Articles — Ascensus

Drop in IRA Balances May Mean Rise in Roth IRA Conversions

These days, IRA owners may be noticing a drop in their IRA balances. While discouraging, it might be an opportunity to convert to a Roth IRA. Be sure that you—and your clients—understand how a conversion works.

IRS Provides More Details on CRD Eligibility and Plan Loan Relief

IRS Notice 2020-50 provides greater clarity of the CARES Act provisions pertaining to coronavirus-related distributions and plan loan relief.

Correcting Your HSA Reporting: Two Steps, Two Forms

The 2019 tax season is finally over. Then you find out that an HSA client received an incorrect IRS Form 1099-SA. How do you correct IRS forms for HSAs? No need to worry. The process is fairly straightforward.

HSAAscensusJuly 16, 2020Compliance & Operations, Retirement Plan, HSA, IRS, Reporting

Know the Rules If Changing a Safe Harbor Plan Mid-Year

Is it possible to reduce or suspend 401(k) or 403(b) safe harbor contributions mid-year? Can a safe harbor 401(k) plan be amended for other plan provisions mid-year? Is it possible to add safe harbor provisions mid-year?

There’s Still Time to Make Retirement Savings Plan Contributions for 2019

Your organization is likely still receiving 2019 IRA or retirement plan contributions. Maybe you are even fielding questions about the deadline. Be sure that your clients are aware of the deadline extension—that they still have time to make contributions.

IRS Provides Welcome Deadline Relief for Savings Arrangement Reporting

IRS Notice 2020-35 provides more deadline relief in response to the COVID-19 pandemic. Most awaited was an extension for providing the Form 5498-series information returns for IRAs, HSAs, MSAs, and Coverdell ESAs.

ESA, HSA, IRAAscensusJune 18, 2020Compliance & Operations, IRA, Coverdell ESA, HSA, IRS, Contribution, Reporting

CARES Act Aids Pandemic Recovery through Coronavirus-Related Distributions

The CARES Act grants tax-favored access to savings and provides a pathway to replenishing them later with coronavirus-related distributions.

Look Out for These Potential Beneficiary Blunders

Are there any drawbacks to a spouse beneficiary under age 59½ treating an inherited IRA as her own? Can an IRA beneficiary with an IRA distribution check payable to him establish an inherited IRA? What do we do after mistakenly rolling over inherited 401(k) assets to a nonspouse beneficiary’s IRA?

expert, IRAAscensusJune 18, 2020Compliance & Operations, IRA, Traditional IRA, Beneficiary, Distribution, Reporting, Q&A

CARES Act Provides Qualified Retirement Plan Loan Relief

The CARES Act, along with DOL loan relief guidance, briefly relaxes the qualified retirement plan loan regulations related to maximum loan amount, repayment, and rollover deadlines.

Recent Disaster Relief Changes with Retirement Plans

How does the recently added safe harbor hardship distribution reason apply for an individual who has been affected by a federally declared disaster? What tax relief is available for retirement plan disaster distributions?

More Options for Delivering Retirement Plan Disclosures

The DOL’s final regulations on default electronic delivery of retirement plan disclosures may make it easier for plan administrators to electronically deliver certain required disclosures to participants and beneficiaries in ERISA-covered plans.

Employer PlanAscensusJune 18, 2020Compliance & Operations, Retirement Plan, DOL, Notices, Washington Pulse

2021 HSA Limits Released

The IRS just released the 2021 HSA inflation-adjusted amounts for HSAs. While the contribution and out-of-pocket limits increased, minimum deductible amounts remain the same.

HSAAscensusMay 21, 2020Compliance & Operations, HSA, IRS, Contribution

IRS Q&As Provide More Information on CARES Act Provisions

Earlier this month, the IRS issued guidance in question-and-answer format on the special IRA and retirement plan relief granted in the CARES Act. The guidance summarizes the special relief to IRA owners and retirement plan participants and, in some cases, provides new and clarifying information.

HSA Qualified Medical Expenses Change Gives Savers More Reason to Use HSAs

Thanks to the CARES Act, savers can use their HSAs to purchase over-the-counter drugs and medications without a prescription—a welcome change for many of your HSA clients.

HSAAscensusMay 21, 2020Compliance & Operations, HSA, Guidance & Legislation, Distribution

How the 2020 RMD Waiver Applies; Rollover Guidance Still Needed

Find out how the 2020 RMD waiver applies to IRAs and defined contribution plans, pertaining to both account owners and beneficiaries—and how the rollover rules may be affected.

IRS Form 5498 Box-by-Box

The end of May is normally when the previous year’s IRS Form 5498 is due. But for 2019, the deadline has been moved to July 15. Here’s a run-down of what exactly needs to be entered in each box.

New 10-Year Rule for Beneficiaries Comes with New Considerations

Do all nonspouse beneficiaries have to use the 10-year rule? Are there benefits to the 10-year rule? Are there any special distinctions about the 10-year rule to be aware of?

IRA, expertAscensusMay 21, 2020Compliance & Operations, IRA, Beneficiary, Distribution, Q&A

403(b) Plan Restatement Is Extended Because of Pandemic

What is the 403(b) plan restatement? What is the deadline for restating 403(b) plan documents? What if an employer is unable to restate its 403(b) document timely?