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.
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.
IRS says missed repayments can be addressed in the following quarter or that participants can refinance a loan, but that it will still be due on the original due date.
Following the IRS' curtailment the determination letter program for retirement plan sponsors, McDermott Will & Emery is releasing an opinion letter and operational review program for individually designed plans.
Plan sponsors will have a number of new compliance checks to keep in mind.
The list of regulatory and legislative challenges affecting employers and their retirement plan consultants can seem endless, and when linked to the increasing litigation from the plaintiffs’ bar, it can seem impossible to reach a point of certainty.
In a statement, ERIC said it is pleased the agency took into account its request for flexibility for DB plan sponsors to potentially delay for one year the use of the new mortality tables for purposes of satisfying minimum funding standards.
Last year, the IRS updated the comprehensive system of correction programs for sponsors of retirement plans.
Generally, the overall effective date for 403(b) pre-approved plans are plan years beginning on or after January 1, 2010, but this raises issues for certain plan sponsors.
In the absence of the determination letter program, the law firm is helping plan sponsors of tax-qualified plans remain compliant with IRS plan document requirements.
The PBGC and DOL also are providing relief similar to that provided to Hurricane Harvey victims.