American Rescue Plan Act Brings Retirement Plan Relief

The American Rescue Plan Act (the “Act”) was signed into law on March 11, 2021. The Act, which is largely focused on COVID-19 relief, brings with it a few notable retirement plan relief provisions (and one executive compensation change to help foot the bill). These provisions can be broken down into (1) single-employer pension funding relief, (2) expansion of Code Sec. 162(m) that limits deductions on executive compensation, (3) multiemployer pension funding relief, and (4) increase in PBGC premiums for multiemployer plans.

In this TAXES – The Tax Magazine article, Groom’s Elizabeth Dold, David Levine and Mark Carolan review each of these provisions and discuss what plan sponsors should be doing to take advantage of the relief.