February 2003

IRA Update

On November 19, 2002, the IRS issued Revenue Procedure 2002-73 that extends to September 30, 2003, the deadline for amending pre-approved plans to comply with the Uruguay Round of the General Agreement on Tariffs and Trade (GATT), the Uniformed Services Employment and Reemployment Rights Act of 1994, the Small Business Job Protection Act of 1996, and the Taxpayer Relief Act of 1997, which are collectively known as the GUST amendments.

The Economic Growth and Tax Relief Reconciliation Act of 2001 was extended for some but not all purposes until September 30, 2003. However, according to informal discussions with the IRS, the 2001 Act must be amended by December 31, 2002, if the employer would like to use a compensation base that conforms with the higher 2002 limitations for a calendar-year plan.

Seymour Goldberg, JD, CPA
Goldberg & Goldberg, P.C.
Melville, N.Y.

Editor’s Note: The writer was coauthor of “Tax Alert for Retirement Plans” (The CPA Journal, November 2002). He is a member of the IRS Northeast Area Pension Liaison Group.

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