Source: https://www.irs.gov/irb/2020-14_IRB
Timestamp: 2020-05-26 13:54:05
Document Index: 722013069

Matched Legal Cases: ['§ 417', '§ 430', '§ 131', '§ 32', '§ 24', '§ 131', '§ 32', '§ 24', '§ 414', '§ 412', '§ 430', '§ 430', '§ 430', '§ 412', '§ 431', '§ 417', '§ 433', '§ 430', '§ 433']

Internal Revenue Bulletin: 2020-14 | Internal Revenue Service
Internal Revenue Bulletin: 2020-14
Notice 2020-16, page 559.
This notice sets forth updates on the corporate bond monthly yield curve, the corresponding spot segment rates for March 2020 used under § 417(e)(3)(D), the 24-month average segment rates applicable for March 2020, and the 30-year Treasury rates, as reflected by the application of § 430(h)(2)(C)(iv).
Action On Decision 2020-2, page 558.
Acquiescence in result only to the holdings that (1) Medicaid waiver payments received as wages for the care of the taxpayers’ disabled adult children in their own home are not excludable from income under I.R.C. § 131; and (2) if such payments are treated as excludable from gross income pursuant to Notice 2014-7, 2014-4 I.R.B. 445, the payments nevertheless may be earned income for determining a taxpayer’s eligibility to receive the earned income credit (EIC) under I.R.C. § 32 and the additional child tax credit (ACTC) under I.R.C. § 24.
Notice 2020-15, page 559.
This notice provides that, due to the unprecedented public health emergency posed by COVID-19, and the need to eliminate potential administrative and financial barriers to testing for and treatment of COVID-19, a health plan that otherwise satisfies the requirements to be a high deductible health plan (HDHP) under section 223(c)(2)(A) will not fail to be an HDHP merely because the health plan provides medical care services and items purchased related to testing for and treatment of COVID-19 prior to the satisfaction of the applicable minimum deductible. As a result, the individuals covered by such a plan will not fail to be eligible individuals under section 223(c)(1) merely because of the provision of those health benefits for testing and treatment of COVID-19.
Feigh v. Commissioner, 152 T.C. No. 15 (2019), T.C. Docket No. 20163-17.1
1 Acquiescence in result only to the holdings that (1) Medicaid waiver payments received as wages for the care of the taxpayers’ disabled adult children in their own home are not excludable from income under I.R.C. § 131; and (2) if such payments are treated as excludable from gross income pursuant to Notice 2014-7, 2014-4 I.R.B. 445, the payments nevertheless may be earned income for determining a taxpayer’s eligibility to receive the earned income credit (EIC) under I.R.C. § 32 and the additional child tax credit (ACTC) under I.R.C. § 24.
Due to the unprecedented public health emergency posed by COVID-19, and the need to eliminate potential administrative and financial barriers to testing for and treatment of COVID-19, a health plan that otherwise satisfies the requirements to be an HDHP under section 223(c)(2)(A) will not fail to be an HDHP merely because the health plan provides medical care services and items purchased related to testing for and treatment of COVID-19 prior to the satisfaction of the applicable minimum deductible. As a result, the individuals covered by such a plan will not fail to be eligible individuals under section 223(c)(1) merely because of the provision of those health benefits for testing and treatment of COVID-19.
Notice 2020-16
Section 430 specifies the minimum funding requirements that apply to single-employer plans (except for CSEC plans under § 414(y)) pursuant to § 412. Section 430(h)(2) specifies the interest rates that must be used to determine a plan’s target normal cost and funding target. Under this provision, present value is generally determined using three 24-month average interest rates (“segment rates”), each of which applies to cash flows during specified periods. To the extent provided under § 430(h)(2)(C)(iv), these segment rates are adjusted by the applicable percentage of the 25-year average segment rates for the period ending September 30 of the year preceding the calendar year in which the plan year begins.2 However, an election may be made under § 430(h)(2)(D)(ii) to use the monthly yield curve in place of the segment rates.
Notice 2007-81, 2007-44 I.R.B. 899, provides guidelines for determining the monthly corporate bond yield curve, and the 24-month average corporate bond segment rates used to compute the target normal cost and the funding target. Consistent with the methodology specified in Notice 2007-81, the monthly corporate bond yield curve derived from February 2020 data is in Table 2020-2 at the end of this notice. The spot first, second, and third segment rates for the month of February 2020 are, respectively, 1.73, 2.72, and 3.35.
The three 24-month average corporate bond segment rates applicable for March 2020 without adjustment for the 25-year average segment rate limits are as follows:
March 2020 2.71 3.75 4.21
Based on § 430(h)(2)(C)(iv), the 24-month averages applicable for March 2020, adjusted to be within the applicable minimum and maximum percentages of the corresponding 25-year average segment rates, are as follows:
2019 March 2020 3.74 5.35 6.11
2020 March 2020 3.64 5.21 5.94
Section 431 specifies the minimum funding requirements that apply to multiemployer plans pursuant to § 412. Section 431(c)(6)(B) specifies a minimum amount for the full-funding limitation described in § 431(c)(6)(A), based on the plan’s current liability. Section 431(c)(6)(E)(ii)(I) provides that the interest rate used to calculate current liability for this purpose must be no more than 5 percent above and no more than 10 percent below the weighted average of the rates of interest on 30-year Treasury securities during the four-year period ending on the last day before the beginning of the plan year. Notice 88-73, 1988-2 C.B. 383, provides guidelines for determining the weighted average interest rate. The rate of interest on 30-year Treasury securities for February 2020 is 1.97 percent. The Service determined this rate as the average of the daily determinations of yield on the 30-year Treasury bond maturing in November 2049 determined each day through February 12, 2020 and the yield on the 30-year Treasury bond maturing in February 2050 determined each day for the balance of the month. For plan years beginning in March 2020, the weighted average of the rates of interest on 30-year Treasury securities and the permissible range of rates used to calculate current liability are as follows:
March 2020 2.75 2.47 to 2.89
In general, the applicable interest rates under § 417(e)(3)(D) are segment rates computed without regard to a 24-month average. Notice 2007-81 provides guidelines for determining the minimum present value segment rates. Pursuant to that notice, the minimum present value segment rates determined for February 2020 are as follows:
February 2020 1.73 2.72 3.35
2 Pursuant to § 433(h)(3)(A), the 3rd segment rate determined under § 430(h)(2)(C) is used to determine the current liability of a CSEC plan (which is used to calculate the minimum amount of the full funding limitation under § 433(c)(7)(C)).
Table 2020-2 Monthly Yield Curve for February 2020 Derived from February 2020 Data
0.5 1.66 20.5 3.16 40.5 3.37 60.5 3.45 80.5 3.48
1.0 1.67 21.0 3.17 41.0 3.37 61.0 3.45 81.0 3.49
1.5 1.68 21.5 3.18 41.5 3.38 61.5 3.45 81.5 3.49
2.0 1.69 22.0 3.19 42.0 3.38 62.0 3.45 82.0 3.49
2.5 1.69 22.5 3.19 42.5 3.38 62.5 3.45 82.5 3.49
3.0 1.71 23.0 3.20 43.0 3.38 63.0 3.45 83.0 3.49
3.5 1.73 23.5 3.21 43.5 3.39 63.5 3.45 83.5 3.49
4.0 1.76 24.0 3.22 44.0 3.39 64.0 3.46 84.0 3.49
4.5 1.81 24.5 3.22 44.5 3.39 64.5 3.46 84.5 3.49
5.0 1.86 25.0 3.23 45.0 3.39 65.0 3.46 85.0 3.49
5.5 1.92 25.5 3.24 45.5 3.40 65.5 3.46 85.5 3.49
6.0 1.99 26.0 3.24 46.0 3.40 66.0 3.46 86.0 3.49
6.5 2.06 26.5 3.25 46.5 3.40 66.5 3.46 86.5 3.49
7.0 2.14 27.0 3.26 47.0 3.40 67.0 3.46 87.0 3.49
7.5 2.21 27.5 3.26 47.5 3.40 67.5 3.46 87.5 3.49
8.0 2.29 28.0 3.27 48.0 3.41 68.0 3.46 88.0 3.49
8.5 2.36 28.5 3.27 48.5 3.41 68.5 3.46 88.5 3.50
9.0 2.44 29.0 3.28 49.0 3.41 69.0 3.47 89.0 3.50
9.5 2.50 29.5 3.29 49.5 3.41 69.5 3.47 89.5 3.50
10.0 2.57 30.0 3.29 50.0 3.41 70.0 3.47 90.0 3.50
10.5 2.63 30.5 3.30 50.5 3.42 70.5 3.47 90.5 3.50
11.0 2.68 31.0 3.30 51.0 3.42 71.0 3.47 91.0 3.50
11.5 2.73 31.5 3.31 51.5 3.42 71.5 3.47 91.5 3.50
12.0 2.78 32.0 3.31 52.0 3.42 72.0 3.47 92.0 3.50
12.5 2.82 32.5 3.31 52.5 3.42 72.5 3.47 92.5 3.50
13.0 2.86 33.0 3.32 53.0 3.43 73.0 3.47 93.0 3.50
13.5 2.90 33.5 3.32 53.5 3.43 73.5 3.47 93.5 3.50
14.0 2.93 34.0 3.33 54.0 3.43 74.0 3.47 94.0 3.50
14.5 2.96 34.5 3.33 54.5 3.43 74.5 3.48 94.5 3.50
15.0 2.98 35.0 3.34 55.0 3.43 75.0 3.48 95.0 3.50
15.5 3.01 35.5 3.34 55.5 3.43 75.5 3.48 95.5 3.50
16.0 3.03 36.0 3.34 56.0 3.43 76.0 3.48 96.0 3.50
16.5 3.05 36.5 3.35 56.5 3.44 76.5 3.48 96.5 3.50
17.0 3.06 37.0 3.35 57.0 3.44 77.0 3.48 97.0 3.50
17.5 3.08 37.5 3.35 57.5 3.44 77.5 3.48 97.5 3.50
18.0 3.10 38.0 3.36 58.0 3.44 78.0 3.48 98.0 3.51
18.5 3.11 38.5 3.36 58.5 3.44 78.5 3.48 98.5 3.51
19.0 3.12 39.0 3.36 59.0 3.44 79.0 3.48 99.0 3.51
19.5 3.13 39.5 3.37 59.5 3.44 79.5 3.48 99.5 3.51
20.0 3.15 40.0 3.37 60.0 3.45 80.0 3.48 100.0 3.51
Bulletin 2020–14