More retirement-related regulatory news for plan sponsors, including links to detailed information.
IRS issues announcement that penalty relief for small plans begins in June
The Internal Revenue Service (IRS) will begin a one-year pilot program in June to help small businesses with retirement plans that owe penalties for not filing reporting documents. By filing current and prior year forms during this pilot program, they can avoid penalties. The IRS is reaching out to certain small businesses that maintain retirement plans and may have been unaware that they had a filing requirement.
To read the entire IRS news release, click here.
IRS issues private letter ruling on church plan
The IRS has released Private Letter Ruling (PLP) 201420028 regarding the church plan status of a retirement plan of an affiliated religious organization not under direct control of an identifiable church.
To read the entire PLP, click here.
2010 IRPAC reports make recommendations on Form W-2, health valuation reporting, and more
The Information Reporting Program Advisory Committee (IRPAC) of the IRS has provided recommendations to assist the agency in developing resolutions to issues related to the new Form W-2, Wage and Tax Statement, in health valuation reporting, and in communicating information to taxpayers.
To learn more about IRPAC’s recommendations, click here.
IRPAC also released a report titled “2010 IRPAC report: Ad hoc subgroup.” Recommendations by a subgroup of the IRPAC include:
• Electronic furnishing of Forms 1098, 1099, 5498, and W-2
• Form 5498 and fair market value reporting for deceased beneficiaries and successor beneficiaries
• Information regarding nonresident alien taxation and tax reporting
• Reporting guidelines for the return of mistaken health savings account (HSA) contributions to an employer
• Form 1099-R reporting under Employee Plans Compliance Resolution System (EPCRS) guidelines for simplified employee pension (SEP), salary reduction SEP (SARSEP), and Savings Incentive Match Plans for Employees (SIMPLE) excesses returned to employers
• Form 5498-SA, HSA, Archer medical savings account (MSA), or Medicare Advantage MSA information due date change
To read the entire IRPAC report, click here.
IRS updates posting regarding recent developments of governmental plans under Section 401(a)
The IRS has posted recent developments regarding governmental plans under Internal Revenue Code Section 401(a). The posting provides information under the following topics:
• Determination letters
• Group trusts
• Normal retirement age
• Possible approaches to governmental plan guidance
• Governmental plans updates
To read the updated webpage, click here.
IRS posts retirement plans FAQs regarding USERRA and SSCRA
The spring 2003 edition of Employee Plans News presented an article describing the Uniformed Services and Reemployment Rights Act (USERRA) and the Veterans and Sailors Civil Relief Act of 1940 (SSCRA). The article included several frequently asked questions concerning the reemployment of veterans and the restoration of retirement plan benefits. Because of the interest generated by the article, supplemental FAQs on this topic have been addressed by the IRS.
To read the entire list of FAQs, click here.