Proposed regulations would provide an exception, if certain requirements are met, to a multiple employer plan (MEP) being disqualified due to the actions of one plan sponsor member.
In a new Snapshot publication, the IRS offers a detailed review of the shifting regulatory provisions applying to pre-retirement hardship distributions from DC plans, noting how these are changing as a result of the Bipartisan Budget Act of 2018.
The limits will increase $50 for an individual with self-only coverage and $100 for an individual with family coverage in 2020.
A client alert from Drinker Biddle & Reath goes into detail about the IRS’ recent expansion of its determination letter program and notes that the IRS is still considering input given about further expansion.
The agency has indicated it will launch audit initiatives regarding 403(b) plan compliance this summer; the remedial amendment period and other IRS-provided relief can help plan sponsors prepare.
The agency will accept determination letter applications for hybrid plans for a certain period and for merged plans on an ongoing basis.
The Department of the Treasury and the IRS use the Priority Guidance Plan to identify the next tax issues that should be addressed through regulations, notices and other published administrative guidance.
An IRS Revenue Procedure expands self-correction methods for certain retirement plan document and retirement plan loan failures and provides a new method of correction by plan amendment.
The IRS explains that the rules under IRC Section 409(p) are designed to prevent a group of “disqualified persons” from collectively owning 50% or more of an S corporation’s stock (i.e., the definition of a “nonallocation year”), and discusses methods for preventing violation of the rules.
The updated mortality improvement rates and static tables apply for purposes of calculating a defined benefit (DB) plan’s funding target and other items for valuation dates occurring during the 2020 calendar year.
The IRS had previously put a halt to the practice of defined benefit (DB) plan sponsors offering lump-sum windows to retirees in pay status, saying it intended to amend regulations so that such an acceleration of payments would not be allowed.
In Information Letter 2018-0033, the IRS offers some examples of the type of errors which may be corrected—expanding on previous guidance.
Among other things, comments are invited on ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology.
The web page provides information for retirement plan sponsors who have individually designed retirement plan documents but want to adopt a pre-approved prototype or volume submitter plan document.
A schedule to help plan sponsors track important due dates for their plan
The Puerto Rico Department of the Treasury has published its 2019 limits on qualified retirement plan contributions and benefits.