Insights

During 2020, our Employee Benefit Services Group represented several retirement plans that were selected for examination by the Internal Revenue Service (IRS).

This is welcomed news to many retirees or near retirees planning and budgeting for their retirement.

During 2020, our Employee Benefit Services Group represented several retirement plans that were selected for examination by the Internal Revenue Service (IRS).

The Setting Every Community Up for Retirement Enhancement (SECURE) Act (the Act) of 2019 seeks to expand retirement plan coverage for U.S. workers.

Plan sponsors should review the cost of living adjustments (COLAs) to determine what, if any, changes need to be communicated to employees by means of orientation meetings and enrollment forms.

The Department of Labor (DOL) has recently published Interim Final Regulations (Regulations) pursuant to changes enacted by the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) which require plan administrators of defined plans [e.g., 401(k) and 403(b)] to express a participant’s current account balance both as a single life annuity and a qualified joint and survivor annuity stream on their pension benefit statements at least once every 12 months.

We have prepared this newsletter to update our readers on forthcoming compliance matters with respect to the Affordable Care Act (ACA) of 2010, as well as inform them of certain increased penalties relative to ACA.

Last month, the IRS announced increases to the User Fees related to certain requests for letter ruling and determination letter requests.

The Setting Every Community Up for Retirement Enhancement Act of 2019 (the SECURE Act) amended the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code (IRC) to establish a new type of multiple employer plan (MEP) called a “pooled employer plan” (PEP) that must be administered by a person called a “pooled plan provider” (PPP).

On September 2, 2020, the IRS issued guidance in the form of questions and answers interpreting several miscellaneous provisions of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) and the Bipartisan American Miners Act of 2019 (Miners Act) affecting qualified retirement plans, 403(b) plans and Individual Retirement Accounts (IRAs).

The Internal Revenue Service recently announced that anyone who already took a required minimum distribution (RMD) in 2020 from certain retirement accounts now has the opportunity to roll back those funds into a retirement account following the CARES Act RMD waiver for 2020.

In an earlier Employee Benefit Plans Alert, we provided information on IRS guidance pertaining to Health Reimbursement Arrangements (HRAs) and Cafeteria Plans.