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.
This is a pre-approved plan that meets IRS requirements.
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.
Plan sponsors who have already submitted an Application for Determination for Terminating Plan in 2018 will receive a refund of $700.
The agency also issued information about how to obtain or re-establish an employer identification number (EIN) for a retirement plan trust.
The House GOP majority adopted a unified version of the Tax Cuts and Jobs Act Tuesday afternoon; they may have to repeat the process one more time.
IRS compliance questions have been removed from the form.
Following the earliest stages of debate, both the House and the Senate seem to have backed away from major changes to deferred compensation arrangements, as well as from other retirement-industry focused proposals.
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.
Among other changes of note for plan sponsors, the proposal “applies a single aggregate limit to contributions for an employee in a governmental section 457(b) plan and elective deferrals for the same employee under a section 401(k) plan or a 403(b) plan of the same employer.”
The memo lists actions plan sponsors should take to locate missing participants in order not to be challenged on violating RMD rules.
The GOP tax reform proposal leaves 401(k) deferrals alone, but there are other significant reforms in the package that would change the treatment of hardship withdrawals and in-service distributions for DC, DB and 457 plans, among others.
The agency has relaxed loan and hardship distribution rules.
Among its list for retirement plans are projects for which guidance has been long-awaited from the agencies.