Documents & Amendments — Articles

Employee Breaks-in-Eligibility Service Are Inevitable. Here's How to Handle Them.

Just as important for an employer choosing plan service requirements is considering when an employee will experience a break in eligibility service. Breaks in service—leaving that employer, in other words—can potentially delay when an employee becomes a participant, or resumes participation if he or she was an eligible participant before incurring breaks in service.

Now that Cycle 3 is Over, What's Next?

The IRS requires that all qualified retirement plans be established and supported by a formal written document that complies with the Internal Revenue Code. Employers may choose to use a pre-approved document offered by a document sponsor, like Ascensus.

Retroactive Amending to Deny HCE Safe Harbor Contributions: When, If, and How

Employers with qualified retirement plans cannot disproportionately favor highly compensated employees (HCEs). This basic principle may lead to a misconception that no issues would result from implementing changes that negatively affect only HCEs.

IRS Extends Remedial Amendment Period for CARES Act

The IRS issued Notice 2022-45, which extends the deadline for amendments to retirement plans and individual retirement arrangements (IRAs) to adopt some provisions relating to distributions and loans under the CARES Act.

IRS Extends Remedial Amendment Period for SECURE Act, Miners Act, and Certain Provisions of CARES Act

The IRS issued Notice 2022-33, which extends the deadline for amendments to retirement plans and Individual Retirement Arrangements (IRAs) to adopt provisions enacted under the SECURE Act, the Miners Act, and some provisions under the CARES Act.

Amending IRA Documents: Why, When, and How

Part of maintaining a compliant IRA program is to amend your IRA documents when required. But what does it mean to amend? Why do you have to amend your IRA documents and when? How do you do it? Knowing the answers to those questions may be helpful when faced with what may seem like an overwhelming task.

Get Ready: New IRA Model Documents Are Coming

When the IRS releases new IRA model documents, all IRA trustees, custodians, and issuers will most likely be required to amend to the new model document or to use the new IRS language in their prototype documents. Before that happens, consider reviewing your existing IRA plan agreement to ensure that it still makes sense for your organization.

IRA Plan Agreement: Model vs. Prototype

With the IRS expected to release new IRA model documents soon, you may want to revisit the decision to use either the model document or a prototype document as your required IRA plan agreement. Knowing the difference between the model and prototype, and the pros and cons of both, may help determine which one is best for your organization.

Coverdell ESAs Come with Different Roles

What are the different roles commonly seen on a Coverdell ESA application? When can the designated beneficiary of an ESA be changed? When can the responsible individual of an ESA be changed?

New IRA Documents May Be Just Around the Corner

The IRS has indicated that it plans to release new IRA model documents for each type of IRA. When that happens, all IRA trustees, custodians, and issuers will be required to use either the new model documents or the new listing of required modifications if using a prototype document.

Establishing an HSA

With benefits enrollment season soon underway, your organization may see an uptick during this time of year in potential clients who are looking to set up HSAs. Be ready to assist them—and your staff—by knowing and understanding the requirements for establishing an HSA.

HSAAscensusSeptember 17, 2020Compliance & Operations, HSA, Documents & Amendments, Eligibility

On the Horizon, Cycle 3 Restatement

Qualified retirement plans—including profit sharing, money purchase, and 401(k) plans—receive special tax benefits by meeting the requirements set forth by the IRS. Employers or plan sponsors are responsible for restating their plan documents to avoid a plan qualification failure.

Employer Plan, expertAscensusAugust 20, 2020Documents & Amendments, Qualified Retirement Plan

Know the Rules If Changing a Safe Harbor Plan Mid-Year

Is it possible to reduce or suspend 401(k) or 403(b) safe harbor contributions mid-year? Can a safe harbor 401(k) plan be amended for other plan provisions mid-year? Is it possible to add safe harbor provisions mid-year?

403(b) Plan Restatement Is Extended Because of Pandemic

What is the 403(b) plan restatement? What is the deadline for restating 403(b) plan documents? What if an employer is unable to restate its 403(b) document timely?

IRS Retirement Plan Correction Program Expanded

Why are the recent changes to the IRS retirement plan correction program important? What are the changes to the EPCRS?

IRS Provides Welcome Relief from High VCP Fees

The IRS has expanded the availability of self-correction options under the Employee Plans Compliance Resolution System in a move to increase plan compliance and reduce costs for employers.

IRS Expands Determination Letter Program for Certain Retirement Plans

The IRS has provided guidance that expands its determination letter program with the addition of two plan categories that plan sponsors can use to request a determination letter other than when the plan is established or terminated.

The Right Way to Establish an IRA

When establishing an IRA, it can be easy to overlook a step or two, which could lead to compliance issues and jeopardize the tax-deferred nature of the account. Follow these steps to help ensure that your organization is setting up IRAs the right way.