Can plan-related fees and expenses be paid out of a qualified retirement plan? Which plan account balances may be used to pay plan-related fees? Can a mandatory amendment or restatement fee be paid out of plan assets?
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Long-awaited guidance from the IRS grants relief for those who took distributions that were intended to be 2020 RMDs—before the 2020 RMD waiver was granted—and requires IRA trustees and custodians to notify IRA owners that no RMD is due for 2020.
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As a new school year begins, your organization may notice an uptick in questions from clients about distributions from Coverdell education savings accounts. Here are the answers to five of the more common questions you may hear.
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Qualified retirement plans—including profit sharing, money purchase, and 401(k) plans—receive special tax benefits by meeting the requirements set forth by the IRS. Employers or plan sponsors are responsible for restating their plan documents to avoid a plan qualification failure.
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When an HSA owner turns 65, must the entire HSA be distributed? Can an HSA owner who is 65 or older use HSA assets to pay Medicare premiums? What happens if an HSA owner age 65 or older uses HSA assets for nonqualified expenses?
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The Congressional Research Service recently updated a previous report that it published on the solvency of the Social Security system. This data provides food for thought and takes the discussion out of the realm of speculation and hearsay.
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The IRS has released a notice of proposed rulemaking that pertains to rollover rules for qualified plan loan offset amounts. There will be a 45-day comment period after publication in the Federal Register.
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The IRS announced an extension of time to complete certain time-sensitive, tax-related acts for victims of severe storms in Michigan and an earthquake in Utah.
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IRS Notice 2020-51 provides much-needed additional guidance—and some welcome relief—pertaining to the 2020 RMD waiver. It seems to answer some of the outstanding questions about the waiver that the CARES Act did not.
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The DOL recently issued investment advice guidance to replace the guidance struck down in 2018 by the United States Court of Appeals for the Fifth Circuit. This latest guidance package includes a proposed prohibited transaction class exemption and a technical amendment to DOL Regulations 2509 and 2510.
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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.
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IRS Notice 2020-50 provides greater clarity of the CARES Act provisions pertaining to coronavirus-related distributions and plan loan relief.
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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.
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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?
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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.
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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.
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The CARES Act grants tax-favored access to savings and provides a pathway to replenishing them later with coronavirus-related distributions.
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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?
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