Tax Reform Pending in Congress

Tuesday, December 5, 2017

As of this writing, the House and Senate have each passed their versions of tax reform. It appears that the proposed changes to qualified plan limitations have not been realized in either version. There are other provisions in both the House and Senate bills that could affect the retirement plan system. We will provide a […]

IRS Announces Cost of Living Adjustments (COLA) for 2018

Tuesday, December 5, 2017

The IRS has announced cost of living adjustments (COLA) applicable to qualified plans for 2018. The limit on elective deferrals to 401(k), 403(b) and 457(b) plans will increase from $18,000 to $18,500. Catch-up contributions will remain limited to $6,000. The limitation on contributions to participants (including elective deferrals but excluding catch-up contributions) increases from $54,000 […]

QDROS: How to Divide Retirement Assets Upon Divorce

Tuesday, December 5, 2017

When qualified plan benefits are the subject of a negotiated divorce settlement, an order detailing the division of the retirement accounts must be drafted to comply with the plan and approved by a court. The “Qualified Domestic Relations Order” establishes the right of a participant’s spouse or dependents under the plan to receive benefits. Click […]

Compliance Spotlight: IRS Announces Compliance Priorities for 2018

Tuesday, December 5, 2017

In September, the Tax Exempt/Government Entity division of the IRS announced their 2018 compliance program. Their “compliance strategies” for examining retirement plans during the next year target plans with the following attributes: Mergers/Consolidations. Plans with transferred assets due to a merger or acquisition. Discrimination. Plans that have failed the “gateway” test or the ADP (elective […]

403(b) Plans: Required Nondiscrimination Testing

Tuesday, December 5, 2017

One of the benefits of a qualified Section 403(b) retirement plan is that elective deferrals are not subject to nondiscrimination testing. All employer contributions, on the other hand, must demonstrate that contributions do not discriminate in favor of highly compensated employees (HCE). To test for nondiscrimination, contributions or benefits (divided into pay) of the highly […]