IRS proposes new rules for funding single-employer defined benefit plans
Employers, plan administrators and beneficiaries must review the changes by Oct. 19, 2026.
The Internal Revenue Service issued a notice of proposed rulemaking (FR Doc No: 2026-17021, RIN 1545-BR50) to amend 26 CFR part 1. The amendments would change the rules for determining a single-employer defined benefit plan's target normal cost and funding target.
The proposed regulations implement statutory amendments from the Worker, Retiree, and Employer Recovery Act of 2008, the SECURE Act of 2019, and the SECURE 2.0 Act of 2022 that have not yet been reflected in the regulations.
Under the draft language, the minimum required contribution for a plan year remains a function of the target normal cost, shortfall amortization charge, funding target, waiver amortization charge, and the value of plan assets as defined in section 430 of the Internal Revenue Code. The changes affect participants, beneficiaries, employers maintaining, and administrators of single-employer defined benefit plans.
Written or electronic comments and requests for a public hearing must be received by October 19, 2026. Commenters are encouraged to submit electronically via the Federal eRulemaking Portal at regulations.gov, referencing IRS and REG-107855-25. Paper submissions may be mailed to the address listed in the notice.
For additional information, the notice lists Tom Morgan at (202) 317-6700 for questions about the proposed regulations and the Publications and Regulations Section at (202) 317-6901 or email for comment-submission inquiries.