IRS Announces Withdrawal of Certain Proposed Nondiscrimination Rules Applicable to Cross-Tested Plans

The U.S. Department of the Treasury and the Internal Revenue Service announced in Announcement 2016-16 that they will withdraw certain provisions of proposed regulations published in January 2016 (the ?Ç£Withdrawn Regulations?Ç¥) relating to certain nondiscrimination requirements applicable to qualified retirement plans. The provisions of the Withdrawn Regulations were intended to address certain plan designs that satisfy existing nondiscrimination rules when providing a special benefit formula for selected employees without extending that formula to a classification of employees that is reasonable and established under objective business criteria. The Withdrawn Regulations would have presented problems for so-called ?Ç£QSERP?Ç¥ provisions in defined benefit plan and certain cash balance plan designs, among others. Announcement 2016-16 can be found?áhere.