Articles — Ascensus

IRS Provides Further RMD Transition Relief Under the SECURE Act

On April 16, 2024, the IRS issued Notice 2024-35 to provide additional transition relief for certain specified RMDs for 2024.

Reduce Form 5498 Reporting Errors with this Simple Step

As you’re preparing to send your Form 5498 files to your vendor for printing, you’ve probably caught some reporting errors as you audit the files. But mistakes happen. And those errors that inevitably slip through are likely those that keep you up at night. It’s not fun getting a phone call or visits from upset clients after they received an incorrect Form 5498.

IRAAscensusApril 18, 2024IRA, Business Insights, Reporting, Regulations, Traditional IRA, Roth IRA, Form 5498

Washington Pulse: DOL Releases Proposed Regulations for Automatic Portability Transactions

The Department of Labor (DOL) has released proposed regulations related to the implementation of section 120 of the SECURE 2.0 Act (SECURE 2.0).

529 Plan-to-Roth IRA Rollovers

The SECURE Act of 2022—also known as SECURE 2.0—made many changes to tax-advantaged savings arrangements. Not all SECURE 2.0 provisions took effect immediately. One new provision that takes effect in 2024 is the option for certain assets in 529 higher education savings plans to be rolled over to Roth IRAs.

expert, IRAAscensusApril 18, 2024Roth IRA, IRS, Contributions, IRA

Understanding the New Eligibility Requirements for Long-Term, Part-Time Employees

Over the past five years Congress has passed extensive legislation to encourage more people to save for their retirement. One obstacle many people face in this endeavor is not meeting eligibility requirements to participate in an employer-sponsored 401(k) plan. This hurdle is now easier to overcome for people who have worked on a part-time basis for their long-term employer.

Washington Pulse: DOL Releases Final Rule Clarifying Employee or Independent Contractor Status

The Department of Labor (DOL) issued a final rule to assist employers when determining whether a worker is considered an employee or an independent contractor under the Fair Labor Standards Act (FLSA).

SECURE 2.0 Act Adds New Penalty Tax Exception for Terminal Illness

One new penalty tax exception is for the terminal illness of a retirement plan participant or IRA owner. The provision applies to terminally ill distributions made after December 29, 2022. The rationale for this new exception is the potential need of an individual to use retirement funds for expenses related to a terminal illness.

Ascensus 800 Consulting Extended Hours

To assist Ascensus clients during the busy contribution and tax season, the 800 Consulting telephone lines will be open for extended hours.

Don’t Get Tripped Up by Tricky IRA Deadlines

There are many deadlines to keep track of throughout the year. Although it’s generally up to clients to track these deadlines, they may come to you for guidance. This article will cover some common questions surrounding certain IRA-related deadlines.

expert, IRAAscensusMarch 21, 2024Compliance & Operations, Beneficiary, IRA, Traditional IRA, Distribution

SECURE 2.0 Provides New Financial Incentive Option for Encouraging Employee Participation

Today, many employers offer long-term incentives, such as employer matching contributions, to boost participation in their retirement plans. But, as of plan years beginning after December 29, 2022, a small immediate financial incentive can also be offered to entice those not deferring in their employer’s 401(k) or 403(b) plan to start contributing to the plan. Inevitably, this has generated questions—the most popular of which we will answer here.

IRS Releases Final Guidance on Penalty Exceptions for Failure to File Correct Information Returns or Furnish Payee Statements

The Internal Revenue Service (IRS) has released final regulations that provide de minimis error safe harbor exceptions to penalties for failure to file correct information returns or furnish correct payee statements.

SECURE 2.0 Expands Roth Options for SEP and SIMPLE Plans

Before SECURE 2.0’s enactment, SEP and SIMPLE IRA plan contributions had to be made as pre-tax contributions, but now employers may allow employees to elect to have contributions into a SEP or SIMPLE IRA made as Roth contributions.

IRA, News BriefAscensusMarch 21, 2024SEP Plan, SIMPLE IRA Plan, Withholding, Roth IRA, IRA, IRS, Business Insights

SECURE 2.0 Expands Roth Options for Employer-Sponsored Retirement Plans

The SECURE 2.0 Act contains provisions that allow individuals to place more of their assets into Roth accounts. Implementing these provisions requires significant retooling for employers, third-party providers, and financial organizations.

Mid-Year Termination of SIMPLE IRA

Employers may now terminate a SIMPLE IRA and replace it with a safe harbor plan.

IRAAscensusMarch 21, 2024SIMPLE IRA Plan, IRA, Business Insights

Contribution Limits Increased for SIMPLE Plans

Employers that sponsor a SIMPLE plan may allow increased salary deferral limits for their employees, starting in tax year 2024.

IRAAscensusMarch 21, 2024SIMPLE IRA Plan, IRA, Business Insights, Contribution, Compliance & Operations

IRS Offers Details on SECURE Act 2.0 Roth SEP and SIMPLE Provisions

Given the many changes to the retirement landscape brought about by the SECURE 2.0 Act legislation, it would be difficult to identify any one provision that has the greatest potential to impact retirement savers. But, certainly, one strong candidate would be the new ability to make Roth contributions to simplified employee pension (SEP) and savings incentive match plans of small employers (SIMPLE) IRA retirement plans.

IRAAscensusFebruary 15, 2024Compliance & Operations, SEP Plan, SIMPLE IRA Plan, Roth IRA, Retirement Plan, Regulations

IRS Releases Guidance on SECURE 2.0 Provisions

The Internal Revenue Service (IRS) has released Notice 2024-02, which provides guidance in a question and answer format regarding several provisions of the SECURE 2.0 Act of 2022 (SECURE 2.0). This article summarizes the guidance contained in Notice 2024-02.

Understanding the 10-Year Rule

Beginning with account owner deaths in 2020 and later, the SECURE Act of 2019 made significant changes to the rules on how qualified plan beneficiaries distribute their inherited assets. One significant provision prevents most nonspouse beneficiaries from “stretching” out distributions and taxation over their life expectancy.