The Pension Protection Act of 2006

The Pension Protection Act of 2006 (PPA) contains several significant provisions that affect retirement savings plans. The following resources provide detailed PPA information, including the full text of the PPA legislation, a summary of the provisions impacting governmental plans, and more.

Qualified Default Investment Alternatives

The Department of Labor (DOL) issued final regulations related to Qualified Default Investment Alternatives (QDIAs) on October 24, 2007. The Final QDIA Regulations designate target retirement date funds, managed accounts and balanced funds as qualified default investment alternatives. Stable-value funds are given only short-term (120 days) QDIA status.

• Technical Corrections to October Regulations on QDIA for ERISA Plans
• Field Assistance Bulletin No. 2008-03
• Final QDIA Regulations
• Additional information on the QDIA Regulations

Background on the Pension Protection Act of 2006

• Full text of the Pension Protection Act of 2006
• ICMA-RC's Summary of PPA provisions impacting governmental plans

Permanency for Existing Provisions

• EGTRRA Permanency
• Saver's Credit

New Optional Provisions

• Tax-free withdrawals of up to $3,000 annually for the purchase of qualified insurance premiums by eligible retired public safety officers.
• Non-spouse beneficiaries can now rollover funds to an Inherited IRA.
• Emergency/Hardship withdrawals can now be taken in certain circumstances related to a participant's beneficiary.
• Qualified reservist distributions (401(k) plans only).

New Provisions Affecting IRAs

• Non-spouse beneficiaries can now rollover funds to an Inherited IRA.
• Direct transfer from a qualified plan (457, 401, 403(b)) to a Roth IRA
• Federal tax refunds may be deposited directly to an IRA.
• IRA account holders over age 70½ may make tax-free charitable contributions.