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?

IRA Investments—Are there restrictions?

We are considering offering additional investment opportunities. What are the limitations? Are life insurance and collectibles the only two investments prohibited in an IRA?

IRA, expertAscensusApril 19, 2018Compliance & Operations, Investment, Q&A

IRS Reduces HSA Family Contribution Limit for 2018

The IRS has lowered the health savings account (HSA) maximum contribution amount for family coverage for 2018—an adjustment resulting from the Tax Cuts and Jobs Act that changed the formula used to calculate inflation-adjusted contribution limits.

HSAAscensusMarch 15, 2018Contribution

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.

Coordination of HSA and Medicare Timeline Explained

Ascensus EVP Steve Christenson discusses HSA and Medicare timing considerations that financial organizations should discuss with their HSA clients who are nearing retirement.

HSAAscensusMarch 15, 2018HSA, Medicare, Eligibility, Contribution, Compliance & Operations, Business Insights

Coverdell ESA Pros and Cons

What are some benefits of an ESA compared to other types of accounts? What are some of the pitfalls? Can a customer open an IRA for his child to pay the child’s education expenses?

ESA, expertAscensusMarch 15, 2018Compliance & Operations, Coverdell ESA, Education, Distribution, Q&A

Be Ready to Answer These Thorny HSA Distribution Questions

HSA savings is on the rise, and customer questions will not slow down. Being able to answer to confusing HSA questions will set you apart as an HSA expert and a provider of good customer service.

HSAAscensusMarch 15, 2018Compliance & Operations, HSA, Distribution, Reporting

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

Tips to Help You Avoid IRA Compliance Blunders

IRA compliance is a big responsibility for financial organizations that administer IRAs, and mistakes do happen. Here are common errors that Ascensus® consultants have found during financial organization IRA compliance reviews.

IRAAscensusFebruary 15, 2018IRA, Compliance & Operations, Reporting, Documents & Amendments, Withholding, Beneficiary

HSAs: Prorating Contributions

How is an individual’s HSA contribution limit determined for the year he enrolls in Medicare? How much can an HSA owner contribute if he switches from self-only to family health insurance coverage mid-year?

expert, HSAAscensusFebruary 15, 2018HSA, Contribution, Q&A

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

Get Ready for 2018 Contributions, but Don’t Forget 2017 Prior-Year Contributions

Traffic at financial organizations picks up soon for IRA and health savings account (HSA) contributions. Individuals can start making 2018 contributions, but preparing their 2017 income tax returns often prompt them to make prior-year contributions.

IRA, HSAAscensusJanuary 18, 2018Traditional IRA, Roth IRA, HSA, Contribution, Eligibility, Deduction, Compliance & Operations

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.