Articles — Ascensus

DOL Fiduciary Rule Vacated by 5th Circuit Court of Appeals

The 5th Circuit U.S. Court of Appeals has reversed a district court’s 2016 ruling in favor of the Department of Labor (DOL) fiduciary regulations, stating that the DOL exceeded its statutory authority in issuing its fiduciary regulations.

IRA, Employer PlanAscensusApril 19, 2018Fiduciary, DOL, Regulations

Qualified Retirement Plan Creditor Protection

Are assets in a qualified retirement plan protected from creditors? How are owner-only plans, such as an Individual(k)™ plan, impacted? What is the effect on creditor protection if QRP assets are rolled over to an IRA?

Budget Act Broadens Disaster Relief, Rewrites Hardship Rules, and More—Retirement Plan Amendments Expected

Budget Act of 2018 makes important changes to retirement plans and IRAs, including tax relief for California wildfire victims, hardship distribution rules relaxed, and changes to portability rules.

Retirement Plan Beneficiary Designations

Can a participant name someone other than her spouse as the designated beneficiary for her qualified retirement plan? If a participant has a last will and testament, should the plan administrator distribute plan assets to the person named on the beneficiary designation or to the person named in the last will and testament?

IRS Announces When to Expect DB Plan Opinion and Advisory Letters

The IRS released an announcement in March that describes when it expects to begin issuing opinion and advisory letters for defined benefit (DB) pension plans.

Employer PlanAscensusMarch 15, 2018Retirement Plan, IRS, Documents & Amendments, Guidance & Legislation

IRS Says 2017 Hurricane Distributions Should Be Reported on Form 1099-R as Penalty Tax Exception

The IRS announced a late change for 2017 Form 1099-R reporting of IRA and retirement plan qualified hurricane distributions. The IRS is not, however, requiring reporting corrections.

Employer Plan, IRAAscensusFebruary 15, 2018News, Retirement Plan, IRA, Disaster, Form 1099-R, Reporting

Who is a retirement plan fiduciary?

What does it mean to be a fiduciary of a plan? Who are fiduciaries of the plan? Must a fiduciary tell participants that he is a fiduciary?

expert, Employer PlanAscensusFebruary 15, 2018Compliance & Operations, Retirement Plan, Fiduciary

IRA Recharacterizations Past, Present, and After Tax Reform

Tax reform legislation no longer allows taxpayers to undo their IRA conversions and retirement plan rollovers to Roth IRAs, which both have potential for heavy tax hits. Here’s a look at recharacterizations during this 2018 transition year.

IRA, Employer PlanAscensusFebruary 15, 2018Roth IRA, Retirement Plan, Recharacterization, Conversion, Rollover

2018 Roadmap—Be on the Lookout for These Retirement-Related Changes

The start of a new year is the ideal time to create a roadmap for the year ahead, noting retirement plan changes that may be on the horizon. Here are key items to keep watch for in 2018.

Employer PlanAscensusFebruary 15, 2018Retirement Plan, Guidance & Legislation, Regulations, Fiduciary, Tax

How the New DOL Fiduciary Rule Applies to IRAs and HSAs

The financial industry has been hearing about the Department of Labor fiduciary (conflict-of-interest) rule for several years. These rules apply to IRAs, HSAs, and Coverdell ESAs, as well as employer-sponsored retirement plans. While some aspects will not apply until mid-2019, financial organizations should fully evaluate how the rules affect their products and services.

Capture Larger Share of Rollover Market From Beneficiary Rollovers

Accepting rollovers of inherited retirement plan assets is a great way to grow IRA business. Financial organizations interested in capturing a larger share of the rollover market should encourage rollover contributions from employer-sponsored retirement plan beneficiaries.

Tax Reform Law Affects IRAs, Retirement Plans, and Other Savings Arrangements

Late in December 2017, President Trump signed tax reform legislation into law (Public Law No. 115-97) resulting in fulfillment of one of the GOP’s major 2016 campaign promises. The legislation affects employer-sponsored retirement plans and IRAs, and in some cases, other tax-advantaged savings arrangements.

Employer Plan, IRA, ESAAscensusJanuary 18, 2018News, Compliance & Operations, Congress, Tax, Retirement Plan, IRA, Guidance & Legislation

IRS Issues Reminder About Retirement Effects of Hurricane Relief Legislation

The IRS released a reminder notice in December 2017 of the tax-related relief granted by the Disaster Tax Relief and Airport and Airway Extension Act of 2017. This legislation, enacted in early October 2017, provides special options for those affected by Hurricanes Harvey, Irma, and Maria, including options specific to IRA and employer-sponsored retirement plan assets.

Retirement Plans: Qualified Domestic Relations Orders

What is the difference between a domestic relations order (DRO) and a qualified domestic relations order (QDRO)? How can the alternate payee take the awarded amount from the plan? How will the award be taxed and reported?

PBGC’s Modified Missing Participant Regulations Now Apply to DC Retirement Plans

The Pension Benefit Guaranty Corporation (PBGC) issued final regulations that modify existing guidance on missing participants and beneficiaries in terminating qualified retirement plans. The revised regulations broaden guidance to now apply to defined contribution (DC) plans, to multiemployer (union) plans covered under PBGC’s pension insurance program, and to certain other DB plans not previously covered.

Employer Plan, IRA, ESAAscensus -January 18, 2018News, Compliance & Operations, Congress, DOL, Tax, Retirement Plan, IRA, Guidance & Legislation

DOL Extends Transition Period for Key Fiduciary Rule Requirements to Mid-2019

The applicability date of several key elements of the Department of Labor (DOL) investment fiduciary guidance has been extended from January 1, 2018, to July 1, 2019. The additional 18-month transition period specifically applies to the controversial Best Interest Contract (BIC) exemption, to the “principal transactions” exemption for asset transactions between investment fiduciaries and employee benefit plans (including IRAs), and to certain proposed restrictions on annuities offered as retirement investments.

Employer Plan, IRA, ESAAscensusJanuary 9, 2018News, Compliance & Operations, DOL, IRS, Tax, Retirement Plan, IRA, Fiduciary, Guidance & Legislation

Profit Sharing Allocation Formulas

My client currently has a deferral-only 401(k) plan and is looking to add a discretionary profit sharing feature to maximize his total contributions. What are the basic allocation formula options?

expert, Employer PlanAscensus -October 5, 2017401(k) Plan, Compliance & Operations, Profit Sharing Plan, Q&A

Retirement Plan Year-End Deadlines Soon Occurring

The last three months of the year are busy months for retirement plan administrators of calendar-year retirement plans and for employers sponsoring savings incentive match plan for employees of small employers (SIMPLE) IRA plans.