More retirement-related regulatory news for plan sponsors, including links to detailed information.
IRS releases specifications for electronic filing of Form 8955-SSA
The Internal Revenue Service (IRS) released Publication 4810, “Specifications for Electronic Filing of Form 8955-SSA, Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits.” The purpose of this publication is to provide the specifications for electronically filing Form 8955-SSA with the IRS. The publication must be used to prepare current and prior year Form 8955-SSAs.
To download the publication, click here.
403(b) preapproved plan program FAQs posted
The IRS has posted FAQs related to 403(b) preapproved plan programs on eligible adopting employers and reliance on letters. Questions include:
• Who can adopt a 403(b) prototype or volume submitter specimen plan?
• What is an IRS opinion or advisory letter for a 403(b) preapproved plan?
• To what extent can an adopting employer rely on a 403(b) prototype plan’s opinion letter?
• To what extent can an adopting employer rely on a 403(b) volume submitter plan’s advisory letter?
To access the FAQ, click here.
Two summary reports by Employee Plans Compliance Unit posted
The IRS posted two new reports from the Employee Plans Compliance Unit (EPCU): “Updating Frozen Defined Benefit Plans for Current Law and Other Compliance Issues” and “Nonqualified 401(k) Plans.”
During the Frozen Plan Amendments project, the EPCU looked at whether sponsors of frozen defined benefit plans had amended their plans for the Economic Growth and Tax Relief Reconciliation Act of 2001.
The EPCU Nonqualified 401(k) Plans project began in February 2013. The unit sent contact letters to a sample of plan sponsors that showed their 401(k) plans were nonqualified. The unit wanted to learn whether they made a mistake when selecting pension feature codes 2J and 3C on their Form 5500 series returns to describe their plan’s characteristics. Responses showed that 87% of plan sponsors in the sample made filing errors showing that their plans were not qualified 401(k) plans. A 401(k) plan must be a qualified plan.
IRS releases notice delaying the overhaul of the Form W-4 until 2020
The IRS published Notice 2018-92. This notice provides interim guidance for the 2019 calendar year on income tax withholding from wages and from retirement and annuity distributions. This notice provides that certain withholding rules in Notice 2018-14, 2018-7 I.R.B. 353, that applied for 2018 will remain in effect for the 2019 calendar year or, in the case of one such rule, until April 30, 2019. Also, the IRS and the Department of the Treasury intend to develop regulations under sections 3401 and 3402 of the Internal Revenue Code, as amended by section 11041 of the Tax Cuts and Jobs Act.
To read the entire notice, click here.