Hunton Employment & Labor Perspectives

On April 3, 2014, the Internal Revenue Service issued guidance (Revenue Ruling 2014 9) that should make it much easier for qualified plans (including section 403(b) plans) to accept direct rollover contributions from other qualified plans and IRAs.  While qualified plans have long been allowed to accept such rollovers, the new guidance should encourage more plans to accept rollovers by simplifying the process of determining whether a proposed rollover is an “eligible” one which the plan can accept without jeopardizing the plan’s on-going compliance.