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Regulatory Compliance
The IRS has updated the instructions for Form 8606, which is used to report contributions and distributions, as well as conversions, from IRAs—including Roths.
Form 8606, Nondeductible IRAs, is used to report:
Nondeductible contributions to traditional IRAs;
Distributions from traditional,...
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The Pension Benefit Guaranty Corporation (PBGC) has updated the instructions for filing premiums as well as the portal through which they can be filed.
Rules Are Rules
Sections 4006 and 4007 of ERISA and the PBGC’s Premium Regulations require that premiums be paid to the PBGC; every plan covered...
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The IRS has announced that it is postponing electronic filing of the Form 5558, Application for Extension of Time to File Certain Employee Plan Returns, through the Department of Labor's (DOL) EFAST 2 system until Jan. 1, 2025.
The IRS attributes this to administrative issues concerning EFAST-2....
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In our comment letter submitted to the Department of Labor (DOL) on Jan. 2, 2024, the American Retirement Association (ARA) expressed support for—yet specific issues with—the department’s proposed definition of “fiduciary investment advice” and amendments to PTE 2020-02.
The rulemaking package,...
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The Pension Benefit Guaranty Corporation (PBGC) has work to do in order to accomplish its mission and better serve plans and participants, says a just-released report by the PBGC Participant and Plan Sponsor Advocate.
The 2023 Annual Report of the Participant and Plan Sponsor Advocate Pension...
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A billion-dollar plan has come to terms—cash and non-monetary terms—with participant-plaintiffs represented by Capozzi Adler that had made claims the plan paid $77 per participant, when plans of similar sizes were paying as little as $25 per participant.
The suit had been filed against Advance...
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New year, new forms. The Department of Labor’s Employee Benefits Security Administration (EBSA) on Jan. 1 released the Form 5500, Form 5500-SF, and Form 5500-EZ for reporting concerning the 2023 plan year.
The DOL released informational copies of these forms on Nov. 17; they were intended to...
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A number of lawsuits have recently been filed regarding the alleged misuse of forfeitures—but just a couple of months ago a plan was sued—and lost—a case brought by the Labor Department for not following the plan document’s forfeiture provisions.
According to the Labor Department, on Dec. 27, 2017...
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Call it the not so Solo 401(k). We’ve received questions from some American Retirement Association (ARA) members regarding the impact of the long-term part-time employee rules (LTPTE rules) on Solo 401(k) plans. Many sponsors of Solo 401(k) plans were given advice, and established plans with the...
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Required minimum distributions (RMDs) are more than regulatory requirements—they affect real people. In its latest issue of Employee Plans News, the IRS provides a refresher concerning the application of the RMD rules regarding plan beneficiaries.
Spousal Beneficiaries
Spousal beneficiaries...
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The Pension Benefit Guaranty Corporation (PBGC) reports that in 2023 it changed its actuarial valuation methods, but at the same time a report by the Office of the Inspector General (OIG) warns that the PBGC has more work to do with its financial recordkeeping.
Actuarial Changes
The PBGC in its...
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The IRS has updated Form 8881, Credit for Small Employer Pension Plan Startup Costs, Auto-Enrollment, and Military Spouse Participation, for 2023 filing to reflect provisions in SECURE 2.0 intended to expand coverage and increase retirement savings.
The revisions to Form 8881, under the SECURE 2....
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The IRS has issued a reminder that people born before 1951 need to take required minimum distributions (RMDs) from funds held in IRAs and other retirement plans by the end of the year. And in so doing, it provides an opportunity to in turn remind participants as well as clients whose participants...
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The IRS has just released new guidance in the form of questions and answers addressing several key provisions contained in the SECURE 2.0 Act of 2022.
The IRS advises that the notice (Notice 2024-02) is not intended to provide comprehensive guidance as to the specific provisions of the SECURE 2.0...
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The newest digital edition of ASPPA’s members-only magazine has been posted online!
You have a license to thrill—about the 2023 ASPPA Annual and the TPA Growth Summit! In this issue’s cover story, Genelle Brakefield and Melissa Terito discuss the highs and spies of those events. In our feature...
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The IRS on Dec. 20, 2023, issued the 2023 cumulative list of changes in plan qualification requirements for pre-approved defined contribution plans. The changes are contained in Notice 2024-03.
The 2023 Cumulative List is intended to assist providers applying to the IRS for opinion letters for the...
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The IRS on Dec. 18 issued tables of covered compensation under Internal Revenue Code (IRC) Section 401(l)(5)(E) and the Income Tax Regulations thereunder for the 2024 plan year. The tables are contained in Revenue Ruling (Rev. Rul.) 2024-01.
Rev. Rul. 2024-01 states that for purposes of...
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The Pension Benefit Guaranty Corporation (PBGC) intends to ask the Office of Management and Budget (OMB) for approval to extend its collection of information contained in the regulation on special financial assistance (SFA).
The OMB’s approval of the collection of information expires May 31, 2024...
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When participants earn benefits in a defined benefit plan (DB plan), they can also earn the permanent legal right to receive those benefits in the future. This can occur after a participant reaches certain milestones, such as attaining a certain age, or working for a specified number of years. This...
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We see it happen on a regular basis. Usually as the result of a miscommunication, a retirement plan sponsor makes an erroneous contribution to the plan. This can cause unintended and unwanted consequences, often including nondeductible and/or disallowed amounts. What can be done?
Contributions to...
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