25.07.2024 01.57 CDT
New IRS guidance clarifies how employees can access their funds in an emergency.
New Rules for Emergency Distributions
New IRS guidance clarifies provisions of SECURE 2.0 allowing employees to access their funds in an emergency.
The IRS has recently released Notice 2024-55, providing guidance on provisions of SECURE 2.0 dealing with certain emergency distributions from retirement plans and distributions to victims of domestic abuse.
12.01.2024 02.55 CST
IRS Guidance on recent legislation helps employers start planning for next few years.
SECURE Act Provisions Start Taking Shape
As we enter 2024, employers (and their providers) are starting to get more IRS guidance on recent pension legislation.
The IRS ended 2023 with new guidance on the SECURE Act and SECURE 2.0. These included proposed regulations on the new requirements for long-term part-time employees and a grab-bag of Q&As on miscellaneous provisions of SECURE 2.0. Overall, the IRS guidance does not contain dramatic surprises—but it does help employers and their providers start planning for the next few years.
20.06.2023 11.29 CDT
Plan sponsors can now take advantage of new opportunities to self-correct errors.
Since 1991 the IRS has had a program allowing plan sponsors to correct administrative errors and, over the years the IRS has expanded the availability of this program and the ability to “self-correct” errors without an IRS filing. SECURE 2.0 took this trend--of expanding the availability of self-correction--to the next level by directing the IRS to allow self-correction for a broad range of “inadvertent” errors. IRS Notice 2023-43 clarifies the rules for this expanded self-correction opportunity.
25.01.2019 06.47 CST
Notice 2018-95 offers relief to employers who have failed to properly administer the “once-in-always-in” rule for 403(b) plans. However, the Notice also serves as a reminder for potential plan design opportunities.
IRS Offers Relief for Certain 403(b) Eligibility Failures
Section 403(b) plans operate much like their cousins, 401(k) plans. But, there are some key differences.
Notice 2018-95, issued by the IRs in December, provides very specific and targeted relief for retirement plans under Code Section 403(b). who failed to properly administer certain 403(b) eligibility rules. However, equally valuable to 403(b) sponsors, is the clarification contained in the Notice on how these eligibility rules are supposed to be administered.