IRS Announces Cost of Living Adjustments for 2019

Friday, December 7, 2018

The IRS has announced cost of living adjustments (COLA) applicable to qualified plans for 2019. The limit on elective deferrals to 401(k), 403(b), and 457(b) plans will increase from $18,500 to $19,000. 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 $55,000 […]

DOL Fast Tracks Regulations on Multiple Employer Plans

Friday, December 7, 2018

On August 31 of this year, President Trump signed an executive order to “strengthen retirement security.” Included in the order was a directive for the IRS to review the rules governing Multiple Employer Plans (MEPs), improving and lowering the cost of retirement plan disclosures, and updating the life expectancy tables for required minimum distributions. In […]

California Ruling Affects Independent Contractor Status

Friday, December 7, 2018

Earlier this year, the California Supreme Court issued a ruling that redefines the rules for determining independent contractors. The ruling rejected the old multi-factor standard and establishes an “ABC test” for determining independent contractor status, as follows: A. The worker is free (contractually and in fact) from the control and direction of the hirer in […]

Compliance Spotlight: New Rollover Notice and Disaster Relief

Friday, December 7, 2018

Updated language for required participant distribution notices has been issued by the IRS. Participants who meet the plan requirements to receive an eligible rollover distribution are required to receive a notice describing the rollover options and the tax consequences of receiving a taxable distribution. The IRS, in Notice 2018-74, updated the model notices for the […]

Private Letter Ruling Makes Headlines Regarding Student Loan Payments

Friday, December 7, 2018

In a Private Letter Ruling (PLR) earlier this year, the IRS allowed a company (subsequently self-identified as Abbott Labs) to make non-elective contributions to their plan based on student loan repayments. The ruling was reported by Forbes magazine and gained national attention this summer. The IRS issues PLRs to address specific requests from taxpayers and […]