IRS COVID Relief: Rehiring & Retaining Retirees

IRS is helping employers wanting to rehire retirees or retain employees after retirement age.

To help address COVID-related labor shortages, the IRS reminds employers that they generally will not jeopardize the tax status of their pension plans if they rehire retirees or permit distributions of retirement benefits to current employees who have reached age 59 ½ or the plan’s normal retirement age.

Be sure to check out two newly added frequently asked questions (https://bit.ly/3CN85zb) that highlight existing ways that employers can meet their employment objectives and still comply with the plan qualification rules.