Articles — Ascensus

House Version of “Build Back Better” Act Contains Retirement Plan and Benefits Provisions

Last month the U.S. House of Representatives passed H.R. 5376, the Build Back Better Act (“BBB Act” or “the Act”). Following quickly on the heels of the Infrastructure Investment and Jobs Act, the BBB Act contains several retirement and benefits provisions that may affect financial organizations, service providers, and consumers. This bill has gone through numerous revisions as it made its journey to the House floor for a vote. It will now go to the Senate, which will likely make further revisions.

SEP Plans Made Simple: Your Questions Answered

A simplified employee pension (SEP) plan offers many advantages not available with qualified retirement plans. Even though a SEP plan may be easier for an employer to maintain, questions from both employers and employees still arise.

expert, IRA, Employer PlanAscensusDecember 16, 2021Compliance & Operations, IRA, SEP Plan, SIMPLE IRA Plan

Understanding Ownership Attribution for Retirement Plans

When each spouse owns 100 percent of their own business, are their businesses considered separate employers or a single employer for qualified retirement plan purposes? What situations involving spouses could cause businesses to be treated as a single employer?

expert, Employer PlanAscensusDecember 16, 2021Compliance & Operations, Retirement Plan, IRS

IRS Form 1099-R: Which Distribution Code Goes In Box 7?

One of the most difficult aspects of reporting IRA and qualified retirement plan distributions is determining the proper distribution codes to enter in Box 7 on IRS Form 1099-R. Consider some common distribution scenarios to learn which code applies and why.

2022 Retirement Savings Limitations Released

The IRS released the 2022 IRA and retirement savings plan limitations in early November. Most limitations will increase for 2022.

IRS Postpones Until 2023 Required Use of Updated Forms W-4P, W-4R

The IRS recently released a new draft of Form W-4R and of Form W-4P, in which the IRS indicates that it will not require use of the redesigned Form W-4P and the new Form W-4R to meet federal withholding requirements until January 1, 2023.

Separate Accounting and Its Effect on Beneficiary Options

What is separate accounting? How are IRA assets moved to separate accounts? Is there a deadline to establish separate accounts? Who is a designated beneficiary and why is knowing that important?

IRA, expertAscensusNovember 18, 2021Compliance & Operations, IRA, Beneficiary, Distribution, Q&A

Know the Risks and Responsibilities Before Offering Hard-to-Value Investments

Offering alternative investment options may be one way to attract and retain IRA clients with large balances. If your organization does offer alternative investments, either directly or through an outplacement relationship, it may face challenges in accommodating your clients’ hard-to-value assets.

IRAAscensusNovember 18, 2021Compliance & Operations, Business Insights, IRA, Fair Market Value, Form 5498

DOL Announces New Temporary Enforcement Policy for PTE 2020-02

The Department of Labor recently released guidance extending the transitional relief and non-enforcement guidance related to investment advice fiduciaries who work diligently and in good faith to comply with Impartial Conduct Standards.

Employer Plan, IRAAscensusNovember 18, 2021Compliance & Operations, IRA, Retirement Plan, DOL, Fiduciary

Deadline Relief Issued for Hurricane Ida Victims in Connecticut and Mississippi

The IRS recently issued two news releases announcing the postponement of certain tax-related deadlines for Connecticut and Mississippi victims of Hurricane Ida.

ERISA vs Non-ERISA 403(b) Plans

What is the difference between ERISA and non-ERISA 403(b) plans? Does ERISA apply to the 403(b) plans established by religious organizations? What are the implications of being subject to Title I of ERISA?

Employer Plan, expertAscensusNovember 17, 2021Compliance & Operations, 403(b) Plan, Q&A

Successor Beneficiary Options Post-SECURE Act

The SECURE Act changed many aspects that IRA and qualified retirement plan beneficiaries need to consider, making the administration of beneficiary distributions more complex. One aspect that is straightforward, however, is the distribution options for a successor beneficiary.

Year-of-Death RMDs and Unresponsive Beneficiaries: A Case Study in Bad Options

When it comes to satisfying a year-of-death RMD, missing or unresponsive beneficiaries may complicate matters. Consider what to do when there are multiple beneficiaries and one is unresponsive—how should the RMD be handled? While there may be no satisfactory answer or clear guidance, it’s worth considering the options.

Know the Eligibility Rules When Setting Up HSAs

As benefits enrollment season fast approaches, you may see an increase in new clients looking to set up HSAs. Now may be a perfect time for you and your staff members to brush up on your HSA knowledge, especially when it comes to understanding HSA eligibility.

HSAAscensusOctober 21, 2021Compliance & Operations, HSA, Eligibility

How Federal Withholding Requirements Apply to IRA Distributions

Are IRA owners always allowed to waive federal withholding on IRA distributions? What are the withholding requirements for nonresident aliens? Do the withholding rules apply to Roth IRA distributions?

IRA, expertAscensusOctober 21, 2021Compliance & Operations, IRA, Traditional IRA, Roth IRA, Distribution, Withholding, Q&A

Retirement Plan Vesting and Vesting Schedules Explained

What is vesting as it relates to a defined contribution retirement plan? How is vesting applied in defined contribution retirement plans? What are the possible vesting schedules?

Employer Plan, expertAscensusOctober 21, 2021Compliance & Operations, Retirement Plan, Contribution, Distribution, Q&A

2022 Taxable Wage Base Announced

The Social Security Administration recently announced the 2022 cost-of-living adjustments for certain benefits. Included is the taxable wage base increase from 2021.

IRA, Employer PlanAscensusOctober 21, 2021Compliance & Operations, SEP Plan, Retirement Plan, Contribution

Be Sure Your Clients Understand HSA Distributions

If you have clients who own an HSA, they may have questions about using their HSA money to pay or reimburse themselves for medical expenses that they’ve incurred. Do they understand the tax advantages—and any tax consequences—of HSA distributions? Educating your clients about HSA distributions can help them get the most from their HSA savings.

HSAAscensusSeptember 16, 2021Compliance & Operations, HSA, Distribution, Eligibility