The purpose of the Moving Ahead for Progress in the 21st Century Act (“MAP-21”) enacted July 6th was to authorize funds for Federal Highways, highway safety program, and transit programs, and for other purposes. “Other purposes” include pension funding stabilization, PGBC premiums, and transfers of excess pension assets. These new laws will ultimately reduce tax deductible contributions, as well as raise revenue by increasing corporate taxes and PBGC premiums. MAP-21 is effective for plan years beginning on or after January 1, 2012. Near-Term Impact of MAP-21 on Defined Benefit Plans
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.