Articles — Ascensus

What is the difference between ERISA and non-ERISA 403(b) plans? Does ERISA apply to the 403(b) plans established by religious organizations? What are the implications of being subject to Title I of ERISA?

Employer Plan, expertAscensusNovember 17, 2021Compliance & Operations, 403(b) Plan, Q&A

How Federal Withholding Requirements Apply to IRA Distributions

Are IRA owners always allowed to waive federal withholding on IRA distributions? What are the withholding requirements for nonresident aliens? Do the withholding rules apply to Roth IRA distributions?

IRA, expertAscensusOctober 21, 2021Compliance & Operations, IRA, Traditional IRA, Roth IRA, Distribution, Withholding, Q&A

Retirement Plan Vesting and Vesting Schedules Explained

What is vesting as it relates to a defined contribution retirement plan? How is vesting applied in defined contribution retirement plans? What are the possible vesting schedules?

Employer Plan, expertAscensusOctober 21, 2021Compliance & Operations, Retirement Plan, Contribution, Distribution, Q&A

Transfers Are Nonreportable; No Such Thing as Prior-Year Conversion; 12-Month Limit Only for IRA-to-IRA Rollovers

What should your clients do if an IRA-to-IRA transfer they’ve done is reported to the IRS? Are clients allowed to do prior-year conversions? Does an IRA-to-IRA rollover after a conversion of those same assets violate the one-per-12-month rule?

IRA, expertAscensusSeptember 16, 2021Compliance & Operations, IRA, Traditional IRA, Roth IRA, Conversion, Distribution, Form 1099-R, Form 5498, Rollover, Transfer, Q&A

Understanding the Owner-Only 401(k) Plan

What is an owner-only 401(k) plan? How much can be contributed to an owner-only 401(k) plan? What makes an owner-only 401(k) plan appealing?

Employer Plan, expertAscensusSeptember 16, 2021Compliance & Operations, 401(k) Plan, Contribution, Eligibility, Q&A

Life Expectancy Payments as a Beneficiary Distribution Option

What are beneficiary life expectancy payments and how are they calculated? Whose distribution period do we use? Are life expectancy payments an option for all beneficiaries?

expert, IRAAscensusAugust 19, 2021Compliance & Operations, IRA, Beneficiary, Distribution, Q&A

Sorting Out Hardship Distributions

Confused about the rules for hardship distributions from employer-sponsored retirement plans after the recent legislative and regulatory changes? What changes were made to the safe harbor hardship distribution standard? Can hardship distributions be taken from any asset source in the plan?

Employer Plan, expertAscensusAugust 19, 2021Compliance & Operations, Retirement Plan, Distribution, Eligibility, Q&A

Post-RMD Age Contributions and Qualified Charitable Distributions

Can IRA owners who are age 72 or older and still working offset their required minimum distributions by the amount of IRA contributions they make? Do IRA owners now have to be age 72 or older to take qualified charitable distributions?

Eligible Rollover Distributions

What is an eligible rollover distribution? What are the tax consequences if an eligible rollover distribution is rolled over? Are there any eligible rollover distributions that may be rolled over beyond the 60-day window?

Marital or Dependent Status May Affect HSA Contribution Limit, Qualified Medical Expenses

What is the maximum amount an unmarried couple with family HDHP coverage can contribute to their HSAs? Can a child listed as a dependent for HDHP coverage purposes but not claimed as a tax dependent still use HSA assets to pay medical expenses? How does divorce affect the HSA contribution limit?

HSA, expertAscensusJune 17, 2021Compliance & Operations, HSA, Contribution, Distribution, Eligibility, Q&A

Spousal Consent Requirements Differ Between Retirement Plans and IRAs

Does a married plan participant need to obtain spousal consent when requesting a qualified retirement plan distribution? Do IRAs have the same spousal consent requirements? Do spousal consent requirements apply to plan participants joined in civil unions that aren’t defined as marriage?

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?

What to Know about the Summary Plan Description

What is a summary plan description? When must it be given and to whom? Can it be delivered electronically? What are the consequences of not providing one?

Recouping HSA Contributions

An employer generally cannot recoup contributions it made to an employee’s HSA. But there are certain circumstances in which the IRS does allow an employer to recoup, or recover, contributions.

HSA, expertAscensusApril 15, 2021Compliance & Operations, HSA, Contribution, Q&A

Using Safe Harbor Contributions to Pass ADP Testing

Making a retirement plan a safe harbor plan is another way for a plan to pass its ADP testing. What did the SECURE Act change to allow for this option? Are there requirements or restrictions to be aware of?

Employer Plan, expertAscensusApril 15, 2021Compliance & Operations, Retirement Plan, Contribution, Distribution, Q&A

Accepting and Reporting Coverdell ESA Contributions

Is your organization responsible for ensuring that family members do not contribute more than the annual contribution limit to a Coverdell ESA? Can you accept ESA contributions on the child’s 18th birthday? How are ESA contributions reported and what is the reporting deadline?

ESA, expertAscensusMarch 18, 2021Compliance & Operations, Coverdell ESA, Contribution, Reporting, Q&A

Qualified Plan Loan Offsets

What is a qualified plan loan offset? What is the qualified plan loan offset extended rollover period? How should we report a qualified plan loan offset?

Employer Plan, IRA, expertAscensusMarch 18, 2021Compliance & Operations, IRA, Retirement Plan, Loan, Reporting, Rollover

Not All Traditional IRA Contributions Are Deductible

How does your client determine whether Traditional IRA contributions are deductible? What options does your client have when Traditional IRA contributions are partially deductible? Are there special considerations for IRA owners age 70½ or older?

expert, IRAAscensusFebruary 18, 2021Compliance & Operations, IRA, Traditional IRA, Contribution, Deduction, Q&A