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EGTRRA
Permanence and Other Retirement Plan Provisions
The
bill makes the retirement savings provisions of EGTRRA permanent. These include
higher contribution, deferral, and benefit limits, age 50 catch-up
contributions, Roth 401(k) contributions, and a saver’s credit for
lower-income contributors to retirement plans. The saver’s credit is indexed
for inflation.
Other Provisions
 | New participant disclosure requirements are added, including expanded participant benefit statements for DB and DC plans, effective in 2007 (with a delayed effective date for collectively bargained plans). |
| Pension plans may pay retirement benefits to employees who have attained age 62 even though the employee continues to be employed by the employer. The current rule prohibits plans from commencing retirement benefits to active employees before the later of the plan’s normal retirement age or age 65. |
| Portability rules are expanded, including allowing eligible rollover distributions for nonspouse beneficiaries, effective in 2007. |