There are numerous and complex administrative issues associated with the potential retroactive application of the U.S. Supreme Court’s decision in U.S. v. Windsor with respect to same-sex couples benefits. To that end, ERIC has joined with 13 other business trade associations in a letter asking the Treasury Department to use its authority under Internal Revenue Code section 7805(b)(8) to limit the extent of the decision’s retroactivity.
The letter describes the areas in which application of retroactive effect would be difficult for retirement plan administrators and sponsors including:
- Spousal pension benefits;
- 401(k) plan death benefits;
- Required minimum distributions;
- Rollover distributions;
- Hardship distributions;
- Plan loans; and
- Plan testing.
The letter recommends that the Treasury Department apply the Windsor decision on a prospective-only basis.