Articles — Ascensus

September 30 Deadline Key to Beneficiary Distributions

Understanding how the September 30 designation date applies to beneficiary distributions is key to handling payments to beneficiaries so as not to wrongly pay out these accounts after an IRA owner or plan participant dies.

Last Chance to Recharacterize a Conversion

Recharacterizations of conversions and retirement plan-to-Roth IRA rollovers are soon to be a thing of the past. Making clients aware of this change before they convert or roll over could lessen any regret or frustration with these transactions later.

Employers Can Help Employees Pay Off Student Loans and Save for Retirement

In response to the growing financial crisis of outstanding student loan debt, some employers have found a way to help employees pay off their student loan debt and save for retirement.

What Can Be Done to Help Pass ADP/ACP Testing?

When conducting ADP and ACP testing for a plan that does not use a safe harbor 401(k) design, what techniques can be used to structure a test to enhance its chances of passing? How should a failed ADP or ACP test be corrected?

expert, Employer PlanAscensusSeptember 20, 2018Compliance & Operations, 401(k) Plan, IRS, Contribution, Distribution

2018 Forms 5498, 1099-R Come With a Few New Requirements

After a longer than usual delay, the IRS released the 2018 Form 1099-R, 5498, and the associated instructions for IRA and retirement plan transactions. The IRS explains how to handle certain retirement plan loan offsets that are allowed an extended period beyond 60 days for rollover.

Employer Plan, IRAAscensusAugust 16, 2018Reporting, IRS, Distribution, Contribution, Rollover, Loan, Form 5498, Form 1099-R

IRS Extends DC Plan Restatement Submission Period by 3 Months

The IRS announced that it is extending the submission period for opinion letters for pre-approved defined contribution (DC) retirement plans by three months.

Retirement Savings May Affect Financial Aid

Depending on the federal aid program and the financial help needed, having money in a retirement savings account may affect how much financial assistance an individual receives.

IRA, Employer PlanAscensusAugust 16, 2018Traditional IRA, Roth IRA, Retirement Plan

IRS Final Regulations Approve Forfeitures to Fund QNECs, QMACs

It’s official. The IRS has issued final regulations amending the definitions of QNECs and QMACs to allow the use of forfeitures to fund QNECs and QMACs.

403(b) Pre-Approved Plans

What is a 403(b) pre-approved plan and what is the benefit of having one? Are existing 403(b) plans required to be restated as a pre-approved plan? Is there a deadline to restate an existing plan onto a pre-approved plan?

expert, Employer PlanAscensusAugust 16, 2018403(b) Plan, Compliance & Operations, IRS, Plan Establishment, Q&A

Safe Harbor 401(k) Plan Mid-Year Amendments

Can the Safe Harbor 401(k) plan be amended mid-year to increase eligibility to a one year of service with 1,000 hours? Can an employer amend a Safe Harbor 401(k) plan mid-year to increase the safe harbor nonelective contribution?

Finally Final: Court’s Mandate Terminates DOL Fiduciary Guidance

The U.S. Fifth Circuit Court of Appeals has finally made it official—the 2016 Department of Labor (DOL) fiduciary investment advice final regulations and accompanying guidance are repealed. What Happens Next?

IRA, Employer Plan, HSA, ESAAscensusJuly 19, 2018Guidance & Legislation, Fiduciary, Retirement Plan, DOL, Washington Pulse

Retirement Plan Hardship Distribution Changes

What changes are forthcoming regarding qualified retirement plan hardship distribution rules? When are these changes effective? Is the plan document required to be amended for these changes?

Bill Would Create Commission to Advise Congress on Retirement Issues

Two Senators have introduced the “Commission on Retirement Security Act of 2018,” which is a bill that if enacted, would create a commission to study Americans’ private retirement programs and make recommendations to Congress for improvements.

IRA, Employer PlanAscensusJune 14, 2018News, Guidance & Legislation, Retirement Plan, IRA, Washington Pulse

IRS Proposed Regulations Would Require More Preparers to File Returns Electronically

The IRS has issued proposed regulations that would alter the rules for electronic filing requirements of retirement and certain tax-preferred savings account information returns, which would require more filing entities to file electronically.

IRA, HSA, ESA, Employer PlanAscensusJune 14, 2018IRS, News, Compliance & Operations, Reporting

No Simple Task—Terminating a Retirement Plan the Right Way

Properly terminating a retirement plan is not as simple as discontinuing funding and distributing the plan assets. There are a number of tasks an employer must consider and complete to properly terminate a retirement plan.

Retirement Plan Contribution Limits

Quick Reference Tool: Current contribution limits for employer-sponsored and IRA-based retirement plans.

Employer Plan, IRAAscensusJune 14, 2018

DOL Announces Non-Enforcement of its Investment Advice Fiduciary Rule

A Department of Labor bulletin announces a temporary non-enforcement policy stating that the DOL generally will not enforce the investment advice fiduciary guidance following action by the U.S. Fifth Circuit Court of Appeals to vacate its final regulations and exemptions package.

IRA, Employer PlanAscensusMay 17, 2018Fiduciary, DOL, Regulations

SEC Best Interest Standard Is Major Departure From DOL Fiduciary Guidance

The Securities and Exchange Commission (SEC) issued proposed guidance for broker-dealers and registered investment advisors who make recommendations to retail clients. Now that the DOL conflict-of-interest (fiduciary) regulations are vacated, this SEC guidance remains the standard for broker-dealers who make investment recommendations.