Final 401 (k) Regulations: Confirming a lot, Changing a Little

On December 29, 2004, the IRS issued final regulations governing 401(k) plans (the “Regulations”). The Regulations set forth a comprehensive revision of the rules applicable to 401(k) plans and reflect statutory changes since 1994, when the IRS last issued final regulations. For the most part, the Regulations follow guidance contained in proposed regulations issued in 2003, but do contain some modifications. The purpose of this Management Alert is to re-cap the significant provisions of the proposed regulations and summarize the changes made to these provisions by the Regulations. Our summary of the proposed regulations can be viewed by clicking here.