Regulatory roundup

More retirement-related regulatory news for plan sponsors, including links to detailed information.

401(k) contribution limit increases to $19,000 for 2019
The Internal Revenue Service (IRS) announced cost-of-living adjustments (COLAs) affecting dollar limitations for pension plans and other retirement-related items for tax year 2019. The IRS issued technical guidance detailing these items in Notice 2018-83.

To learn more, click here.

New report on taxpayers and 401(k) compliance published
The Treasury Inspector General for Tax Administration (TIGTA) released the report “Taxpayers Generally Comply With Annual Contribution Limits for 401(k) Plans; However, Additional Efforts Could Further Improve Compliance.” The overall objective of the audit was to determine whether IRS processes sufficiently identify and address excess contributions to 401(k) plans.

TIGTA analysis of IRS records showed that the vast majority of taxpayers are complying with tax laws designed to limit the annual amount of compensation that can be contributed to 401(k) retirement plans. Nonetheless, TIGTA identified two areas in which compliance could be improved: 1) some 401(k) plans did not prevent taxpayers from exceeding the annual limit, and 2) some taxpayers exceed annual limits when contributing to multiple 401(k) plans.

To read the entire audit, click here.

Applicable present values for 2019 pension plan years
The Pension Benefit Guaranty Corporation (PBGC) posted a table showing the applicable present values for 2019 plan years. The values apply to benefits with annuity starting dates in 2019. The 2019 table was developed using the 417(e) segment rates for August 2018 (3.10%, 4.15%, and 4.46%) for plan years beginning in 2019 and the 417(e) applicable mortality table for 2019.

To view the table, click here.

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