Tag Archives: IRS

2020 key administrative dates and deadlines for calendar-year single-employer defined benefit retirement plans

Milliman’s 2020 key administrative dates and deadlines for calendar-year single-employer defined benefit retirement plans is now available. The calendar lists relevant 2020 administrative dates encountered by most single-employer defined benefit plans, including deadlines for quarterly contributions, determination letter applications, and funding notices. The calendar also provides a short description of the actions required to meet each deadline.

To download the calendar, click here.

COLAs for retirement, Social Security, and health benefits for 2020

The Internal Revenue Service (IRS) has announced the cost-of-living adjustment (COLA) figures for retirement plan benefits for 2020. The Social Security Administration announced its 2020 changes in October based on the Consumer Price Index for the quarter ended September 2019 from the U.S. Bureau of Labor Statistics. The 2020 adjusted figures for high-deductible health plans (HDHPs) and health savings accounts (HSAs) included in this Client Action Bulletin were released by the IRS earlier this year and are provided here for convenience.

2020 key administrative dates and deadlines for calendar-year multiemployer defined benefit plans

Milliman’s 2020 multiemployer defined benefit calendar with key administrative dates and deadlines is now available on our website. The calendar lists relevant 2020 administrative dates encountered by most multiemployer defined benefit plans, including deadlines for governmental filings and participant disclosures. The calendar also provides short descriptions of the actions required to meet each deadline.

To download the calendar, click here.

Regulatory roundup

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

PBGC requests modified collection of information on payment of premiums regulation
The Pension Benefit Guaranty Corporation (PBGC) is requesting that the Office of Management and Budget (OMB) approve a modified collection of information under its regulation on payment of premiums. This notice informs the public of PBGC’s request and solicits public comment on the collection.

To learn more, click here.

2020 Draft W-2 Form issued
The Internal Revenue Service (IRS) has released a draft copy of the 2020 W-2 Form. The 2020 Form W-2 is due by February 1, 2021. Copy A of Form W-2 must be mailed or electronically filed with the Social Security Administration by February 1, 2021.

To download the draft copy, clock here.

Regulatory roundup

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

Social Security announces 1.6% COLA increase for 2020

The Social Security Administration announced a 1.6% cost-of-living adjustment (COLA) for benefits payable starting in 2020. For 2020, the Social Security taxable wage base will increase to $137,700, up from $132,900 in 2019. The Social Security Old-Age, Survivors, and Disability Insurance (OASDI) tax rate will remain at 6.2% on wages up to the $137,700 wage base.

For more information, click here.

PBGC releases 2018 Actuarial Report

The Pension Benefit Guaranty Corporation (PBGC) published the 2018 Actuarial Report containing a summary of the results of the September 30, 2018, actuarial valuation. The agency calculated and validated the present value of future benefits for both the single-employer and multiemployer programs and of non-recoverable future financial assistance under the multiemployer program.

To read the entire report, click here.

PBGC announces the 2020 premium rates

The PBGC has determined the premium rates for single-employer and multiemployer plans applicable for 2020 plan years in accordance with the indexing rules provided in section 4006 of ERISA.

To see the updated premium rates, click here.

PBGC posts 2017 pension insurance data tables

The PBGC published the first installment of the 2017 data tables, which include statistics for PBGC’s single-employer and multiemployer programs and for the private defined benefit pension system. This installment provides detailed information about PBGC’s single-employer program, including claims activity, financial position, premium revenue, benefit payments, and administrative expenses.

To see the pension insurance data, click here.

Proposed rule on contribution limits applicable to ABLE accounts issued

The Internal Revenue Service (IRS) issued a proposed rule related to section 529A of the Internal Revenue Code, which allows a state (or its agency or instrumentality) to establish and maintain a tax-advantaged savings program under which contributions may be made to an ABLE account for the purpose of paying for the qualified disability expenses of the designated beneficiary of the account.

Section 529A was amended by the Tax Cuts and Jobs Act, signed into law on December 22, 2017. The 2017 Act allows certain designated beneficiaries to contribute a limited amount of compensation income to their own ABLE accounts.

To read the entire proposed rule, click here.

Regulatory roundup

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

Revenue Procedure providing remedial amendment periods for correcting form defects in 403(b) plans released

The Internal Revenue Service (IRS) released Revenue Procedure 2019-39, which sets forth a system of recurring remedial amendment periods for correcting form defects in a § 403(b) plan first occurring after March 31, 2020—the ending date for the initial remedial amendment period under Rev. Proc. 2013-22, 2013-18 I.R.B. 985.

To learn more, click here.

PBGC issues proposed rule on administrative review of decisions

The Pension Benefit Guaranty Corporation (PBGC) is amending its regulation on rules for administrative review of agency decisions. The PBGC’s proposed rule would clarify and make changes to the review process for certain agency determinations and the procedures for requesting administrative review.

To learn more, click here.