Spectra Newsroom

Unused Leave Pay Eases Retirement Savings Burden
by R. Brent Bennett, Partner, Spectra Management

Federal lawmakers are actively addressing how to pump life back into retirement savings. In considering their retirement savings options, employers and employees should review a host of new federal retirement and savings initiatives.

Among these are two recently issued revenue rulings by the U.S. Treasury and the IRS.  Titled “Revenue Ruling 2009-31” and “Revenue Ruling 2009-32,” these rulings describe how employers and employees can now contribute unused leave and/or vacation time amounts to their 401(k) or profit-sharing plans.

It is important that business owners keep appraised of today’s fast-changing benefits environment. At year’s end, many employees find themselves with unused sick or paid leave and worry about losing the benefit altogether the following year. These provisions change everything, giving employers and employees another opportunity to both incent and save for retirement.

For those seeking more information, detail pertaining to the IRS Revenue Rulings 2009-31 and/or 2009-32 is available online at www.irs.gov.