More retirement-related regulatory news for plan sponsors, including links to detailed information.
IRS releases guidance on safe harbor correction methods
The IRS has issued Revenue Procedure 2015-28, which contains modifications to Revenue Procedure 2013-12, 2013-4 I.R.B. 313. The modifications reflected in this revenue procedure include new safe harbor EPCRS correction methods relating to automatic contribution features, including automatic enrollment and automatic escalation of elective deferrals, in plans described in § 401(k) and § 403(b). The special safe harbor correction methods established for plan including those with automatic contribution features that have failures that are of limited duration involving elective deferrals.
To read the entire guidance, click here.
PBGC issues proposed rule on electronic filing of multiemployer plans
The Pension Benefit Guaranty Corporation (PBGC) is proposing to amend its regulations to require electronic filing of certain multiemployer notices. These changes would make the provision of information to the PBGC more efficient and effective. The proposed rule would require the following notices to be filed electronically with PBGC:
• Notices of termination under part 4041A
• Notices of insolvency and of insolvency benefit level under parts 4245
• Notices of insolvency and of insolvency benefit level under part 4281 (following mass withdrawal)
• Applications for financial assistance under part 4281 (following mass withdrawal).
To read the entire proposed rule, click here.
IRS reminds plan sponsors to keep track of loans and hardship distributions
Even if a plan sponsor uses a third party administrator (TPA) to handle participant transactions, they are ultimately responsible for the proper administration of their retirement plan. The IRS has published recordkeeping requirements regarding loans and hardship distributions.
For more information, click here.
IRS issues guidance on plan distributions to foreign persons
The IRS has published information for plan sponsors making distributions to foreign individuals. To read the entire guidance, click here.