Tag: IRS

IRS

Missing Participants Errors Now Top DOL, IRS Audit Focus, Nudging Out Late Payroll Deposits, Winston & Strawn Says

Federal agency audits are never far from the minds of employer retirement plan sponsors and their third-party administrators (TPAs), but knowing which recurring errors and internal controls most interest the Department of Labor (DOL) and the Internal Revenue Service (IRS) right now can be helpful in avoiding or preparing for such inquiries.

IRS Ruling Permits Rollover from Deceased Participant’s Account to Non-Designated Beneficiary

Plan sponsors regularly handle situations that arise from a deceased participant’s failure to designate a beneficiary for his or her employer-sponsored retirement account. A private letter ruling (PLR) from the Internal Revenue Service (IRS) earlier this year could provide some insight into the agency’s thinking about allowing surviving spouses to roll over a deceased participant’s […]

Two Approaches to New Cash Balance Plan

Yesterday we took a look at Internal Revenue Service (IRS) guidance on how to change interest crediting rates in a cash balance (CB) plan. Today we’ll look at the two approaches that the IRS has discussed to address a change in the interest crediting rate.

ACA

Business Groups Decry IRS Enforcement of ACA Employer Mandate

In its recent efforts to enforce the Affordable Care Act’s (ACA) employer mandate, the Internal Revenue Service (IRS) has been disregarding key safeguards in the law designed to protect employers from unwarranted penalties, a coalition of business organizations warned in a recent letter to federal officials.

Plan Sponsors Must Now Analyze 401(k) Plan Administration (Part 2)

Yesterday we began to explore some of the changes that the Bipartisan Budget Act of 2018 has made to the Tax Cuts and Jobs Act, and what it all means. Today we will continue to explore the topic, including the definition of compensation and hardship distributions.

global workers

Reconstructed Travel Logs Inadequate for Documenting Mileage

In a recent case, Velez v. Comm’r, the U.S. Tax Court ruled that travel logs that were re-constructed years after the fact were not adequate to substantiate business-related miles as required by Section 274(d) of the Internal Revenue Code.

HSA

IRS Restores Maximum Family HSA Contribution to $6,900

Responding to concerns about administrative headaches for plan sponsors and administrators, the Internal Revenue Service (IRS) reversed its previous decision to lower the maximum family health savings account (HSA) contribution from $6,900 to $6,850.

retirement

ARA Seeks Expansion of IRS Self-Correction Program for Retirement Plans

The Internal Revenue Service (IRS) should modify its Employee Plans Compliance Resolution System (EPCRS) to expand its use by retirement plans seeking to self-correct errors, according to the American Retirement Association (ARA). Doing so would reduce the burden of newly increased Voluntary Correction Program (VCP) fees (see, IRS Adjusts Voluntary Correction Program User Fees Starting […]

retirement

IRS May Expand Determination Letters for Some Retirement Plans

The Internal Revenue Service (IRS) said on April 5 that it may reopen its determination letter program to certain types of individually designed retirement plans, beyond the narrow set of circumstances in which such letters are currently available.