Articles — Ascensus

House Passes Third Bill in Tax Reform 2.0 Package

The House of Representatives has passed the Protecting Family and Small Business Tax Cuts Act of 2018. This is the third and final bill in the Tax Reform 2.0 package considered in the House.

IRA, Employer PlanAscensusOctober 18, 2018IRA, Retirement Plan, Congress, Guidance & Legislation, Tax

House Acts on Saving Enhancements; Ball Now in Senate’s Court

On September 27, 2018, the House of Representatives passed the Family Savings Act of 2018, legislation that would make many significant changes to retirement and other tax-favored savings arrangements. Passage by the Senate is uncertain.

Employer Plan, IRAAscensusOctober 18, 2018IRA, Retirement Plan, Guidance & Legislation, Washington Pulse, Congress

Key Considerations for Retirement Plan Design

As the end of another plan year approaches, it may be time for an employer to evaluate whether current plan provisions still fit the employer’s situation and objectives. After giving thoughtful consideration to several factors, the employer may want to amend for certain plan design changes.

How SEP, SIMPLE, and Owner-Only 401(k) Plans Stack Up

Most small business owners and self-employed individuals want an employer-sponsored retirement plan that’s affordable and easy to administer. Find out how SEP, SIMPLE IRA, and owner-only 401(k) plans stack up.

HSA vs. FSA: Diagnosing the Differences

HSAs and health FSAs are both used to save and pay for qualified medical expenses with the potential benefit of tax-free distributions. So how do they actually differ from each other?

HSAAscensusOctober 18, 2018Compliance & Operations, HSA, Contribution, Eligibility, Distribution

Moving Money to an HSA with a Qualified HSA Funding Distribution

What is a qualified HSA funding distribution and how much can be distributed? Can a qualified HSA funding distribution help satisfy an RMD? What is a testing period?

What Is the Top-Heavy Test and What Should Plans Do if Top Heavy?

What is the top heavy test and who is a key employee? What if a plan is deemed top-heavy? What are top-heavy minimum contributions?

Details of Tax Reform 2.0 Legislation Revealed

Tax Reform 2.0, if enacted by Congress, would make significant changes to tax-advantaged savings arrangements. The House may vote on this legislation by the end of September.

Trump Asks Agencies to Revise Retirement Plan Rules

President Trump issued an Executive Order directing the Secretaries of Labor and Treasury—and the agencies they lead—to review and consider ways to revise several important provisions pertaining to retirement savings plans.

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.

HSAs and Generation X: From Overlooked to Opportunity

When it comes to your HSA business, be careful not to overlook your generation X clients, as most own an HSA. Knowing their generational traits may be helpful in marketing to this particular group of consumers.

HSAAscensusSeptember 20, 2018HSA, Business Insights, Industry Trends & Statistics

What Does It Mean to Have a Nonqualified ESA Distribution?

What is the difference between a qualified and a nonqualified distribution from a Coverdell ESA? Does a penalty tax apply to a nonqualified distribution?

expert, ESAAscensusSeptember 20, 2018Compliance & Operations, Coverdell ESA, Distribution, Education, Q&A

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.

Don’t Chance It with IRA Beneficiary Designations

Getting IRA owners to designate a beneficiary can be challenging, but not doing so could lead to problems for the financial organization later, not to mention financial liability.

IRAAscensusAugust 16, 2018Traditional IRA, Roth IRA, Beneficiary, Plan Establishment