IRS Issues Guidance on Windsor Decision Relating to Tax-Qualified Plans

Recently, the IRS issued Notice 2014-19, relating to same sex couples and retirement plans. In the 2013 Windsor decision, the U.S. Supreme Court struck down part of the Defense of Marriage Act, basically causing state law to determine whether people are lawfully married.   In Rev. Rul. 2013-17 (issued by the IRS after the Windsor decision), the IRS ruled that persons married in a state where gay marriage is recognized are deemed married for federal tax purposes, even if they move to another state that does not recognize gay marriage.  Civil unions, etc. don’t amount to a marriage.  Plans generally have until the later of the end of the remedial amendment period or December 31, 2014 to be amended to comply.  However, generally, compliance with the Windsor decision is necessary as of June 26, 2013.  Notice 2014-19 permits later compliance (by September 16, 2013) for states that do not recognize gay marriage (they must follow Rev. Rul. 2013-17 beginning on September 16, 2013)