Articles — Ascensus

What to Know About ESA Transfers and Rollovers

How can Coverdell ESA assets be moved? Can ESA assets be moved after the child turns age 18? Who is a qualified family member for ESA purposes?

expert, ESAAscensusDecember 20, 2018Compliance & Operations, Coverdell ESA, Q&A, Rollover, Transfer

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

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official—the 2016 Department of Labor (DOL) fiduciary investment advice final regulations and accompanying guidance are repealed.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

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

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

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.

Key Coverdell ESA Contribution Questions Administrators Face

Coverdell education savings accounts (ESAs) provide a unique savings vehicle with the potential to have tax-free income to cover the costs for education. Questions about ESAs surface when family members, or others, come into their financial organization to make contributions for their loved one. Here are a few common questions financial organization may encounter about ESA contributions.

ESAAscensusJanuary 18, 2018Coverdell ESA, Contribution, Tax, Compliance & Operations

Tax Reform Law Affects IRAs, Retirement Plans, and Other Savings Arrangements

Late in December 2017, President Trump signed tax reform legislation into law (Public Law No. 115-97) resulting in fulfillment of one of the GOP’s major 2016 campaign promises. The legislation affects employer-sponsored retirement plans and IRAs, and in some cases, other tax-advantaged savings arrangements.

Employer Plan, IRA, ESAAscensusJanuary 18, 2018News, Compliance & Operations, Congress, Tax, Retirement Plan, IRA, Guidance & Legislation

PBGC’s Modified Missing Participant Regulations Now Apply to DC Retirement Plans

The Pension Benefit Guaranty Corporation (PBGC) issued final regulations that modify existing guidance on missing participants and beneficiaries in terminating qualified retirement plans. The revised regulations broaden guidance to now apply to defined contribution (DC) plans, to multiemployer (union) plans covered under PBGC’s pension insurance program, and to certain other DB plans not previously covered.

Employer Plan, IRA, ESAAscensus -January 18, 2018News, Compliance & Operations, Congress, DOL, Tax, Retirement Plan, IRA, Guidance & Legislation

DOL Extends Transition Period for Key Fiduciary Rule Requirements to Mid-2019

The applicability date of several key elements of the Department of Labor (DOL) investment fiduciary guidance has been extended from January 1, 2018, to July 1, 2019. The additional 18-month transition period specifically applies to the controversial Best Interest Contract (BIC) exemption, to the “principal transactions” exemption for asset transactions between investment fiduciaries and employee benefit plans (including IRAs), and to certain proposed restrictions on annuities offered as retirement investments.

Employer Plan, IRA, ESAAscensusJanuary 9, 2018News, Compliance & Operations, DOL, IRS, Tax, Retirement Plan, IRA, Fiduciary, Guidance & Legislation

Start Off Right When Opening Coverdell ESAs

Coverdell education savings account (ESA) contributions tend to pick up when the holidays approach.

ESAAscensus -October 2, 2017Compliance & Operations, Coverdell ESA