The Department of Labor published on January 14, 2022, several inflation-adjusted penalty amounts for certain failures associated with qualified retirement plans.
Read More
Financial organizations that administer IRAs, health savings accounts (HSAs), and Coverdell education savings accounts (ESA) have many reporting deadlines looming ahead in 2022. Here’s a rundown of the impending due dates in the first quarter.
Read More
The one-per-12-month IRA rollover rules were radically revised in 2014 as a result of a U.S. Tax Court decision, restricting rollovers to individuals rather than to IRAs. A real-life case study of a one-per-12-month rollover rule violation taken directly from our IRA consulting lines demonstrates how to protect your financial organization while helping your clients.
Read More
Parents and grandparents tend to open and to contribute to Coverdell education savings accounts (ESAs) around the holidays and the start of the new year. If you don’t work with ESAs on a regular basis, now is the perfect time to review how to establish an ESA.
Read More
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.
Read More
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.
Read More
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?
Read More
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.
The IRS released the 2022 IRA and retirement savings plan limitations in early November. Most limitations will increase for 2022.
Read More
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.
Read More
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?
Read More
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.
Read More
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.
Read More
The IRS recently issued two news releases announcing the postponement of certain tax-related deadlines for Connecticut and Mississippi victims of Hurricane Ida.
Read More
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?
Read More
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.
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.
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.
Read More