On August 20, 2020, the IRS published proposed regulations addressing a provision of the Tax Cuts and Jobs Act (the “TCJA”), which became law on December 22, 2017. The TCJA provided a more lenient rule than under previous law if qualified retirement plan participants have an outstanding loan when their plan terminates or when their […]
On December 20, 2019, President Trump signed into law the Setting Every Community Up for Retirement Enhancement Act of 2019 (the “Act”). This constitutes the most comprehensive law in the retirement plans field since the Pension Protection Act of 2006. The Act’s provisions that affect defined contribution plans, such as 401(k) plans and 403(b) plans, […]
The U.S. Department of Labor (“DOL”) recently published annual guidance adjusting certain penalties that can affect qualified retirement plans. This guidance was published pursuant to a 2015 federal law, which required various government agencies to make annual inflation adjustments to certain civil monetary penalties. This DOL guidance is effective as of January 23, 2019. […]
On November 1, 2018, via Notice 2018-83, the IRS announced the effect of cost-of-living adjustments on certain 2019 dollar limits for various retirement plans (e.g., 401(k) plans). Several of the limits will not change for 2019 because the increase in the cost-of-living index did not meet statutory thresholds that trigger their adjustment. However, several limits […]
On August 17, 2018, the IRS released Private Letter Ruling 201833012 (the “PLR”). The party that requested the PLR is a 401(k) plan sponsor. Under that entity’s plan, if an employee makes an elective deferral equaling at least 2% of his or her eligible compensation (which is the plan’s minimum permitted elective deferral), the plan […]
On October 19, 2017, in Notice 2017-64, the IRS announced the effect of cost-of-living adjustments on certain 2018 dollar limits for various retirement plans (e.g., 401(k) plans). Several of the limits will not change for 2018 because the increase in the cost-of-living index did not meet statutory thresholds that trigger their adjustment. However, several limits […]
As the end of 2016 quickly approaches, retirement plan sponsors should promptly consider several important potential tasks. Examples include the following: December 1 Deadline for Certain Plan Communications to Participants: Depending on a plan’s design, one or more of the following annual notices might be required: Safe Harbor Notice, Qualified Default Investment Alternative (“QDIA”) Notice, […]
2017 Retirement Plan Limits Announced: On October 27, in Notice 2016-62, the IRS announced the effect of cost-of-living adjustments on certain 2017 dollar limits for various retirement plans (e.g., 401(k) plans). Several of the main limits will not change for 2017 because the increase in the cost-of-living index did not meet statutory thresholds that trigger […]