Tag: IRS

Assessing Likely Impacts of IRS Hardship Withdrawal Rule Changes

New rules established by Congress and the IRS simplify the process for participants to request a hardship withdrawal of DC plan assets; some experts say this could increase “leakage,” while others anticipate more positive effects, such as lower debt among cash-strapped participants.
Art by Hye Jin Chung

Strategies to Manage Retirement Plan Loans

Enshrining these in a well-crafted loan policy statement can help plan sponsor clients take control of leakage and excess early withdrawals; like any stated compliance policy, what is written must be followed.

Puerto Rico Treasury Updates 2019 Contribution/Benefit Limits

The Puerto Rico Internal Revenue Code of 2011 requires that, before the beginning of each taxable year, the PR Treasury provide notice of the applicable limits under Section 401(a) of the U.S. Internal Revenue Code of 1986, which are incorporated by reference into the Puerto Rico Code limits.

IRS Offers Relief for 403(b) Plans Excluding Certain Part-Time Employees

Under the once-in-always-in exclusion condition, for a 403(b) plan that excludes part-time employees from making elective deferrals, once an employee is eligible to make elective deferrals, the employee may not be excluded from making elective deferrals in any later exclusion year on the basis that the employee is a part-time employee.

IRS Revenue Procedure Takes VCP Program Digital

In announcing a new digital process for self-disclosures and corrections of plan errors, the IRS also says it is currently developing guidance on “other issues relating to the Employee Plans Compliance Resolution System.”