regulation for Methodology for Determining Present Value for DB Plans
Published January 12, 2024
The Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) issued final regulations
specifying the methodology for using the corporate bond yield curve to
determine the interest rates used in calculating present value and for
making other calculations for defined benefit plans. These regulations
affect participants in, beneficiaries of, employers maintaining, and
administrators of certain retirement plans, as well as insurance
companies.These regulations apply for determining the corporate
bond yield curve under section 430(h)(2)(D) of the Internal Revenue Code
(IRC) for months that begin on or after February 1, 2024.
The final rule is effective January 12 2024.