Retirement Updates
2017 Archive

December 12, 2017

IRS Releases 2017 Required Amendments List for Qualified Retirement Plans

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On Dec. 5, 2017, the IRS issued Notice 2017-72, which is the 2017 Required Amendments List (RA List) for qualified retirement plans. The yearly RA Lists provide changes in the qualification requirements that could result in disqualifying provisions and require a remedial amendment. A disqualifying provision is a required provision that isn’t listed in the plan document, a provision in the document that doesn’t comply with the qualification requirements or a provision that the IRS defines as such.

The RA List is divided into two parts: Part A and Part B. Part A gives changes in qualification requirements that generally will require affected plans to be amended. Part B gives changes that would likely not require amendments to most plans, but might require an amendment because of an unusual plan provision in a particular plan.

The remedial amendment deadline for disqualifying provisions resulting from items on the 2017 RA List is Dec. 31, 2019 (or later, for certain governmental plans). Therefore, plan sponsors should determine whether amendments are necessary for their particular retirement plans.

IRS Notice 2017-72 »

IRS Updates Form 8950, Application for VCP Submissions

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On Nov. 29, 2017, the IRS released a revised Form 8950, which facilitates filings under the Voluntary Correction Program (VCP). As background, employers are able to use the Employee Plans Compliance Resolution System (EPCRS) to fix certain plan failures by filing a VCP application. Form 8950 has been updated to recognize the changes made to the EPCRS in Revenue Procedure 2016-51.

More specifically, the updated form reflects changes in the questions and information on the determination letter applications and cycles, the Audit CAP program and VCP compliance fees.

Any employers seeking to make VCP submissions to the IRS should use the updated Form 8950.

Form 8950 »
Form 8950 Instructions »

IRS Revises Form 5300

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On Nov. 29, 2017, the IRS released a revised Form 5300, which employers use to apply for a determination letter for qualified plans. The updated Form has been reduced by seven pages and reflects the changes imposed by Rev. Proc. 2016-37. Specifically, the updated Form includes revisions generally limiting determination letter requests to initial and terminating plan qualifications and eliminating the five-year remedial amendment cycles.

Employers who are seeking a determination letter for their plan should use the updated Form 5300.

Form 5300 »


November 29, 2017

DOL Finalizes Extension of Fiduciary Rule Transition Period

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On Nov. 29, 2017, the DOL finalized an extension of the Fiduciary Rule’s (the Rule) transition period. As background, the Rule became effective on June 9, 2017. However, the best interest contract (BIC) exemption and other related prohibited transaction exemptions (PTEs) weren’t going to become effective until Jan. 1, 2018. The DOL has now finalized a rule that extends that transition period from Jan. 1, 2018, to July 1, 2019.

As we reported in the Sep. 6, 2017, edition of Compliance Corner, President Trump requested (in a Feb. 3, 2017, memorandum) that the DOL reexamine the Rule to determine if it’s harmful to American investors. Although the DOL was unable to further delay the effective date of the Rule (past June 9, 2017), they did request comments from the public on the Rule and on its review. Some of those comments expressed the fact that there wasn’t enough time between the applicability date of the Rule and the Jan. 1, 2018, applicability of the BIC and other related exemptions for the DOL to review the Rule. The DOL agreed and expressed a concern that without a delay in the applicability date, parties could incur undue expenses in seeking to comply with a law that could eventually change.

In addition to delaying the applicability of the BIC and other related PTEs, the DOL’s final rule also expressly delays the applicability of certain amendments to PTE 84-24, which allows an exemption for commissions paid to insurance brokers in connection with a plan’s purchase of insurance or annuity contracts.

Although enforcement of the BIC and other PTEs will be delayed, the DOL did stress that the impartial conduct standards imposed by the Rule became effective on the June 9, 2017, applicability date. So advisers must still give prudent advice that’s in the retirement investors’ best interest and charge no more than reasonable compensation.

This finalized rule also extends the temporary enforcement policy instituted by the DOL through Field Assistance Bulletin (FAB) 2017-02, which announced that the DOL won’t pursue claims against fiduciaries who are working diligently and in good faith to comply with their fiduciary duties.

Ultimately, the Rule is still under review by the DOL and they’ll likely use the new transition period to determine possible changes to the Rule. We’ll continue to monitor new developments and report on them in Compliance Corner.

Finalized Rule »
News Release »


November 14, 2017

IRS Employee Plans Memo Provides Guidelines for Missing Participant Audits

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On Oct. 19, 2017, the IRS issued a memorandum to Employee Plans auditors that discusses the steps an employer should take in attempting to locate missing plan participants. As background, the memo specifically addresses how to locate missing participants who may be due required minimum distributions from their 401(k) plan. However, the IRS guidance is also helpful for any situation where an employer must locate participants for purposes of distributing benefits.

The memo specifies that IRS auditors won’t challenge employers for a failure to make certain employee distributions if they:

  1. Searched for alternative contact information in plan, plan sponsor and publicly available records for directories; and
  2. Used a commercial locator service, credit reporting agency or a proprietary Internet search tool for locating individuals; and
  3. Sent mail via United States Postal Service (USPS) to the last known mailing address and attempted contact "through appropriate means for any address or contact information," which includes email addresses and telephone numbers.

These requirements line up with prior DOL guidance on the subject of locating missing participants, so employers who take such steps to locate employees would likely be considered to have met their search obligations as imposed by both the DOL and IRS. The guidance became applicable after Oct. 19, 2017.

Memorandum »


October 31, 2017

IRS Issues 2018 Limits on Benefits and Contributions Under Qualified Retirement Plans

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On Oct. 19, 2017, the IRS issued IRS Notice 2017-64, which relates to certain 2018 cost-of-living adjustments for benefits and contributions under qualified retirement plans.

For 2018, the elective deferral limit for employees who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan increased from $18,000 to $18,500. Additionally, the catch-up contribution limit for employees age 50 and over who participate in any of those plans remains at $6,000. The annual limit for Savings Incentive Match Plan for Employees (SIMPLE) retirement accounts remains at $12,500.

The annual limit for defined contribution plans under Section 415(c)(1)(A) increases to $55,000 (from $54,000), and the annual limit on compensation that can be taken into account for contributions and deductions increased from $270,000 to $275,000. The threshold for determining who is a “highly compensated employee” (HCE) remains at $120,000.

The annual benefit for a defined benefit plan under Section 415(b)(1)(A) increased from $215,000 to $220,000. The dollar limitation concerning the definition of key employee in a top-heavy plan and the limitation on IRA contributions remains unchanged at $175,000.

Cost-of-living adjustments are effective Jan. 1, 2018. Sponsors and administrators of benefits with limits that are changing will need to determine whether their plans automatically apply the latest limits or must be amended (if desired) to recognize the changes. Any changes in limits should also be communicated to employees.

NFP has updated the Employee Benefits Annual Limits white paper to reflect these changes. Please ask your advisor for a copy.

IRS Notice 2017-64 »

IRS Releases October Issue of Employee Plans News

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On Oct. 13, 2017, the IRS released the October edition of Employee Plans News . Although this edition focuses primarily on defined benefits plan guidance, it also includes IRS Chief Counsel Advice Memorandum 201736022, which provides guidance on cure periods for participant loans. As background, IRS regulations require that participant loans feature level amortization of loan repayments over the term of the loan. Participants who miss a payment (because of a leave of absence, for example) are allowed a cure period during which they can repay any missed payments. The memorandum gives two examples on determining the cure period for missed installment loan payments.

The IRS also includes updated Forms 4972 (Tax on Lump-Sum Distributions) and Form 8881 (Credit for Small Employer Pension Plan Startup Costs).

Employers should familiarize themselves with this guidance.

Employee Plans News October 2017 Issue »


October 17, 2017

Legislation Provides Retirement Plan Relief to Hurricane Victims

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Recently enacted legislation (the Disaster Tax Relief and Airport and Airway Extension Act of 2017) and recently released guidance provide retirement plan relief for hurricane victims (including Hurricanes Harvey, Irma and Maria). The legislation specifically relates to retirement plan distributions and loans. On distributions, the 10 percent penalty tax would not apply to qualified hurricane distributions taken by individuals whose principal residence is in a hurricane area (as designated by the President) and who sustained an economic loss due to the hurricane. These non-penalized distributions must be taken between the hurricane start date and Jan. 1, 2019, and are limited to an aggregate of $100,000 (whether received in one or more taxable years). Such distributions can be repaid (in whole or in part), through contributions to the retirement plan. Repayments would be treated as timely rollover contributions, which has the effect of deferring taxation. Instead of repayments, individuals can elect to spread the applicable distribution taxation over a three-year period.

The legislation also provides a special rule relating to hardship withdrawals taken within certain specified dates to build or buy a house in a hurricane area (but only if the withdrawals were not used to build or buy the house because of the hurricane). Specifically, all or a part of the hardship withdrawal amount may be repaid or contributed to an eligible retirement plan on or before Feb. 28, 2018. In that case, the repayment will be treated as a timely rollover contribution.

For loans taken between Sept. 29, 2017, and Dec. 31, 2018, the legislation increases the plan loan limit to $100,000, or 100 percent of an individual’s vested account balance. To take advantage of the increased plan loan limit, the individual must have a principal residence in the hurricane area and must have suffered an economic loss due to the hurricane. Also, such individuals may delay for one year the due date for outstanding loan payments.

Retirement plan sponsors should review their plan designs and work with employees who may have been impacted by any of these three hurricanes. Ultimately, employers may need to work with outside counsel to ensure the relief described above is properly administered.

Disaster Tax Relief and Airport and Airway Extension Act of 2017 »


October 3, 2017

IRS Releases September Issue of Employee Plans News

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On Sep. 21, 2017, the IRS released the September edition of Employee Plans News. This edition includes multiple resources that employers can reference for compliance assistance. Specifically, the edition includes guidance for pre-approved 403(b) plans, which allows employers to adopt an effective date addendum to depict plan operational changes. As background, employers may have adopted certain changes that occurred at different points of time. This guidance allows employers to list those effective dates, even though they are different than the plan’s general effective date.

Additionally, the edition provides a podcast on how to compute the maximum loan amount when a participant takes out multiple loans. Earlier in the year, the IRS came out with guidance on computing the maximum loan amount (as discussed in the Aug. 22, 2017 edition of Compliance Corner). The podcast describes how the IRS will review multiple loans during the course of an audit.

The edition also includes a link to the revised Voluntary Correction Program (VCP) Forms. Plan sponsors can participate in the VCP to rectify certain plan failures. The IRS revised the forms to make them easier to understand and to reflect the changes made to the VCP in January 2017.

The IRS also links to a number of Issue Snapshots. The Snapshots discuss different tax-related issues for practitioners, including the written plan requirement for 457(b) plans, plan aggregation for 403(b) plans, the definition of compensation and partial plan terminations.

Finally, the IRS includes updated publications and Forms, including the publications on tax-sheltered annuities and the Form 5305 series (on individual retirement accounts).

Employers should familiarize themselves with this information.

Employee Plans News September 2017 Issue »

IRS Releases Draft Form and Instructions for Form 5500-EZ

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On Sept. 8, 2017, the IRS released the draft 2017 Form 5500-EZ. Then, on Sept. 20, 2017, the IRS released draft instructions for the Form. As a reminder, Form 5500-EZ is used by a one-participant retirement plan or a foreign retirement plan that does not file electronically on Form 5500-SF.

Last year, the Form 5500-EZ instructions stated that plan sponsors would not be required to enter the preparer’s information at the bottom of the second page of Form 5500-EZ. Furthermore, plan sponsors were instructed to skip questions 4a through 4d (trust information), 13a (confirmation that the plan has been timely amended), 13b (date of last plan amendment), 14 (confirmation that required minimum distributions to five percent owners who have attained age 70 1/2) and 15 (unrelated business taxable income information). These questions (and the line for the preparer’s information) have been removed from the Draft 2017 Form 5500-EZ.

The Principal Activity Codes, which can be found at the end of the Form 5500-EZ instructions, have been updated in the 2017 instructions to reflect changes to the North American Industry Classification System (NAICS).

Draft 2017 Form 5500-EZ Instructions »
Draft 2017 Form 5500-EX »


September 6, 2017

DOL Proposes Extension of Fiduciary Rule Transition Period

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On Aug. 31, 2017, the DOL proposed an extension of the fiduciary rule’s transition period — the rule became effective on June 9, 2017, however, the best interest contract (BIC) exemption and other related prohibited transaction exemptions were not going to become effective until Jan. 1, 2018. The DOL is now seeking to extend the transition period from Jan. 1, 2018 to July 1, 2019.

As we’ve reported in previous issues of Compliance Corner, President Trump requested that the DOL re-examine the rule to determine if it is harmful to American investors. Although the DOL was unable to further delay the effective date of the rule (past June 9, 2017), they did request comments from the public on the rule and on its review. Some of those comments expressed the fact that there is not enough time between now and the Jan. 1, 2018 applicability of the BIC and other related exemptions for the DOL to review the rule. The DOL agreed and expressed a concern that without a delay in the applicability date, parties could incur undue expenses in seeking to comply with a law that could eventually change.

In proposing an extended transition period, the DOL also requested various comments pertaining to the rule. Specifically, they requested comments on how the delay should be structured – based on a fixed period, a contingent delay, or a combination of the two – and on the extension of their temporary enforcement policy. The deadline for comments is Sept. 15, 2017. Additionally, the DOL signaled a desire to coordinate with the SEC on any changes to the rule and to create new and more streamlined exemptions that would recognize innovations in the financial services industry.

The DOL also released Field Assistance Bulletin (FAB) 2017-02, which announces that the DOL will not pursue claims based on arbitration limitation failures. Under the rule, the BIC exemption and other related exemptions are not available to a party if the financial institution’s contract with a retirement investor includes a waiver or qualification of the retirement investor’s right to bring or participate in a class action or other representative court action. The FAB makes it clear that the DOL is essentially no longer defending that provision — as also evidenced by their filings in recent court cases.

Ultimately, the rule is still under review by the DOL and they will likely use the new proposed transition period to determine possible changes to the rule. We’ll continue to monitor new developments and report on them here.

Proposed Rule »
Field Assistance Bulletin 2017-03 »


August 22, 2017

DOL Releases Conflict of Interest FAQs

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On Aug. 3, 2017, the DOL released a second set of Conflict of Interest FAQs that address the Fiduciary Rule’s (the Rule) transition period. Specifically, Transition Period FAQ Set 2 discusses the Rule’s impact on service providers’ IRC Section 408(b)(2) disclosure responsibilities, recommendations to plan participants to increase contributions and recommendations to plan administrators regarding plan design changes intended to increase plan participation.

As it pertains to 408(b)(2) disclosure, the DOL outlines whether certain service providers who are deemed fiduciaries under the Rule will need to change their 408(b)(2) disclosures. As background, covered service providers must generally provide certain disclosures that identify the services they provide to the plan and the compensation the covered service provider expects to receive. The FAQs’ first question essentially asks whether service providers who become fiduciaries as a result of the Rule will need to update their 408(b)(2) disclosures with their status as a fiduciary.

In answering that question, the DOL recognized a couple different groups of service providers. First, service providers who structure their business so that they do not become fiduciaries under the Rule would not be required to disclose their investment advice fiduciary status under 408(b)(2). Second, service providers who will become fiduciaries under the Rule would not be required to actually use the word ‘fiduciary’ in their 408(b)(2) disclosures as long as they accurately describe their services. For this second group, this transition relief would be allowed until the Best Interest Contract exemption becomes applicable (currently scheduled for Jan. 1, 2018); at that time, service providers would have to disclose their fiduciary status in the 408(b)(2) disclosures.

Finally, the DOL noted that a service provider that is becoming a fiduciary under the Rule will need to update the 408(b)(2) disclosure if it currently states that the service provider is not providing fiduciary services. However, they would not have to affirmatively state that they are a fiduciary; they would just need to take out the errant statement that they are not one. Further, a service provider in this predicament should update their 408(b)(2) disclosure as soon as practicable (even if it takes more than 60 days after the June 9, 2017, effective date of the Rule).

As it pertains to recommendations to participants to increase contributions, the DOL uses the FAQs’ second question to explain that the act of encouraging additional savings or contributions to a plan or IRA is not considered investment advice under the Rule. As long as any such recommendations do not include recommendations on any specific investment products, security, or investment property, they would not fall under the Rule. The DOL then gives four examples of communications that would not be considered investment advice.

As it pertains to recommendations to plan administrators regarding plan design changes intended to increase plan participation, the FAQs’ third question makes it clear that a person making recommendations to a plan administrator on ways to increase the employees’ participation in or contributions to the plan would not be considered investment advice under the Rule. Similarly to the second question, these communications would not be subject to the Rule as long as they do not recommend specific investments.

Although these FAQs will not directly affect employers, they are a sign that the DOL is attempting to clarify exactly which communications will be considered investment advice. Employers can also use them to decipher which employer-to-employee communications could place them at risk of having to comply with the Rule.

Transition Period FAQ Set 2 »

IRS Modifies Memorandum on Multiple Loan Restrictions

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On July 26, 2017, the IRS released a memo which clarifies a previous memo issued in April 2017 regarding retirement plan loan rules when a participant requests more than one loan during the year.

As background, the April 2017 memo gave employers instructions on how to calculate the maximum loan amount a participant could take out if the individual had other loans during the same plan year. According to the IRS, the maximum loan amount allowed is restricted to either 50 percent of the participant’s vested account balance or $50,000 minus any outstanding loan balance (whichever is less). Besides being reduced by any existing outstanding loan balance, the $50,000 limit is further reduced by the excess of the highest outstanding loan amount during the prior year over the outstanding loan balance, if applicable. This additional restriction applies to the $50,000 maximum only; it does not apply to the 50 percent vested amount balance.

The April 2017 memorandum, however, misstated the interaction between the current outstanding loan amount and the one-year highest outstanding loan balance. The revised version corrects any confusion by confirming that another loan is allowed if it does not exceed the lowest of $50,000 reduced by the excess amount or is not more than 50 percent of the vested amount when added to the outstanding balance of all other loans.

For example, a participant with a vested balance of $150,000 borrowed $30,000 in February which she repaid in full by April, then in May, she borrowed another $20,000 which was repaid in July. In December, she requests another loan. According to the memo, the plan has two options: The plan could either determine that no further loan could be provided because $30,000 + $20,000 = $50,000, which is the highest outstanding loan balance within one year; or determine that the largest loan during the one-year period is $30,000 and permit the third loan in the amount of $20,000.

Therefore, according to the rules, if a participant made two or more loans in a one-year period, the employer should calculate the highest outstanding balance by using one of the two methods described above. Ultimately, whatever approach the plan adopts must be used consistently and the plan sponsor should outline the methodology in the plan’s loans procedures.

Employers should work with outside counsel in checking their plan design for compliance.

IRS Memo »


August 8, 2017

U.S. Treasury Announces Plans to Wind Down myRA Program

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On July 28, 2017, the U.S. Department of the Treasury (“the Department”) announced that it will begin to phase out the myRA program over the coming months after a thorough review found it not to be cost effective. This review was undertaken as part of the Trump administration’s effort to assess existing programs and promote a more effective government. According to the Department, demand for and investment in the myRA program have been extremely low.

As background, the myRA program was a concept first introduced by President Obama in his January 2014 State of the Union address. The program was an option for individuals who didn’t have access to a retirement savings plan (e.g., 401(k) plan) at work. In addition to setting up contributions via direct deposit through an employer, individuals could set up one-time or recurring contributions to their myRA from a checking or savings account. Savers could also direct all or part of a federal tax refund to their myRA.

As shared in the Feb. 11, 2014, and Nov. 17, 2015, editions of Compliance Corner, features of the myRA program included:

  • Low cost to employers. Employers didn’t administer or contribute to the accounts.
  • Low investment barriers.
  • Principal protection. The accounts were backed by the U.S. government, similar to savings bonds.
  • Contributions could be withdrawn tax-free at any time.
  • Individuals could keep the account if they changed jobs or could roll it over to a private sector plan.

Participants in the myRA program are being notified of the upcoming changes, including information on moving their myRA savings to another Roth IRA. Participants are encouraged to visit www.myRA.gov for additional information or to call myRA customer support with any questions.

Press Release »


July 25, 2017

IRS Updates 401(k) Plan Fix-It Guide

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The IRS recently updated the 401(k) Plan Fix-It Guide to reflect updates to the Employee Plans Compliance Resolution System (EPCRS).

As background, IRS Fix-It Guides provide information on how to identify, fix and avoid common 401(k) plan compliance failures. The recent changes mainly reflect the modifications made to the EPCRS by Revenue Procedure 2016-51.

Specifically, this guide includes a chart on the different correction procedures available to employers who discover certain plan failures. The portions of the chart that address plan documents and amendments, compensation mistakes, excluding eligible employees and participant loans have all been updated to provide additional information and examples of correction methods. For example, the section on plan amendments now discusses the recent revisions to the determination letter program.

Additionally, the guide links to pages on the different 401(k) plan types, EPCRS and additional resources. Although this guide does not impose any specific employer requirements, it does provide valuable information to plan sponsors who are looking to keep their 401(k) plans compliant.

401(k) Plan Fix-It Guide »


July 11, 2017

IRS Issues 2017 Cumulative List of Changes for Use When Requesting Determination Letters

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On June 30, 2017, the IRS released Notice 2017-37, which contains the 2017 Cumulative List of changes the IRS will look to when reviewing opinion letter applications for pre-approved defined contribution plans submitted during the third six-year remedial amendment cycle, which began Feb. 1, 2017, and ends Jan. 31, 2023. Defined contribution plans may be submitted for approval during the on-cycle submission period, which begins Oct. 2, 2017, and ends Oct. 1, 2018.

As background, the 2017 Cumulative List contains items that were included in the 2011-2015 Cumulative Lists or were issued after Oct. 1, 2015. However, if a plan has not been previously reviewed for items on earlier Cumulative Lists, then those items must also be taken into account. At the end of each item in the list, a parenthetical note indicates the year the item first appeared or identifies the item as new. Among other things, the new list:

  • Permits rollovers from a qualified plan to a SIMPLE IRA
  • Allows mid-year changes to safe harbor 401(k) plans under certain circumstances
  • Addresses discretionary changes as a result of the decision in Obergefell v. Hodges
  • Discusses requirements for qualified matching contributions (QMACs) and qualified nonelective contributions (QNECs)

Sponsors and their advisors should carefully review the 2017 Cumulative List to ensure that they have identified the changes in the qualification requirements that will be considered by the IRS in its review of pre-approved plan documents submitted under the pre-approved plan program and that will be considered for purposes of issuing opinion letters.

IRS Notice 2017-37 »

IRS Modifies Determination Letter Procedure

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On June 30, 2017, the IRS released Rev. Proc. 2017-41, through which they announced new procedures for issuing opinion letters on the qualification of pre-approved retirement plans. Specifically, the IRS is modifying the IRS pre-approved letter program by combining the master and prototype (M&P) and the volume submitter (VS) programs into a combined opinion letter program.

In essence, the IRS is seeking to expand the provider market and to encourage employers that currently maintain individually designed plans to convert to the pre-approved format. To do this, the IRS is simplifying the program (by eliminating the distinction between M&P and VS plans), increasing the types of plans eligible for pre-approved status, and revising the program to allow for greater flexibility in the design of pre-approved plans.

Additionally, the IRS modified the on-cycle submission period for third six-year remedial amendment for providers of pre-approved defined contribution plans so that it begins on Oct. 2, 2017, and ends on Oct. 1, 2018.

This Revenue Procedure is effective Oct. 2, 2017. Employers who design their own plans should work with their advisor to determine how this change will affect them.

Rev. Proc. 2017-41 »

DOL Asks for Information Regarding the Fiduciary Rule and Prohibited Transaction Exemptions

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On July 6, 2017, the DOL published a request for information relating to the new fiduciary rule on investment advice conflicts and prohibited transaction exemptions. After a 60-day delay, the new rule and exemptions became effective June 7, 2016. When the DOL announced the 60-day delay, they also amended certain parts of the fiduciary rule and exemptions. Specifically, the DOL amended two exemptions – the best interest contract (BIC) exemption and the prohibited transaction exemption for principal transactions (those involving a financial institution selling from or purchasing for their own accounts) – to include transition relief (through Jan. 1, 2018) requiring adherence to a lesser standard. That lesser standard is referred to as the “impartial conduct standard,” which requires that the fiduciary provide prudent advice in the investor’s best interest, that the fiduciary receive no more than reasonable compensation and that the fiduciary make no misleading statements. Following that amendment, the DOL issued guidance relating to implementation of the rule and exemptions during the transition relief period.

The request for information asks general questions regarding the rule’s implementation, the additional conditions that are supposed to become applicable on Jan. 1, 2018, and the pros and cons of potentially delaying that applicability date. The request also asks specific questions relating to certain potential exclusions from the rule, including whether there should be an exclusion from the rule for communications that encourage an investor to increase or make contributions.

Interestingly, for health and welfare benefits, the request asks questions relating to the contract requirement for IRAs and HSAs and alternatives for bank deposit-type investments for IRAs and HSAs. Although the DOL generally considers HSAs within the scope of the rules, those questions indicate that perhaps the DOL might consider HSA-specific exceptions.

The information request contains no new employer compliance obligations. Those with interest in the DOL’s fiduciary rule and prohibited transaction exceptions should review the request for additional insight and understanding. Comments are due by Aug. 7, 2017 (except for those relating to extending the Jan. 1, 2018 applicability date as to certain provisions, which are due by July 21, 2017).

DOL Request for Information »
DOL Press Release »


May 31, 2017

DOL Provides Fiduciary Rule Guidance Ahead of Effective Date

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The DOL’s Conflict of Interest/Fiduciary Rule (the Rule) is set to become effective on June 9, 2017. The Best Interest Contract (BIC) Exemption and other related prohibited transaction exemptions will also become effective that day. However, as discussed in previous editions of Compliance Corner, the DOL has established a temporary enforcement policy due to President Trump’s request for additional analysis of the rule and its impact on American investors. To provide additional information on the implementation of the Rule, the DOL recently provided a Field Assistance Bulletin (FAB) and a set of FAQs.

Field Assistance Bulletin No. 2017-02
On May 22, 2017, the DOL issued Field Assistance Bulletin No. 2017-02. This FAB reiterates that the DOL will implement a temporary enforcement policy. Specifically, the DOL will not pursue claims against fiduciaries who are working in good faith to comply with the rule during the transition period (June 9, 2017 – Jan. 1, 2018).

The DOL also announced their intent to issue a Request for Information (RFI), which will seek additional public input on possible new exemptions from or regulatory changes to the rule. As a part of the RFI, the DOL is looking for comments on whether firms will need additional time (beyond the Jan. 1, 2018 date) to develop new business models to comply with the rule.

Conflict of Interest FAQs (Transition Period)
The DOL also released a set of FAQs in May. The FAQs answer possible questions about the transition period that will occur between the effective date of the rule and Jan. 1, 2018. The FAQs go into detail about how firms will comply with the rule during that time. Essentially, during the transition period, firms and advisers will need to comply with the “impartial conduct standards” that are prescribed by the rule. These standards require advisers and financial institutions to give advice that is in the “best interest” of the retirement investor, charge no more than reasonable compensation and make no misleading statements about investment transactions, compensation and conflicts of interest.

The FAQs go on to discuss the fact that the DOL will still conduct an analysis of the rule, per the President’s instruction. They also clarify that compliance is not required by close of business on June 9; instead, institutions must comply by 11:59 p.m. that day.

Other questions discuss firms’ compensation systems, the use of robo-advice and transactions involving IRAs. Notably, one FAQ reiterates that furnishing plan information and general financial, investment and retirement information is not investment advice that is covered by the rule.

The DOL ends the FAQs by reasserting that compliance assistance is their goal, rather than citing violations and imposing penalties.

Summary
Since the rule will become effective in the next couple of weeks, many firms have already begun to alter processes to come into compliance. Although the effective date of the rule won’t affect employers in a substantial manner, we will continue to follow the developments and report on any additional DOL guidance in Compliance Corner.

Field Assistant Bulletin No. 2017-02 »
Conflict of Interest FAQs »

IRS Releases Issue Snapshot Regarding Identification of HCEs in Short or Initial Plan Years

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On April 21, 2017, the IRS posted an Issue Snapshot containing a summary of the rules for identifying highly compensated employees (HCEs) for retirement plan purposes in a plan’s initial plan year or in the case of a short plan year. The summary confirms that there are two tests for determining if an employee is a HCE: an ownership test and a compensation test. If the employee satisfies either of the two tests, then they will be an HCE. The summary contains eight examples that apply the two tests under various scenarios.

Under the ownership test, an employee will be found to be an HCE if he is a 5 percent owner at any time during the determination year (the current plan year) or the look-back year (12-month period immediately preceding the determination year). Under the compensation test, an employee will be found to be an HCE if he received compensation from the employer in excess of a certain dollar threshold during the look-back year ($120,000 for 2016).

There are two design alternatives under the compensation test. Under the first alternative, an employee will be an HCE if he received compensation in excess of a certain threshold (as outlined above) AND is in the top 20 percent of employees ranked by compensation for the look-back year. This additional criterion is known as the top-paid group election. The employer may make the election of this alternative for any year. However, once the election is made, it applies until it is revoked. Also under the compensation test, an employer with a non-calendar year plan can elect to have the look-back year be the calendar year that begins with or within the 12-month period immediately preceding the determination year. These alternative elections are not available under the ownership test.

Employers who sponsor retirement plans should refer to this and other Issue Snapshots as a helpful resource, but please note that Issue Snapshots are not to be used as precedent. They are not official pronouncements of law or directives. Issue Snapshots provide an overview of an issue but may not contain a comprehensive discussion of the law.

IRS Issue Snapshot »


April 18, 2017

DOL Finalizes Delay of Conflict of Interest Rule

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On April 7, 2017, the DOL finalized a 60-day delay of the Conflict of Interest Rule applicability date. As we mentioned in recent editions of Compliance Corner, the DOL requested the delay after President Trump instructed the DOL to conduct additional analysis of the rule and its impact on American investors.

The 60-day delay means that the rule will not be effective before June 9, 2017. (The rule was originally set to become applicable on April 9, 2017.) The delay also applies to the prohibited transaction exemptions (PTEs) that are related to the rule. It is presumed that the DOL will now conduct economic and legal analysis of the rule and its impact.

It remains to be seen whether DOL analysis will result in a rescission of the rule or simply a revision. We will continue to follow any developments and provide updates in Compliance Corner.

Final Rule »

Pres. Trump Signs Joint Resolution Nullifying Safe Harbor for State-Run IRA Programs

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On April 13, 2017, Pres. Trump signed H.J. Resolution 67, after it was passed by the House of Representatives and Senate. The resolution nullifies the safe harbor that the DOL recently extended to state-run IRA programs. As background, the final rules on this issue provided “a safe harbor from ERISA coverage to reduce risk of ERISA preemption of the relevant state laws.” In other words, if a state program was designed to meet the safe harbor criteria, a private employer would not be required to meet the ERISA obligations for the plan including plan documents and reporting.

Interestingly, this new bill does not actually stop states from establishing a state-run IRA program that private employers could participate in. However, taking away the safe harbor from ERISA admittedly makes any such program less attractive to employers.

While the nullification of these rules directly affects any states with such a program, it will also indirectly impact employers participating in a state-run IRA.. Should an employer decide to participate in a state-run IRA, they would now have to meet the various fiduciary obligations required under ERISA.

H.J. Res. 66 »
H.J. Res. 67 »
White House Statement »


April 4, 2017

IRS Announces Non-Applicability of Conflict of Interest Rule Excise Taxes

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On March 28, 2017, the IRS released Announcement 2017-4, announcing that they are adopting a temporary non-applicability policy on any excise taxes that could be levied as a result of the DOL’s Conflict of Interest Rule (the Rule). As we reported in the last edition of Compliance Corner, the DOL recently released Field Assistance Bulletin (FAB) No. 2017-01. The FAB announced a temporary enforcement policy related to the DOL’s Rule, which broadens the definition of the term “fiduciary” under ERISA.

In addition to broadening the definition of the term “fiduciary”, the Rule creates new, and modifies existing, prohibited transaction exemptions (PTEs) in order to permit common compensation structures and to cover certain types of transactions. Violations of PTEs can result in excise taxes that are payable to the IRS. However, pursuant to this announcement, the IRS will not apply any excise tax penalties with respect to any transaction or agreement to which the DOL’s temporary enforcement policy applies.

While this temporary non-applicability policy is the IRS’ way of conforming to the DOL’s temporary policy, this is still not an issue that will directly affect employer plan sponsors. Instead, we are providing this information to keep clients and advisers aware of the changes in the Rule. We will continue to follow any developments on the Rule and provide updates in Compliance Corner.

Announcement 2017-4


March 21, 2017

DOL Releases Field Assistance Bulletin Establishing Temporary Enforcement Policy on Conflict of Interest Rule

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On March 10, 2017, the DOL released Field Assistance Bulletin (FAB) No. 2017-01. This FAB announces a temporary enforcement policy related to the DOL’s Conflict of Interest Rule (the Rule). As background, the DOL recently proposed a 60-day delay of the Rule’s applicability date after Pres. Trump instructed the DOL to conduct additional analysis of the Rule and its impact on American Investors.

This FAB addresses the possible compliance gap that could occur should the Rule become applicable before the DOL is able to issue a decision on the proposal for delay. Specifically, on March 2, 2017, the DOL requested a 60-day delay of the Rule, as the original applicability date of the Rule was approaching on April 10, 2017. Although the DOL intends to make a decision on the delay before the original applicability date, they issued this FAB to address investor confusion and to avoid marketplace disruption.

Essentially, according to the FAB, should the DOL issue a final rule delaying the Rule after April 10, 2017, the DOL will not initiate any enforcement action on an adviser or financial institution that did not satisfy the conditions of the Rule during the gap period in which the Rule becomes applicable before a delay is implemented. Additionally, should the DOL not delay the Rule, the DOL will not initiate any enforcement action on any adviser or financial institution that failed to satisfy the conditions of the Rule before the applicability date, as long as the adviser or financial institution satisfies the conditions of the Rule within a reasonable period of time after the publication of the decision not to delay.

While this temporary enforcement policy will not directly affect employer plan sponsors, it may affect whether or not those plan sponsors receive certain communications from their advisers and financial institutions. We will continue to follow any developments and provide updates in Compliance Corner.

FAB No. 2017-01 »


March 7, 2017

DOL Requests 60-day Delay of Conflict of Interest Rule

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On March 1, 2017, the DOL proposed a 60-day delay of the Conflict of Interest Rule applicability date. As we mentioned in the last edition of Compliance Corner, the DOL requested the delay after President Trump instructed the DOL to conduct additional analysis of the Rule and its impact on American Investors. This delay applies to the Rule and to the prohibited transaction exemptions that accompany the Rule.

There will now be two comment periods where interested entities can comment on both the delay of the Rule and the concerns addressed in the President’s memorandum. The comment period on the delay will be 15 days and the comment period on the concerns in the President’s memorandum will be 45 days.

It remains to be seen whether the comment period and subsequent DOL analysis will result in a rescission of the rule or simply a revision. We will continue to follow any developments and provide updates in Compliance Corner.

Delay Request »

IRS Releases Employee Plans News Issue 2017-2

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On March 2, 2017, the IRS released Employee Plan News Issue 2017-2. This edition includes multiple resources that employers can refer to for compliance assistance. One such resource is this year’s operational compliance list, which discusses the various regulations that the IRS will be proposing and finalizing during this fiscal year.

The issue also includes an article on self-correcting defective 403(b) plan provisions. 403(b) plan sponsors can correct these defective provisions during the remedial amendment period by adopting a pre-approved plan or by amending their individually designed plan. The article also includes five examples of available relief.

The IRS also provided a snapshot on catch-up contributions. As background, there are times when a participant may defer an amount in excess of the limits imposed under the IRC. These contributions are called catch-up contributions, and there are specific rules on who is eligible to make these contributions. In addition to discussing those rules, the snapshot gives examples of how the limits apply.

Another article in this issue discusses the substantiation guidelines for safe-harbor hardship distributions from 401(k) plans. Although written to be used by IRS examination employees, the guide gives valuable information concerning the circumstances under which the hardship distribution can be taken. Employers should review the guidelines to ensure that hardship distributions are administered appropriately.

Finally, the IRS included links to two YouTube videos on rollovers, Publication 560 (Retirement Plans for Small Business), and the Retirement Plan Reporting and Disclosure Guide.

Employers sponsoring retirement plans should familiarize themselves with the information provided in this issue, as it could prove helpful in the administration of the plan.

Employee Plan News Issue 2017-2


February 22, 2017

DOL Requests Delay of Conflict of Interest Rule

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On Feb. 9, 2017, the DOL requested a delay in the applicability date of the Conflict of Interest Rule. As background, the rule was set to take effect on April 10, 2017. However, President Trump recently instructed the DOL to conduct additional analysis of the rule and its impact on American investors.

The request is currently reflected on the Office of Management and Budget website. Before the delay is granted, there will likely be a comment period. We will continue to monitor this situation and provide additional information as it becomes available.

Delay Request »


February 7, 2017

Pres. Trump Seeks Additional Analysis of DOL’s Conflict of Interest Rule

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On Feb. 3, 2017, Pres. Trump published a memorandum to the DOL, instructing the DOL to analyze the Conflict of Interest Rule (the Rule) and its impact on American investors. The Rule, which is set to take effect on April 10, 2017, expands ERISA’s definition of “fiduciary” by identifying additional forms of communication that would constitute investment advice and would deem the giver of such advice a fiduciary under ERISA.

Citing a desire to “empower Americans to make their own financial decisions,” Trump directed the DOL to examine the Rule and determine if it will adversely affect Americans’ ability to receive retirement information and financial advice. Pursuant to that examination, the DOL is being tasked with preparing an updated economic analysis concerning any possible impact of the Rule. The memo further requires the DOL to rescind or revise the Rule if its impact is found to be inconsistent with the policy of the Administration.

Although the memo did not include a required delay, the DOL has come forward saying that they will consider whether to delay the applicability of the rule. However, until they provide additional information, the applicability date of the rule is still April 10, 2017. Because the Rule was finalized and published, its repeal is a complicated process that cannot be achieved through presidential memorandum alone. The White House will have to work with the DOL and Congress to make any permanent changes to the Rule.

We will continue to monitor this situation and provide additional information as it becomes available.

Presidential Memo »

IRS Releases Updated Publication 560 for Retirement Plans for Small Business

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On Jan. 26, 2017, the IRS released the 2016 version of Publication 560, Retirement Plans for Small Business. This publication discusses retirement plans that small business owners can establish for themselves and their employees. The publication specifically addresses Simplified Employee Pensions (SEPs), SIMPLE Plans, and Qualified Plans and the IRC’s requirements for each.

This edition of the publication has been updated to reflect limits for 2016 and 2017, including the compensation limits, the elective deferral limit, the defined contribution limit, the SIMPLE plan salary reduction contribution limit and the catch-up contribution limit.

The publication also includes deduction worksheets for the self-employed and information on how small businesses can obtain tax help.

Publication 560 »


January 24, 2017

DOL Releases Two Conflict of Interest Rule FAQs and Proposes Rule on the Best Interest Contract Exemption for Insurance Intermediaries

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The DOL has released multiple documents relating to the Conflict of Interest Rule (the Rule). As background, the Rule amends ERISA’s definition of ‘fiduciary’ by considering more communications to be investment advice that renders the person providing that advice a fiduciary. Additionally, the DOL introduced new prohibited transaction exemptions (PTEs) and amended others in order to permit common compensation structures and to cover certain types of transactions.

FAQ Part II
On Jan. 13, 2017, the DOL released the second set of FAQs on the Rule. This FAQ addresses technical questions about the interpretation of the rule. The FAQs are divided into sections on the following topics:

  • Qs1-7 address which communications constitute a fiduciary recommendation;
  • Qs8-15 clarifiy the distinction between investment education and fiduciary recommendations;
  • Qs16-20 explain which communications are considered general communications or fall under the ‘hire me’ exception;
  • Qs21-29 describe the independent fiduciary exception and how it applies to certain representations;
  • Qs30-35 expound on the ‘platform exception’ that applies to service providers who may select and monitor investments for plan fiduciaries.

Conflict of Interest Rule FAQs Part II »

Consumer Protections for Retirement Investors – FAQs on Your Rights and Financial Advisers
On Jan. 13, 2017, the DOL also released a set of FAQs geared towards consumers. Specifically, these FAQs are designed as a resource that the DOL is providing to assist retirement investors in understanding the Rule and properly questioning their financial advisers.

The FAQs are divided into sections on the background of the Rule, on Advisers, on IRAs, 401(k) Plans and HSAs, and on Timing. The DOL also lists various government resources that consumers can go to for additional information on investments and investment advisers. At the end of the FAQs, the DOL also provides an appendix of questions that investors can ask their financial advisers.

Although these FAQs are geared towards individual retirement investors, it would be helpful for employers to familiarize themselves with these concepts in the event that they receive questions on this subject from their employees.

FAQs on Your Rights and Financial Advisers »

Proposed Best Interest Contract Exemption for Insurance Intermediaries
On Jan. 19, 2017, the DOL released a proposed rule explaining the Best Interest Contract (BIC) exemption for insurance intermediaries. As background, the BIC exemption is the main exemption that will cover investment advice to individuals, and allow advisers to receive compensation through transactions that would otherwise be considered prohibited. These proposed rules would allow certain insurance intermediaries to receive compensation connected to sales of fixed annuities.

Insurance intermediaries are entities that support insurance agents by recruiting and training them to distribute certain insurance products. This exemption would specifically apply to fixed annuity contracts. As long as the insurance intermediary meets the definition of a “financial institution”, then the insurance agents they contract with would be allowed to receive compensation connected to the sale of fixed annuities.

Insurance intermediaries will meet the definition of “financial institution” if they have a written contract with the insurance company and the adviser who will be recommending and distributing fixed annuities. Further, the insurance intermediary must have $1.5 billion in premiums from fixed annuities for each year of the last three years.

Similar to the requirements under the BIC exemption, insurance intermediaries relying on this proposed exemption would have to acknowledge their fiduciary status (and the fiduciary status of their advisers) in a written contract. They will also have to adhere to basic standards of impartial conduct such as giving prudent advice that is in the customer’s best interest, avoiding misleading statements and only receiving reasonable compensation.

The DOL proposes that this exemption be available to insurance intermediaries on April 10, 2017, with transition relief available between that time and Aug. 15, 2018.

Proposed Best Interest Contract Exemption for Insurance Intermediaries »

Given the inauguration of the new administration, it’s hard to know what the future of the Conflict of Interest rule will be. However, we will continue to monitor any developments and discuss them in Compliance Corner.

IRS Proposes Rule Changing Definitions of Qualified Matching Contributions and Qualified Non-Elective Contributions

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On Jan. 18, 2017, the IRS issued proposed regulations amending the definitions of qualified matching contributions (QMACs) and qualified non-elective contributions (QNECs) relating to certain qualified retirement plans that contain cash or deferred arrangements or that provide for matching contributions or employee contributions.

Under the proposed regulations, employer contributions to a plan would be able to qualify as QMACs or QNECs if they satisfy applicable non-forfeitability and distribution requirements at the time they are allocated to participants’ accounts, but need not meet these requirements when they are contributed to the plan. This change allows amounts held as forfeitures in a 401(k) plan to be used to fund qualified non-elective contributions (QNECs) and qualified matching contributions (QMACs).

The IRS is accepting comments on the proposed regulations. These regulations are proposed to apply to taxable years beginning on or after the date that the final regulations are published in the Federal Register. In the meantime, taxpayers may rely on the proposed regulation.

Employers maintaining tax-qualified plans that contain cash or deferred arrangements or provide for matching contributions or employee contributions should take note of these proposed changes.

Proposed Rule »


January 10, 2017

IRS Publishes Employee Plans News Issue No. 2016-13

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On Dec. 16, 2016, the IRS published Employee Plans News Issue No. 2016-13. In this edition, the IRS advised that the Filing Information Returns Electronically (FIRE) Production System is down for yearly updates, provided additional instructions for Forms 8950 and 14568-B for Voluntary Correction Program (VCP) submissions, introduced procedures for Puerto Rico plan sponsors to make an ERISA 1022(i)(2) election, introduced a webinar about the IRS Tax Calendar for businesses and self-employed individuals, highlighted Notice 2016-67 (related to implicit interest pension equity plans), identified updated publications, and reemphasized previously issued security reminders.

The FIRE production system, which is used to electronically file certain forms, will be down until Jan. 16, 2017, for yearly updates. Forms 1042-S, 1097, 1098, 1099, 3921, 3922, 5498, 8027, 8955-SSA, and W-2G may be filed electronically via the FIRE production system.

Revenue Procedure 2016-51 provides the instructions for making VCP submissions to the IRS. Forms 8950 and 14568-B have not yet been updated to account for these new instructions. Until they are updated, VCP filers are advised to follow additional instructions mentioned in this edition in relation to the forms.

A Puerto Rico retirement plan administrator can elect to have the plan treated as a qualified plan under IRC section 401(a). The process for making the election, allowed through an ERISA 1022(i)(2) election, is provided for in this edition.

The IRS has an interactive online tax calendar for businesses and self-employed individuals. This issue contains a link to a webinar describing the calendar and how it can be utilized.

Also mentioned is the release of Notice 2016-67. In Notice 2016-67, the IRS addresses the applicability of IRC Section 411 (b)(5)(B)(i), which deals with the market rate of return limitation rules, to implicit interest pension equity plans (a type of pension equity plan that applies a deferred annuity factor to the participant’s accumulated benefit in order to determine deferred benefits).

Further, this edition identifies the following IRS publications as having been updated: Publication 4285 (SEP Checklist); Publication 4286 (SARSEP Checklist); Publication 4334 (SIMPLE IRA Plans for Small Businesses); Publication 4587 (Payroll Deduction IRAs for Small Businesses); Publication 4674 (Automatic Enrollment 401(k) Plans for Small Businesses); and Publication 4806 (Profit Sharing Plans for Small Businesses).

During 2016, the IRS has released warnings of various security issues tax professionals and taxpayers should be aware of and how to protect themselves from various schemes. This edition of Employee Plans News provides links to the security reminders that have been provided this year.

Employers sponsoring plans that could be affected by these provisions should review this guidance to ensure compliance.

Employee Plans News Issue No. 2016-13 »

DOL Issues Final Regulations on Savings Arrangements Established by Political Subdivisions for Non-Governmental Employees

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On Dec. 20, 2016, the DOL issued final regulations on savings arrangements established by political subdivisions, such as cities and counties. As background, the DOL issued final rules for state-run IRA programs back in August 2016 (covered in the Sep. 7, 2016, edition of Compliance Corner). Those final rules created a safe harbor from ERISA for state-run IRA programs that met certain conditions. In addition to those final rules, the DOL issued proposed rules that would allow political subdivisions of states to establish similar programs.

The final regulations reflected in this article amend the current regulations to cover programs offered through certain qualified political subdivisions. The regulations specify that qualified political subdivisions are governmental units of a state which meet the following criteria:

  • The political subdivision must have implicit or explicit authority under state law to require employers’ participation in the payroll deduction savings program.
  • The political subdivision must have a population equal to or greater than the population of the least populous state.
  • The political subdivision cannot be within a state that has enacted a mandatory statewide payroll deduction savings program for private-sector employees; nor can the political subdivision have geographic overlap with another political subdivision that has enacted such a program.
  • The political subdivision must implement and administer a retirement plan for its employees.

Qualified political subdivisions may design and operate payroll deduction savings programs, which non-governmental employees may participate in, without causing the city or county or the participating employers to become subject to ERISA. Similar to the rules imposed on state programs, the final rule on qualified political subdivisions reiterates the safe harbor’s conditions, many of which limit the employer’s role in the program.

Specifically the employers’ activity must be limited to certain ministerial activities such as collecting and remitting payroll deductions, providing program information and notice to employees, and keeping records. Additionally, employers cannot contribute to the IRAs and must promptly transmit employee contributions to the program.

The final regulation will be effective 30 days following the Dec. 20, 2016, publication.

While these rules are directed to counties and cities wishing to establish such programs, the rules are important for employers to understand. Please contact your adviser if you become subject to such a program.

Final Regulations »
Fact Sheet »

IRS Simplifies User Fee Exemptions for Small Employers Submitting Determination Letter Applications

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On Dec. 16, 2016, the IRS issued Notice 2017-1, simplifying the requirements for certain small employers to avoid paying a user fee when submitting a recently established retirement plan for a determination letter. IRC Section 7528(b)(2) provides a user fee exemption for certain requests to the IRS for determination letters with respect to the qualified status of small employer pension, profit-sharing, stock bonus, annuity, and employee stock ownership (ESOP) plans. Originally, the exemption was not available to requests made after the plan’s first five years of existence (the remedial amendment period).

In light of changes to the remedial amendment period, as set forth in Revenue Procedure 2016-37, the IRS will treat an application for a determination letter as being filed within a qualifying open remedial amendment period (typically the five-year period) if the plan meets the 10-year rule (the plan was first in existence no earlier than January 1 of the 10th calendar year in which the determination letter application is filed).

Small employers with pension, profit-sharing, stock bonus, annuity, and ESOPs should be aware of this change when filing for a determination letter.

Notice 2017-1 »

IRS Issues Updated Instructions for IRS Form 5300

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In January 2017, the IRS issued updated Form 5300 instructions. Form 5300 is used to apply to the IRS for a determination letter of initial qualification of a defined contribution or defined benefit plan. Many of the revisions reflect the changes affecting individually designed plans described in Rev. Proc. 2016-37, including eliminating 5-year remedial amendment cycles and generally limiting determination letter requests to initial plan qualification and termination.

Other changes are intended to reduce burdens on filers. Those using Form 5300 should follow these updated instructions.

Form 5300 Instructions »