Articles — Ascensus

IRS Reminds Businesses of SECURE 2.0 Impacts on Form W-2

The Internal Revenue Service is reminding businesses who sponsor a retirement plan that certain provisions of SECURE 2.0 that became effective in 2023 may impact their Form W-2 reporting requirements.

Are You in Your 70s? The What, Who, and How of Delaying RMDs

Every year, retirement savers in their 70s are faced with either starting or delaying their required minimum distributions (RMDs): whether it be from an employer-sponsored retirement plan or an individual retirement arrangement (IRA). The required beginning date (RBD) determines how long an account owner can delay taking an RMD. As different RBDs may apply, the topic is notoriously confusing. But we are here to help.

Escheatment: When to Send IRA Assets to the State

The very nature of IRAs can make them more susceptible to becoming dormant. For example, because IRAs are meant to provide income during retirement, some individuals may keep their IRAs open for years with little to no activity. Other individuals may forget that they have an IRA or may not know that they have one (e.g., IRA beneficiaries or missing plan participants).

expert, IRAAscensusMay 16, 2024IRA, IRS, Roth IRA, Traditional IRA, Q&A

IRS Reminds Businesses of SECURE 2.0 Impacts on Form W-2

The IRS is reminding businesses who sponsor a retirement plan that certain provisions of SECURE 2.0 that became effective in 2023 may impact their Form W-2 reporting requirements.

IRS Releases FAQs on SECURE 2.0 Disaster Relief

The IRS has released a set of frequently asked questions (FAQs) regarding rules for distributions from retirement plans and IRAs under Section 331 of SECURE 2.0 for individuals affected by federally declared major disasters.

IRA, Employer Plan, News BriefAscensusMay 16, 2024IRA, IRS, Disaster, Distribution, Qualified Retirement Plan

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

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

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 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

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.

Is Your Organization on Track to Meet These IRA, HSA, and Coverdell ESA Deadlines?

It's a brand-new year filled with fresh reporting deadlines, and perhaps a good time to take note on whether your financial organization is on track to meet these obligations—or to refresh your memory on when specific deadlines occur. First quarter is always a busy reporting season.