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.
The new forms include important modifications.
The guidance covers verification procedures, timely loan and hardship withdrawal repayments, and health care coverage.
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.
The tables are to be used for determining contributions to DB plans and permitted disparity in DC plan contributions.
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.
The agency has told examiners not to challenge plan sponsors who have taken these steps.
To qualify for this relief, hardship withdrawals must be made by March 15, 2018.
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.”
ICMA-RC says the IRS favorable letter ruling is the first to adapt the auto-enrollment rules to a governmental 457(b) plan.
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.
Participants can also refinance a loan and replace it with a new loan.
The contribution limit to defined contribution (DC) plans has been increased by $500.
Advisers can help plan participants understand their hierarchy of needs, framing guidance to fit the context of whatever additional relief Congress may provide.
The agency issued its Tax Exempt and Government Entities FY 2018 Work Plan.
Safe-harbor plan designs allow plan sponsors to avoid nondiscrimination testing and allow highly compensated employees to contribute more.
Plan sponsors of tax favored retirement plans can use these forms to make an IRS Voluntary Correction Program (VCP) submission.
Some sponsors that want to use a pre-approved plan have certain provisions that were not in effect for the plan for the entire restatement period or options that have changed during the restatement period.
One thing the NIRS suggests is to change the tax credit to a savings match.