Tag Archives: Regs and guidance

Regulatory roundup

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

Pension plan limitations not affected Tax Cut and Jobs Act
The IRS has announced that the Tax Cut and Jobs Act of 2017 does not affect the tax year 2018 dollar limitations for retirement plans detailed in Notice 2017-64. The tax law provides dollar limitations on benefits and contributions under qualified retirement plans, and it requires the Treasury Department to annually adjust these limits for cost of living increases. Those adjustments are to be made using procedures that are similar to those used to adjust benefit amounts under the Social Security Act.

For more information, click here.

Approval with modifications on termination of single-employer plans and missing participants requested
The Pension Benefit Guaranty Corporation (PBGC) has issued a notice requesting that the Office of Management and Budget (OMB) approve, with modifications, under the Paperwork Reduction Act a collection of information in PBGC’s regulations on Termination of Single Employer Plans and Missing Participants and implementing forms and instructions.

For more information, click here.

PBGC’s missing participants program now covers defined contribution plans

The Pension Benefit Guaranty Corporation’s (PBGC) recently released final rule updating the agency’s regulations on missing participants in terminated single-employer defined benefit (DB) plans newly extends the program to retirement plans not previously covered. These include most defined contribution (DC) retirement plans (e.g., 401(k) and profit-sharing plans), PBGC-covered multiemployer pension plans (MEPPs), and small (25 or fewer participants) professional service organizations’ defined benefit plans.

The final rule, which will include a “unified unclaimed pension database,” applies to plans – other than MEPPs – that terminate on or after Jan. 1, 2018, and gives DC plan sponsors the option to transfer the assets to the PBGC, rather than to establish individual retirement accounts at a financial institution for the missing participants. For terminating MEPPs, the rule applies to plans where the actual date of payment (i.e., plan close-out) is on or after Jan. 1, 2018. This Client Action Bulletin provides some more perspective.

Regulatory roundup

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

IRS releases guidance on withholding rules for 2018
The Internal Revenue Service has published Notice 2018-14 providing guidance on withholding rules. This notice extends the effective period of Forms W-4, Employee’s Withholding Allowance Certificate, furnished to claim exemption from income tax withholding under section 3402(n) of the Internal Revenue Code (Code) for 2017 until February 28, 2018.

For more information, click here.

Nearly one in five workers had access to financial planning benefits
According to the Bureau of Labor Statistics, about one-fifth of private industry workers were offered free or subsidized financial planning services from their employers in 2017. These services help employees make decisions about savings, borrowing, investing, home buying, education expenses, or retirement. While union and nonunion workers had similar rates of access to financial planning services, access varied based on size of establishment, wage level, and industry.

For more information, click here.

Regulatory roundup

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

Amendment for cash balance plan’s pre-conversion benefit granted
The Internal Revenue Service (IRS) has released a ruling, Private Letter Ruling 201803006, which states that the interest rate look-back month for a cash balance plan’s pre-conversion benefit can be amended.

For more information, click here.

Form 5500-EZ released
The IRS has released 2017 Form 5500-EZ, Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan and its instructions.

Form 5500-EZ is available here. The form’s instructions are available here.