ERISA News

Industry & Regulatory News
IRS Again Extends Temporary Relief from Physical Presence Requirement for Retirement Plan Consents

The IRS issued Notice 2021-40, extending guidance released under Notice 2020-42 and previously extended by Notice 2021-03, which provided temporary relief from the physical presence requirements for certain elections that are made by participants and beneficiaries in qualified retirement plans and other tax-favored retirement arrangements. The additional extension provides relief through June 30, 2022. This includes signatures of those making an election ordinarily needing to be witnessed in the physical presence of a plan representative or notary public, including spousal consent and certain forms of distribution from retirement plans.

June 24 2021
Industry & Regulatory News
Several Health Savings Bills Proposed

Senator Ben Sasse (R-NE) recently introduced two bills aimed at providing more flexibility for the use of health savings accounts (HSAs). Senate bill 2113 proposes to expand permissible distributions from an employee’s health flexible spending arrangement or health reimbursement arrangement to the employee’s HSA. Senate bill 2099 proposes to make HSAs more broadly available by removing the requirement that individuals be enrolled in a high deductible health plan. Further details of these proposals have not yet been made available.

June 23 2021
Industry & Regulatory News
Supreme Court Leaves Affordable Care Act In Place

On June 17, 2021, the United States Supreme Court held that the plaintiffs did not have standing to pursue an action under the Patient Protection and Affordable Care Act (PPACA) because the individual mandate is unenforceable and, as such, “unenforceable language is insufficient to establish standing.” Regarding the states, the Supreme Court held that the "pocketbook injuries" cannot be traced to the government’s unlawful conduct. The Supreme Court failed to consider whether reducing the penalty to zero rendered the individual mandate unconstitutional and, in turn, if the individual mandate is unconstitutional, whether the individual mandate is severable from the remainder of the PPACA.

June 18 2021
Industry & Regulatory News
IRS Issues Final Regulations for Mandatory Deadline Postponements Related to Federally Declared Disasters

The IRS has released final regulations regarding the mandatory 60-day postponement of deadlines for certain time-sensitive, tax-related acts in circumstances of federally declared disasters, implemented under the Further Consolidated Appropriations Act of 2020.

June 11 2021
Industry & Regulatory News
IRS Issues Deadline Relief for Louisiana Storm Victims

The IRS has issued a news release announcing the postponement of certain tax-related deadlines for Louisiana victims of severe storms and flooding. The tax relief postpones various tax filing and payment deadlines that occurred starting May 17. The areas included in the relief are Ascension, Calcasieu, East Baton Rouge, Iberville, and Lafayette parishes.

June 11 2021
Industry & Regulatory News
Bill Would Double IRA Contribution Limit for Those Without Retirement Plan Access

Senator John Kennedy (R-LA) has introduced the Increasing Retirement Amount Act to allow individuals without access to a workplace retirement plan to save more for retirement by providing an increased IRA contribution limit of $12,000 per year, subject to annual cost of living adjustments. The special rule would also allow catch-up contributions of up to $3,000 per year for those age 50 or older.

June 09 2021
Industry & Regulatory News
SECURE Act Video Series: IRA Amendments

Ascensus is excited to present the SECURE Act Video Series. This multi-video series will provide a snapshot of retirement-related SECURE Act provisions, included in the Further Consolidated Appropriations Act, 2020.

June 03 2021
Industry & Regulatory News
IRS Issues Deadline Relief for West Virginia Storm Victims

The IRS has issued a news release announcing the postponement of certain tax-related deadlines for West Virginia victims of severe storms, straight-line winds, tornadoes and flooding. The tax relief postpones various tax filing and payment deadlines that occurred starting February 27. In addition to extending certain tax filing and tax payment deadlines, the relief includes completion of many time-sensitive, tax-related acts described in IRS Revenue Procedure 2018-58 and Treasury Regulation 301.7508A-1(c)(1), which include filing Form 5500 for retirement plans, completing rollovers, and making retirement plan loan payments.

June 01 2021
Industry & Regulatory News
IRS Issues Revised 2020 Publication 590-B

The IRS has issued a revised 2020 Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs), intended to clarify the application of required minimum distribution (RMD) rules under the Setting Every Community Up for Retirement Enhancement Act (SECURE Act).

May 26 2021
Industry & Regulatory News
Executive Order Includes Review of ESG Factors in Retirement Plans

Last week, President Biden issued an Executive Order on Climate-Related Financial Risk, which includes a directive to the Department of Labor (DOL) Secretary to consider publishing, by September 2021, a proposed rule to suspend, revise, or rescind the Financial Factors in Selecting Plan Investments and Fiduciary Duties Regarding Proxy Voting and Shareholder Rights final rules that were published during the Trump administration regarding environmental, social, and governance (ESG) investments and proxy voting by employee benefit plans.

May 24 2021