Articles — Ascensus

It’s Time to Remind Clients Why They Should Have an HSA

HSAs are IRA-like accounts that are tax-favored and designed to cover medical expenses incurred by the HSA owner, the HSA owner’s spouse, and his dependents. So—how can HSAs help your clients?

HSAAscensusMarch 17, 2022Compliance & Operations, HSA

Answering Your Clients’ Tricky Tax Reporting Questions

As your clients prepare their tax returns, you may find yourself receiving a barrage of tax reporting questions. Hopefully, here are the answers to some of your challenging questions during tax season.

Qualified Retirement Plans: What is a Protected Benefit?

Plan sponsors should evaluate their plans for protected benefits when they make a discretionary amendment or when there is an acquisition or merger of plans.

DOL Final Rule on SECURE Act Group of Plan Reporting at OMB

Final regulations entitled, Implement SECURE Act and Related Revisions to Employee Benefit Plan Annual Reporting on the Form 5500, issued by the Department of Labor’s Employee Benefits Security Administration (EBSA), have been received by the federal Office of Management and Budget (OMB).

IRS Issues Temporary Suspension of Prototype IRA Opinion Letter Program

The Internal Revenue Service (IRS) has issued Announcement 2022-6, providing that effective March 14, 2022, and until further notice, the IRS will not accept applications for opinion letters on prototype IRAs (Traditional, Roth, and SIMPLE IRAs), SEP plans (including salary reduction SEPs (SAR-SEPs)), and SIMPLE IRA plans.

IRAAscensusMarch 17, 2022Compliance & Operations, Traditional IRA, Roth IRA, SEP Plan, SIMPLE IRA Plan, IRS

Top Trending IRA Questions (and Answers) from ERISA Consultants

In 2021, Ascensus’ ERISA consultants fielded approximately 40,000 calls from our clients who subscribe to our 800 Consulting Lines. We asked our experienced IRA consultants what their trending IRA questions were last year and we compiled a list, along with their responses.

Avoid These Common IRA Compliance Mistakes

Ascensus consultants conduct compliance reviews throughout the country in order to help financial organizations recognize errors and identify ways to mitigate their risks. Here are some of the more common compliance mistakes that Ascensus consultants have discovered.

IRAAscensusFebruary 17, 2022Compliance & Operations, IRA, Reporting, Distribution, Beneficiary, Withholding

Brace Yourself for 2022 Contributions (And Watch for Those Last-Minute Prior-Year Contributions)

The first few months of each year usually bring an increased number of contributions for individual retirement arrangements (IRAs) and health savings accounts (HSAs). During this flurry of contribution activity, it’s important to make sure that your clients clearly designate the year that a contribution is for.

HSA, IRAAscensusFebruary 17, 2022Compliance & Operations, IRA, Traditional IRA, Roth IRA, HSA, Contribution, Reporting

Understanding Nondeductible Contributions to Qualified Retirement Plans

Nondeductible employee contributions, otherwise known as after-tax contributions, are available in qualified plans like 401(k), 403(b), or money purchase pension plans. Depending on the plan design, individuals can increase their qualified plan Roth assets by making nondeductible contributions and then rolling over (i.e., converting) the assets to a designated Roth account within the plan.

expert, Employer PlanAscensusFebruary 17, 2022Compliance & Operations, Qualified Retirement Plan, Q&A

How Insurance Coverage May Affect HSA Eligibility

To make HSA contributions, an individual must be covered by a qualifying high deductible health plan (HDHP), and not be covered by a plan that is not an HDHP. However, when it comes to HSA eligibility, not all HDHPs are created equal.

HSAAscensusFebruary 17, 2022Compliance & Operations, HSA, Contribution, Distribution, Eligibility, Q&A

Retirement Enhancements Expected in 2022 Legislative Proposals

Several bills with provisions that would alter tax-advantaged savings arrangements have been introduced. If these provisions are approved, they represent important priorities for the House and Senate lawmakers responsible for their drafting and introduction.

Your Search for the New Life Expectancy Tables is Over

If you’ve had difficulty locating the new life expectancy tables, you’re not alone. It’s recently become a common question fielded by ERISA consultants on Ascensus’ 800 Consulting service. You can find them all right here.

SEP, SIMPLE, and Individual(k) Plans: Navigating the Retirement Plan Options for Small- to Mid-sized Businesses

Most small- to mid-sized business owners and self-employed individuals want an employer-sponsored retirement plan that’s affordable and easy to administer. Find out how SEP, SIMPLE IRA, and Individual(k) plans stack up.

New Retirement Payment Withholding Procedure is (Finally) Final

A new IRS withholding form released in 2022 means that payers and individuals will have a new process for calculating and electing federal income tax withholding on retirement distributions. Although the IRS will not require payers to use the new and revised forms until January 1, 2023, payers may start using them in 2022.

IRAAscensusJanuary 20, 2022Compliance & Operations, IRA, Traditional IRA, Washington Pulse, Withholding

Contributing to an HSA With a Qualified HSA Funding Distribution From an IRA

A qualified HSA funding distribution allows HSA owners to directly move their Traditional or Roth IRA assets to their HSA as a regular contribution. Qualified HSA funding distributions are not deductible, however, and cannot be treated as a prior-year contribution.

expert, HSAAscensusJanuary 20, 2022Compliance & Operations, HSA, IRA, Contribution, Q&A

Understanding Qualified Domestic Relation Orders (QDROs)

A qualified domestic relation order, or QDRO, is generally issued in connection with the payment of child support, alimony, or the division of marital property from a qualified retirement plan, 403(b) plan, or governmental 457(b) plan assets.

April 18 is IRS Tax Filing Deadline for Most Filers

The IRS announced that the filing deadline for 2021 tax returns or requests for extension is April 18, 2022, for most taxpayers.

IRA, HSA, News Brief, Employer PlanAscensusJanuary 20, 2022HSA, IRA, Compliance & Operations, Regulations, IRS, Traditional IRA, Roth IRA, Tax, Reporting

IRS Issues Deadline Relief for Colorado Wildfire Victims, Washington Flooding and Mudslide Victims

In early January, the IRS issued a news release announcing the postponement of certain tax-related deadlines for victims of wildfires and straight-line winds in Colorado. The IRS also issued a news release in mid-January announcing the postponement of certain tax-related deadlines for victims of flooding and mudslides in Washington.