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. Things that participants need to know: In order to take a hardship distribution, your employer’s plan must allow for … Read more

Who is a Harvey affected individual?

Relief is extended to any participant whose principal residence and/or place of employment on August 23, 2017 was in one of the counties identified for individual assistance by FEMA because of Hurricane Harvey.  It also allows participants who do not live in affected areas to qualify for relief if they have parent, grandparent, child, grandchild, … Read more

Participant notice relief

The deadlines for certain participant notices have been extended due to 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 administrator cause the delay.  For this exception to apply, … Read more

No Harvey Relief for Certain Deadlines

The IRS, DOL and PBGC promptly issued Harvey 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

Harvey 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 – … 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 … Read more

Hurricane Harvey PBGC relief

The PBGC has announced Harvey relief in PBGC Disaster Relief Announcement 17-09.  The relief is for “designated individuals” which aligns with the IRS’s affected individuals. Premium Filings – For PBGC premium filings due August 23, 2017 or later, the PBGC will not charge  penalties if the filing is made by January 31, 2018.  However, the … Read more

Harvey 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 August 23, 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

Harvey Employer Contributions

In TX-2017-09, the IRS extended the filing deadline to January 31, 2018 for income tax returns due between August 24, 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

Hurricane Season Begins

Another hurricane season is upon us! The Atlantic hurricane season begins June 1st. The IRS offers these suggestions for preparing for a natural disaster: • Safeguard records – Make backup copies of important records and store the backup separately from the originals. Consider using electronic backup copies.• Inventory belongings – Create an inventory of possessions … Read more