As discussed in our most recent blog post, the SECURE Act increased the IRS penalties for failure to file Form 5500 by ten times effective December 31, 2019. The IRS now has the authority to assess a penalty for late filers up to $250 a day, up to a maximum penalty of $150,000 per plan year. But even with the increase in the IRS penalties, they still pale ...
As we continue our review of the SECURE Act, we turn our attention to a new optional provision that is designed to help defray the costs of adoption and child-birth. This new distribution option was created when the SECURE Act expanded the list of items excluded from the additional income tax on early distributions contained in IRC Section 72(t).
As discussed in our previous blog post, the SECURE Act changes the date that employees are required to begin making retirement distributions from qualified plans from the April 1st after reaching age 70 ½ to the April 1st after reaching age 72. This is not the only significant change made to the required minimum distribution rules. The SECURE Act ...
Changes have been made to the penalties that may be assessed against employers since our last article on Form 5500 filings. As a reminder, Form 5500 is the information return that must be filed by most employee benefit plans subject to ERISA (unless an exception applies), and failure to file this annual return for a plan can result in assessment of ...
This continues our series of posts regarding the SECURE Act of 2019. As discussed in our previous articles, Cadillac Tax Sent to the Junkyard… and 72 is the New 70 ½ for RMD’s…, the SECURE Act has made numerous changes to taxes, health plans, and, now, even retirement plans.
Effective for plan years beginning after December 31, 2020, the SECURE ...
Along with the impact that the SECURE Act has on retirement plans, the Act will also affect health and welfare plans. The SECURE Act modified parts of current legislation put into place by the Affordable Care Act (ACA). Welcome changes made by the Act are the repeal of the medical device tax, a 2.3% excise tax on certain devices such as pacemakers, and ...
School administrators and health care professionals may have difficulty navigating the HIPAA privacy rules and the requirements of the Family Educational Rights and Privacy Act (“FERPA”) when dealing with the health information of students. In 2008, the U.S. Department of Education (“DOE”) and the U.S. Department of Health and ...
As you have likely seen by now, over the weekend President Trump signed the Setting Every Community Up for Retirement Security Act (the “SECURE Act”) into legislation. This is the largest piece of legislation impacting retirement plans since the PPA was enacted in 2006. We will be addressing the impact of this legislation on your plan over a ...
The IRS again announced that it is extending the deadline for large employers (generally those with 50 or more full-time equivalent employees in the previous year) and self-insured group health plans to distribute their Forms 1095-C to employees and plan participants. The normal deadline to distribute Forms 1095-C is January 31st. This IRS ...
Now that the cost of living adjustments have been issued for 2020, it is time for plan sponsors to finalize and issue their annual notices to participants. The 401(k) safe harbor, qualified default investment alternative (“QDIA”), and automatic enrollment notices must all be sent to plan participants between 30-90 days before the beginning ...