Bipartisan Budget Act of 2018

The Bipartisan Budget Act of 2018 was signed on February 9, 2018.  The act contains disaster relief relating to the California Wildfires. Qualified Wildfire Distributions: An affected individual may take a distribution up to $100,000.  The additional 10% tax on early distributions imposed by Sec. 72(t) will not apply for qualified wildfire distributions.  Income inclusion … 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.  Relief is only available through January 31, 2018. Things that participants need to know: In order to take a … Read more

Who is a California wildfire affected individual?

Relief is extended to any participant whose principal residence and/or place of employment on October 8, 2017 was in one of the counties identified for individual assistance by FEMA because of the California wildfires.  It also allows participants who do not live in affected areas to qualify for relief if they have parent, grandparent, child, … Read more

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

Wildfire 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 October 8, 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

Wildfire Employer Contributions

In CA-2017-06, the IRS extended the filing deadline to January 31, 2018 for income tax returns due between October 8, 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