If
you are still having problems viewing this message, please click here for
additional helpThe IRS has just released proposed regulations dealing with "phased retirement" which will apply for tax-qualified defined benefit plans. For employees who are over age 59-1/2 and who voluntarily join a written established phased retirement program of their employer and thereby reduce their hours of work by at least 20%, the new proposed regulations would let an employer establish a phased retirement program under which the employee could receive phased retirement benefits. The regulations take the approach that the employee is partially retired and partially in service during the phased retirement period. A highly compensated employee before phased retirement will continue to be considered a highly compensated employee during the phased retirement period. A copy of the new proposed regulations are attached.