The document summarizes key changes and updates related to employee benefit plans from recent legislation and IRS guidance. It discusses revisions to the Employee Plans Compliance Resolution System (EPCRS) in Revenue Procedure 2019-19, including expanded self-correction options. New hardship distribution rules from the Bipartisan Budget Act of 2018 are explained, such as eliminating the loan requirement. Upcoming deadlines for defined benefit and contribution plan amendments are noted. Provisions of the proposed SECURE Act addressing retirement plans are highlighted.
For the complete budget process, you can watch the video entitled “The Philippine Budget Process” or click the link below
https://www.youtube.com/watch?v=OUbUC94oa6s
Don’t Miss Out on the Newly Supercharged Employee Retention Tax CreditCBIZ, Inc.
The Employee Retention Tax Credit (ERTC) was established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, but limitations on its availability tempered interest in the relief measure. That is about to change, thanks to significant changes made on Dec. 27, 2020, by the Consolidated Appropriations Act, 2021. Employers should immediately begin analyses to identify and calculate the value of retroactive or prospective ERTC benefits. Learn more.
DBM showcase on PFM: Putting PFM reforms into action in the budgeting system ...OECD Governance
This presentation was made by Janet Abuel, Philippines, at the 10th OECD-Asian Senior Budget Officials Annual Meeting held in Bangkok, Thailand, on 18-19 December 2014.
TriStar Pension Consulting presents changes to Retirement plans like 401(k)'s in the year 2015 along with pending legislation. Find out what is happening in Washington and how it will affect your Retirement Plan.
For the complete budget process, you can watch the video entitled “The Philippine Budget Process” or click the link below
https://www.youtube.com/watch?v=OUbUC94oa6s
Don’t Miss Out on the Newly Supercharged Employee Retention Tax CreditCBIZ, Inc.
The Employee Retention Tax Credit (ERTC) was established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, but limitations on its availability tempered interest in the relief measure. That is about to change, thanks to significant changes made on Dec. 27, 2020, by the Consolidated Appropriations Act, 2021. Employers should immediately begin analyses to identify and calculate the value of retroactive or prospective ERTC benefits. Learn more.
DBM showcase on PFM: Putting PFM reforms into action in the budgeting system ...OECD Governance
This presentation was made by Janet Abuel, Philippines, at the 10th OECD-Asian Senior Budget Officials Annual Meeting held in Bangkok, Thailand, on 18-19 December 2014.
TriStar Pension Consulting presents changes to Retirement plans like 401(k)'s in the year 2015 along with pending legislation. Find out what is happening in Washington and how it will affect your Retirement Plan.
What did the Union Budget 2022 Do for Charitable Organisations?aakash malhotra
The Union Budget 2022 proposed a host of key changes for charitable organisations. The taxation framework received an overhaul. The administrative framework also saw significant modifications. Find out the key proposals here and figure out how they impact your organisation and stakeholders.
Hawaii Gov. David Ige's budget director, Wes Machida, delivered the administration's financial plan to lawmakers Jan. 21, 2015, at the Capitol auditorium.
COVID-19: The Impact on Retirement PlansCBIZ, Inc.
As COVID-19 continues to impact the stock market and organizations around the world, we understand that you have concerns about how recent market fluctuations may affect your retirement plan. What you should know is that there are options you may have to minimize these effects on your business and your employees. We’ve developed a summary of these complex issues in this whitepaper. You will learn about:
- Impacts to both defined benefit plans and defined contribution plans
- Potential options for your organization to minimize negative effects on your business and your employees
- Legislative updates from the CARES Act
- Important considerations and actions to take next
CBIZ Manufacturing & Distribution Quarterly Newsletter - Feb 2020CBIZ, Inc.
Timely articles on topics of interest to manufacturers and distributors including - the expansive SECURE Act (retirement legislation), Benefits Renewal (six questions to ask), Risk (rethinking your profile for the new decade), the Hardening Insurance Market (what to expect, how to prepare) and the NAM Talks Trade - plus quick links to complimentary guides and webinars.
What did the Union Budget 2022 Do for Charitable Organisations?aakash malhotra
The Union Budget 2022 proposed a host of key changes for charitable organisations. The taxation framework received an overhaul. The administrative framework also saw significant modifications. Find out the key proposals here and figure out how they impact your organisation and stakeholders.
Hawaii Gov. David Ige's budget director, Wes Machida, delivered the administration's financial plan to lawmakers Jan. 21, 2015, at the Capitol auditorium.
COVID-19: The Impact on Retirement PlansCBIZ, Inc.
As COVID-19 continues to impact the stock market and organizations around the world, we understand that you have concerns about how recent market fluctuations may affect your retirement plan. What you should know is that there are options you may have to minimize these effects on your business and your employees. We’ve developed a summary of these complex issues in this whitepaper. You will learn about:
- Impacts to both defined benefit plans and defined contribution plans
- Potential options for your organization to minimize negative effects on your business and your employees
- Legislative updates from the CARES Act
- Important considerations and actions to take next
CBIZ Manufacturing & Distribution Quarterly Newsletter - Feb 2020CBIZ, Inc.
Timely articles on topics of interest to manufacturers and distributors including - the expansive SECURE Act (retirement legislation), Benefits Renewal (six questions to ask), Risk (rethinking your profile for the new decade), the Hardening Insurance Market (what to expect, how to prepare) and the NAM Talks Trade - plus quick links to complimentary guides and webinars.
In the wake of the Multiemployer Pension Reform Act of 2014 (the "MPRA"), companies that participate in multiemployer pension funds should take note of recent developments impacting their withdrawal liability risks and the collective bargaining strategies with their unions. Employers should also review their pension fund's latest financial information, which most plans have recently updated. This webinar will provide an overview of how the post-MPRA landscape for troubled multiemployer pension plans has continued to evolve, as well as a handy "road map" for employers to use to better manage the many risks that come with participation in these funds.
Yet another busy month with five major superannuation reforms introduced to Parliament. The Bills relate to promoting Member Outcomes, Housing Affordability, Independent Directors on Trustee Boards, Complaints or Dispute Resolution, and extending Choice of Fund.
Presentation by Damien Moore, CBO’s Assistant Director for Financial Analysis, at the Research Seminar in Quantitative Economics.
The Pension Benefit Guaranty Corporation (PBGC) is a government-owned corporation responsible for insuring the benefits of 41 million people who participate in defined benefit pension plans provided by private employers. About 10 million of those participants are covered by plans offered by groups of employers; such plans are insured by PBGC’s multiemployer program. That program has drawn increased scrutiny from policymakers in recent years because of the high likelihood that it will not be able to meet all of its insurance obligations, potentially causing participants to lose insured benefits or putting pressure on the government to provide PBGC with greater federal resources. CBO has projected the claims on PBGC’s multiemployer program—which are likely to be relatively small in the coming decade but are projected to be much larger in the following decade—and has analyzed options for improving the program’s finances.
Congrats on surviving this year of multiple changes in the Employee Benefits industry. With more legal changes anticipated in 2020, we want to help you not only review your compliance readiness for the recently implemented laws, but help you and your team build a solid 2020 Watchlist for the new year.
Both focusing on 2019 year-end and looking ahead to 2020, this webinar will cover:
Multiple-employer plans -- What new guidance means for your business
New correction options under the IRS Employee Plans Compliance Resolution System, plus the most common 2019 plan errors we saw and how to fix them
Hardship distributions and participant loans -- Imminent deadlines for amendments and updated tips
New health reimbursement options -- How useful are they?
How to treat coupons used by plan participants to help pay for prescription drugs
New Medicare Secondary Payer reporting rules apply January 2020 -- What should you do?
Election-year politics are dominating legislative action this year as both parties lay down
policy agendas for 2017 and beyond. President Obama and the Republican leaders of Congress are offering competing plans on how to reform the US tax system and
to promote other policies intended to increase economic growth and make American companies more competitive. At the same time, both Democratic and Republican candidates seeking their party’s presidential nomination are advancing tax reform plans.
Military Commissions details LtCol Thomas Jasper as Detailed Defense CounselThomas (Tom) Jasper
Military Commissions Trial Judiciary, Guantanamo Bay, Cuba. Notice of the Chief Defense Counsel's detailing of LtCol Thomas F. Jasper, Jr. USMC, as Detailed Defense Counsel for Abd Al Hadi Al-Iraqi on 6 August 2014 in the case of United States v. Hadi al Iraqi (10026)
Car Accident Injury Do I Have a Case....Knowyourright
Every year, thousands of Minnesotans are injured in car accidents. These injuries can be severe – even life-changing. Under Minnesota law, you can pursue compensation through a personal injury lawsuit.
NATURE, ORIGIN AND DEVELOPMENT OF INTERNATIONAL LAW.pptxanvithaav
These slides helps the student of international law to understand what is the nature of international law? and how international law was originated and developed?.
The slides was well structured along with the highlighted points for better understanding .
Synopsis On Annual General Meeting/Extra Ordinary General Meeting With Ordinary And Special Businesses And Ordinary And Special Resolutions with Companies (Postal Ballot) Regulations, 2018
In 2020, the Ministry of Home Affairs established a committee led by Prof. (Dr.) Ranbir Singh, former Vice Chancellor of National Law University (NLU), Delhi. This committee was tasked with reviewing the three codes of criminal law. The primary objective of the committee was to propose comprehensive reforms to the country’s criminal laws in a manner that is both principled and effective.
The committee’s focus was on ensuring the safety and security of individuals, communities, and the nation as a whole. Throughout its deliberations, the committee aimed to uphold constitutional values such as justice, dignity, and the intrinsic value of each individual. Their goal was to recommend amendments to the criminal laws that align with these values and priorities.
Subsequently, in February, the committee successfully submitted its recommendations regarding amendments to the criminal law. These recommendations are intended to serve as a foundation for enhancing the current legal framework, promoting safety and security, and upholding the constitutional principles of justice, dignity, and the inherent worth of every individual.
How to Obtain Permanent Residency in the NetherlandsBridgeWest.eu
You can rely on our assistance if you are ready to apply for permanent residency. Find out more at: https://immigration-netherlands.com/obtain-a-permanent-residence-permit-in-the-netherlands/.
A "File Trademark" is a legal term referring to the registration of a unique symbol, logo, or name used to identify and distinguish products or services. This process provides legal protection, granting exclusive rights to the trademark owner, and helps prevent unauthorized use by competitors.
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2. www.FridayFirm.com
Revenue Procedure 2019-19 is the current
Revenue Procedure that governs the
Employee Plans Compliance Resolution
System Program (“EPCRS”). Rev. Proc.
2019-19 is effective as of April 19, 2019.
The prior Rev. Proc. For EPCRS purposes
was Rev. Proc. 2018-52.
Rev. Proc.
2019-19 –
Current
EPCRS
Guidance
3. www.FridayFirm.com
Voluntary Correction Program
(“VCP”)
- Prior to the VCP Program (which was the “forerunner” of the
EPCRS Program) if a Qualified Plan was not operated in
conformity with the general Plan qualification rules, the Plan ran
the risk of being disqualified. Disqualification was disastrous as it
resulted in:
- Disallowance of employer contribution deductions.
- Current taxation of earnings within the tax-exempt trust.
- Current income taxation of employees account balance/ accrued benefit.
- As a result of the VCP Program a qualified Plan could correct
whatever qualification failures were present and avoid Plan
disqualification.
4. www.FridayFirm.com
- A qualified Plan that has one or more Plan qualification defects
may correct these failures in accordance with the guidelines
set out under EPCRS and if formally submitted to the IRS will
receive in exchange thereof a Compliance Statement from the
IRS. The receipt of a Compliance Statement from the IRS
preserves the tax qualified status of the Plan.
Effect of EPCRS
5. www.FridayFirm.com
1. Self Correction Program (“SCP”) –
Correction of certain Plan failures can be
made without contacting the Internal
Revenue Service (“IRS”) or paying a
user fee.
2. Voluntary Correction Program (“VCP”) –
Formal corrections are made and a
Compliance Statement is received from
the IRS that approves such corrections.
3. Audit Closing Agreement Program
(“Audit CAP”) – Correction procedures
that are available as a result of one or
more defects discovered during the
middle of a Plan audit.
Three
Correction
Programs
Within
EPCRS
6. www.FridayFirm.com
Allowance of Self Correction by Plan
Amendment Under Rev. Proc. 2019-19
- Self Correction by Plan Amendment as to certain Plan document failures
are now allowed.
- Plan must have a current Favorable Determination Letter or a current IRS
Opinion Letter.
- The Amendment to the Plan must occur no later than the close of the
second Plan Year following the Plan Year in which the amendment should
have been adopted.
- Corrective amendments to resolve demographic failures that were not
timely adopted are not eligible for SCP.
- The late adoption of discretionary amendments is not considered a Plan
document failure.
7. www.FridayFirm.com
A Plan Sponsor may self correct for an operational failure of:
- The Plan amendment increases the benefits, rights or features (“BRF”)
of all Participants.
- The BRF is available to all employees.
- The increase is permissible under the Code and follows general
correction principals.
Allowance of Self Correction by Plan
Amendment for Operational Failures
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Self Correction of Plan Loans
- Loan in default may be treated as a deemed distribution in the
year of correction (as opposed to year of failure).
- A defaulted loan may be corrected with: (i) a lump sum catch-
up payment; (ii) re-amortized payments over the remaining life
of the loan; or (iii) a combination of the two.
- Failure to obtain spousal consent (if required) can be obtained
after the fact.
- A Plan may be amended retroactively to conform the Plan’s
terms to the Plan’s operations as far as the number of Plan
loans.
9. www.FridayFirm.com
A failure to obtain spousal consent to a distribution other than an
annuity can be obtained with retroactive consent.
Self Correction of Failures to
Obtain Spousal Consent
10. www.FridayFirm.com
The Tax Cuts and Jobs Act of 2017 (“TCJA”), the Bipartisan
Budget Act of 2018 (“BBA”) and recently issued final regulations
from the Department of Treasury have all made changes to the
rules governing Hardship distributions.
Changes in the Hardship
Distribution Rules
11. www.FridayFirm.com
Newly Created 7th Safe Harbor Event
Gives Rise to a Hardship Distribution
Prior to recently issued regulations a hardship distribution was
considered to be on account of an “immediate and heavy need”
if it pertained to:
- Medical expenses.
- The purchase a principal residence.
- The payment of tuition, room and board and educational fees.
- The payment is needed to prevent eviction or foreclosure on the
Participant’s principal residence.
- Funeral expenses.
- Expenses for the repair of damage to a Participant’s principal
residence.
12. www.FridayFirm.com
Newly Created 7th Safe Harbor Event
Gives Rise to a Hardship Distribution
As a result of the recent regulations, an amount distributed to
pay for any expenses and/or losses incurred by an Employee on
account of a disaster declared by the Federal Emergency
Management Agency (“FEMA”) as long as the Employee’s place
of employment or residence at the time of the disaster was
located in a FEMA area is deemed to be on account of an
immediately and heavy need.
13. www.FridayFirm.com
- Effective as of January 1, 2019:
- the exhaustion of all Plan loans prior to taking a hardship distribution is no
longer required.
- suspension of 401(k) deferrals and/or after tax contributions for 6 months is
no longer applicable.
- “Earnings after 1988” on elective deferral balances are eligible for hardship
distribution treatment.
- a Hardship distribution can be made from any vested account (including
Safe Harbor Contribution Accounts).
- Amendments must occur no later than December 31, 2021.
Changes to the Hardship Distribution
Rules as a Result of the BBA
14. www.FridayFirm.com
Upcoming Amendment & Restatement
Deadlines for Qualified Retirement Plans
- All Qualified Retirement Plans must generally be amended and
restated every 6 years.
- For Defined Benefit Pension Plans, the amendment and
restatement deadline is April 30, 2020.
- For Defined Contribution Plans that have an IRS Opinion Letter
dated March 31, 2014, as informally indicated by the IRS this
deadline is likely to be between August 1, 2020 and July 31, 2022.
- For certain defined contribution plans that are individually designed
and have been merged together a new favorable determination
letter can be obtained. See Rev. Proc. 2019-20
15. www.FridayFirm.com
Plan Changes as Part of the Upcoming
DC Plan Amendment & Restatement
- The definition of the term “Spouse” will be revised as set forth
in United States v. Windsor.
- Consider adding an “In Plan Roth Rollover” feature as a result
of the American Taxpayer Relief Act of 2012 (“ATRA”) and in
accordance with IRS Notice 2013-74.
- Final Department of Labor claims procedures for disability
determinations as to the distribution of benefits will be included
in the claim procedures within the Plan.
- Consider amending the Plan to incorporate required and/or
optional Hardship Distribution rule changes.
16. www.FridayFirm.com
- Consider Potential employer contribution formula changes.
- Cross Tested Formula.
- Triple Stack Match Formula.
- Coordination of an Employer Matching Contribution formula
with the repayment of Student Loans. PLR 201833012, which
was issued on August 17, 2018 and only applies to the
taxpayer requesting such a ruling, allows for such a provision.
Plan Changes as Part of the Upcoming
DC Plan Amendment & Restatement
17. www.FridayFirm.com
Setting Every Community Up for Retirement Enhancement Act
(SECURE Act) – Broad Proposed Legislation as to Retirement
Plan Reform
- Was previously passed in the House in May 2019 by a vote of 417-3.
- Is the first real major retirement plan legislation since the Pension
Protection Act of 2006.
- The Senate has a similar bill called the Retirement Enhancement
Securities Act (“RESA”).
SECURE Act
18. www.FridayFirm.com
- Currently sitting in limbo in the Senate. It is anticipated that such
legislation will be approved by the Senate either via:
- As an attachment to another larger spending bill.
- Unanimous Consent.
- Floor Time and Debate.
SECURE Act
19. www.FridayFirm.com
SECURE
Act
Out of the 29
new Provisions
Contained
Within the
SECURE Act 7
Provisions to be
Aware of are as
Follows:
1. Expansion of Small Employer access to
Retirement Plans via “multiple employer plans.”
2. Allow for more annuity options within a 401(k)
Plan.
3. Pushes back required minimum distributions
(“RMDs”) to 72 from 70½. RESA would push back
RMDs to 75.
4. Removes the age limit of 70½ for purposes of
contributing to a traditional IRA.
5. Distributions of up to $5,000 can be used for the
birth or adoption of a child and would not be
subject to the 10 percent early distribution tax.
6. Defined contribution plans must deliver a “lifetime
income disclosure” Notice to Participants at least
once every 12 months.
7. Removal of the “Stretch IRA.”
20. www.FridayFirm.com
www.FridayFirm.com
400 West Capitol Ave. Suite 2000 I Little Rock, AR 72201
3425 North Futrall Dr. Suite 103 I Fayetteville, AR 72703
3350 South Pinnacle Hills Pkwy. Suite 301 I Rogers, AR 72758
DAVID M. GRAF
Employee Benefits
501-370-1540
graf@fridayfirm.com
www.fridayfirm.com/attorney/graf