Tax Reform: IRAs, Qualified Plans, 529s, and Other Savings Arrangements Impacted
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In This Issue
Legislative and Washington DC Tax Reform: IRAs, Qualified Plans, 529s, and Other Savings Arrangements Impacted Abstract: The Bill will affect retirement and other tax-advantaged savings arrangements and, in some cases, will become effective as soon as it is signed. Highlights of the changes made to savings arrangements and their effective dates are described here. Source: Ascensus.com Tax Reform: Retirement Plan Changes in the Tax Cuts and Jobs Act Abstract: While many retirement plan changes had been included in the separate bills passed by the House and the Senate, only a few survived the committee of House and Senate members that was convened to hammer out the differences between the two versions of the bill. The Act makes significant changes to both individual and corporate taxation, it only makes modest changes to retirement plans. Here is a brief summary. Source: Jpmorgan.com »» Click here for more on Legislative Actions General Items Small Employer Credit for Retirement Plan Start-Up Costs Abstract: For small employer retirement plans, a tax credit of up to 50% of the first $1,000 in "eligible start up costs" may be available to offset establishment and administration costs. This credit is available for each of the first three years of the plan. Source: Consultrms.com Abstract: This chart compares a SEP with a safe-harbor 401k plan and is especially important for employers who must cover participants other than just the owners. Source: Consultrms.com Fiduciary and Plan Governance Material Plan Sponsors Need to Deal With a Whole New 401k World Abstract: Retirement plan sponsors need to understand the increased potential liability as plan fiduciaries and the best way to understand the changes that have taken place in the 401k plan business over the last 20 years. This article will let 401k plan sponsors understand how and why they need to be more vigilant in their role as a 401k plan fiduciary. Source: Jdsupra.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Canadian Plan Sponsors Favoring Group RRSPs, DPSPs Over DC Plans Abstract: Canadian employers in search of simpler retirement products for their workers are looking to group registered retirement savings plans and deferred profit-sharing plans as a solution, say experts at capital accumulation plan providers. Source: Benefitscanada.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers 2018 Predictions for 401k Advisers, Distributors and Recordkeepers Abstract: Aon Hewitt Investment Consulting must defend allegations that it acted imprudently by selecting and monitoring certain investment options, including JPMorgan's target-date funds, in Safeway's 401k plan. Source: Investmentnews.com (registration may be required) 403b Plans Fee Structure and Evaluation in 403b Plans Abstract: This 13-page PSCA 403b Snapshot Survey reflects responses from 250 not-for-profit organizations that currently sponsor a 403b plan. The survey was conducted online in October/November 2017 and asks sponsors questions regarding how plans fees are structured, administered, and evaluated. Source: Psca.org Survey: 403b Sponsors Need More Information on Their Plan Design Abstract: PSCA's annual survey shows that 403b plans have made significant improvements in plan administration. This snapshot survey highlights how additional focus evaluating fees and expenses as well as implementing a prudent, documented process might help to mitigate the risks plan fiduciaries face. Source: Principal.com 403b Loans: Maximums and Cure Periods Abstract: In 2017, the IRS issued two memoranda regarding 403b plan loans and how those loans should be administered. First, in April, the IRS presented two different options to calculate loan maximums under Internal Revenue Code Section 72(p). The second IRS memorandum focused on cure periods. This article reviews the details. Source: Ntsa-net.org »» Click here for More 403b Material Court and Legal Sixth Circuit Holds That a Divorce Decree Should Be Treated as a QDRO Abstract: Upon reviewing the case, the Sixth Circuit Court of Appeals stated that the divorce decree suffices as a qualified domestic relations order that "clearly specifies" plaintiff as the beneficiary under ERISA, 29 U.S.C. Section 1056(d)(3)(C), so that plaintiff is entitled to the benefit from the plan specified in the divorce decree. Source: Erisalawyerblog.com Fifth Circuit Borrows One-Year Statute of Limitations for Section 502(c)(1) Claim Abstract: The Fifth Circuit held that the statute of limitations for an ERISA Section 502(c)(1) claim -- a claim for penalties for failure to provide certain documents within thirty days of a written request -- was subject to a one-year statute of limitations. Source: Erisapracticecenter.com »» Click here for more Court and Other Legal Issues Compliance and Regulatory Puerto Rico Treasury Issues Guidance on Retirement Plan Limits for 2018 Abstract: On December 15, 2017, the Puerto Rico Treasury Department issued Circular Letter of Tax Policy 17-02 (CLTP 17-02), formally announcing the key pension limits for 2018. Source: Groom.com PBGC Offers Missing Participants Program to DC Plans Abstract: PBGC is expanding its Missing Participants Program to terminated defined contribution and other plans in an effort to connect more people to their retirement savings. The expanded program is voluntary for DC and small professional service plans and will be available for plans that terminate on or after January 1, 2018. Source: Planadviser.com »» Click here for more Compliance and Regulatory Material Marketplace News Securian Adds Retirement Plan Sales VPs Darren Headley Joins Pavilion as Consultant to DC Clients »» Click here for More Marketplace News
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