Tag: Internal Revenue Service
Since the Supreme Court decision about the definition of church plan under the Employee Retirement Income Security Act, the Internal Revenue Service has issued several private letter rulings concerning entities’ church plan status, including an organization with a 403(b) plan.
With some exceptions, PBGC premium payers and data providers can now assume filing relief from the pension insurer in each case that the IRS issues its own disaster-related relief that impacts the filing of Forms 5500.
In an issue snapshot, the Internal Revenue Service (IRS) discusses when a cash balance plan amendment reduces (or potentially reduces) the interest crediting rate.
The Plan Sponsor Council of America has heard concerns from its members that they have been or may be subjected to enforcement actions even though the DOL and IRS have not issued comprehensive guidance on missing participants that provide a clear roadmap for compliance.
If a short plan year is created when a plan is amended, terminates or is newly adopted, proration of the Internal Revenue Code annual compensation dollar limit and limit on DC plan additions will be needed.
If there is a complete discontinuance of contributions in a profit sharing plan, including a 401(k) plan, the plan is treated as terminated for vesting purposes and affected employees must be 100% vested in their accrued benefit.
For an individual with family coverage, the 2019 health savings account (HSA) contribution limit is $7,000, up from the recently reset $6,900 limit for 2018.
The IRS says it is reversing the change to the limitation because stakeholders informed it that implementing the $50 reduction to the limitation on HSA contributions for an individual with family coverage under an HDHP would impose numerous unanticipated administrative and financial burdens.
When the IRS ended its determination letter program, it said it anticipates making exceptions based on program capacity to work on additional applications, and the need for rulings in certain areas.
The agency also issued information about how to obtain or re-establish an employer identification number (EIN) for a retirement plan trust.
The agency also issued a reminder that a certain amount of flexible spending account assets can be rolled over to the following year.
The tables are to be used for determining contributions to DB plans and permitted disparity in DC plan contributions.
The memo lists actions plan sponsors should take to locate missing participants in order not to be challenged on violating RMD rules.
In response to a private letter ruling from the IRS, ICMA-RC will provide its public-sector clients with a model 457(b) plan document incorporating auto enrollment based on the plan approved by the IRS.
“As we are preparing to finalize our 2016 Form 5500s in time for the extended deadline, a colleague of mine has stated that there are some questions on the form that it would appear that we should answer, but that the Internal Revenue Service (IRS) has actually suggested we skip. That sounds bizarre to me; is that possible?”