Under IRS guidance, participants can select to convert their entire pre-tax balance or a portion of it; they often have a lot of questions about the right amount to convert, and when to make the move.
An IRS compliance project found some profit sharing, including 401(k), plan sponsors did not understand when a complete discontinuance of contributions occurs.
The $6,900 limitation as the maximum deductible HSA contribution for individuals with family coverage under an HDHP who contribute to an HSA will remain in effect for 2018.
The agency ended its determination letter program effective in 2017, but said it will measure the need for exceptions in a variety of ways including annual input from the Employee Plans (EP) community.
With the passage of the Senate’s version of tax reform, the stage is set for a bicameral conference committee process through which a select group of legislators will try to rectify the House and Senate bill texts.
Among other amendments that have already emerged in both the
House and the Senate tax proposals, it seems nonqualified deferred compensation
plans will more or less be left alone.
Analysts warn it’s too soon to tell what middle ground, if
any, may be reached between the House and Senate; for now 401(k) retirement
plan deferrals appear to be mostly unaltered, but other important changes are
proposed.
For example, the agencies hope to issue final regulations regarding qualified nonelective contributions (QNECs) and qualified matching contributions (QMACs).
It appears 401(k) contributions won’t be affected by tax
reform, but one industry veteran warns the process is still only just beginning—and
that tax uncertainty is “unfortunately not likely to ever go away.”
Find here a link to our sister publication’s chart denoting
the 2018 maximum benefit and contribution limits set by the IRS, including current
and historical limits on all types of tax-advantaged retirement accounts.