DOL Investigations: Establishing a Standard to Go By

  “We’re establishing a standard for you to go by.” That is how J.K. Nowiejski of Nova 401(k) Associates characterized the Department of Labor’s (DOL) approach in auditing and investigating retirement plans. He was joined by Drinker Biddle Reath LLP Partner Heather Abrigo in addressing trends in government audits and investigations in an Oct. 25 … Read more

Special disaster-related rules for use of retirement funds-until December 31, 2018

The 10% penalty on early withdrawals from retirement plans for individuals who have a principal residence in the disaster relief area and suffered economic loss would be waived. The aggregate amount of distributions received by any individual is limited to $100,000, less prior withdrawals for disaster relief. Individuals would be permitted three years to repay … Read more

Funding and AFTAP Relief for Hurricane Harvey and Hurricane Irma

In IRS Notice 2017-49, the IRS issued additional relief for defined benefit plans affected by Hurricane Harvey and Hurricane Irma.  If a plan qualifies the minimum funding deadline and the AFTAP deadline is extended to January 31, 2018.  To qualify a plan, must be an Affected Plan in an Affected Area. An Affected Area is … Read more

Irma Relief for 401(k) contributions and loan repayments

The Department of Labor (DOL)  recognizes that some employers and service providers acting on the employer’s behalf, such as payroll processing services, located in identified covered disaster areas will not be able to forward participant payments and withholdings to employee retirement benefit plans within the prescribed timeframe. In such instances, the DOL will not – solely on … Read more

Participant notice relief

The deadlines for certain participant notices have been extended due to Hurricane Irma.  This is identical to the relief issued for Hurricane Harvey. Blackout notices – In general there is a requirement that blackout notices be provided 30 days in advance.  The existing blackout rules provide an exception when circumstances beyond the control of the plan … Read more

Hardship distribution relief for participants

The IRS has issued relief to make it is easier for participants to take hardship distributions from 401(k) plans.   The IRS has relaxed certain documentation requirements, but has not totally eliminated the need for documentation.  Irma relief is only available through January 31, 2018. Things that participants need to know: In order to take … Read more

Irma Form 5500 Relief

The Form 5500 deadline has been extended to January 31, 2018 for Forms 5500, Forms 5500-SF and Forms 5500-EZ that would have been due between September 4, 2017 and January 31, 2018.  This automatically extends the deadline for Summary Annual Reports and small defined benefit plan Annual Funding Notices. In order to qualify for relief, … Read more

Administrative Relief on Loans and Hardship Distributions

The IRS has provided employers with some administrative relief to make it easier to offer loans and hardship distributions. Delayed amendments – The IRS will allow plans that do not offer loans and hardship distributions to administratively adopt those provisions and then amend the plan no later than the end of the first plan starting after … Read more

Irma Employer Contributions

In FL-2017-04, the IRS extended the filing deadline to January 31, 2018 for income tax returns due between September 4, 2017 and January 31, 2018.  Deadlines for certain employer contributions to retirement plans key off of fully extended tax filing deadlines.  Thus, when the fully extended tax filing deadline is delayed, the employer contribution deadline … Read more

No Irma Relief for Certain Deadlines

The IRS, DOL and PBGC promptly issued Irma relief on many topics.  However, there are some items for which no relief was granted. Participants There is no relief from the 10% early withdrawal tax for hardship distributions from 401(k) plans.  Thus, if a participant takes a hardship distribution and is under the age of 59 … Read more