IRS

Industry & Regulatory News
Final Form 5500 Revisions Guidance Issued

The Department of Labor’s Employee Benefits Security Administration (EBSA), IRS, and the Pension Benefit Guaranty Corporation (PBGC) have released final forms revisions to the Form 5500 Annual Return/Report of Employee Benefit Plan and Form 5500-SF Short Form Annual Return/Report of Employee Benefit Plan, and related instructions, that apply to plan year reports beginning on or after January 1, 2022. A proposed rule was issued last September.

May 20 2022
Industry & Regulatory News
IRS Announces Applicable Federal Rates for June 2022

The IRS has issued Revenue Ruling 2022-10, which contains the applicable federal rates (AFR) for June 2022. These rates are used for such purposes as calculating distributions from retirement savings arrangements that meet the requirements for substantially equal periodic payments (a 10 percent early distribution penalty tax exception), also referred to as “72(t) payments.”

May 17 2022
IRS
Industry & Regulatory News
IRS Issues Deadline Relief for New Mexico Victims of Wildfires and Straight-Line Winds

The IRS has issued a news release announcing the postponement of certain tax-related deadlines for victims of wildfires and straight-line winds in New Mexico. The tax relief postpones various tax filing deadlines that began April 5, 2022.

May 13 2022
Industry & Regulatory News
IRS Further Extends Temporary Relief from Physical Presence Requirement for Retirement Plan Consents

The IRS today issued Notice 2022-27, extending guidance released previously under Notice 2020-42 and extended by Notice 2021-03 and Notice 2021-40. The Notice provides additional 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.

May 13 2022
Industry & Regulatory News
2023 HSA Limits Released

May 3, 2022 - The IRS has issued Revenue Procedure 2022-24, providing inflation-adjusted amounts for health savings accounts (HSAs) for calendar year 2023. Maximum annual HSA contributions will rise from $3,650 to $3,850 for those with self-only insurance coverage, and from $7,300 to $7,750 for those with family coverage.

Minimum deductible amounts for qualifying high deductible health plans will increase from $1,400 for self-only coverage to $1,500, and from $2,800 to $3,000 for a family plan. Maximum annual out-of-pocket amounts under self-only coverage will rise from $7,050 to $7,500, and from $14,100 to $15,000 for family coverage.

May 03 2022
Industry & Regulatory News
IRS Proposes Update to Mortality Tables Used for DB Plans

May 3, 2022 - The Department of Treasury and Internal Revenue Service have released proposed regulations to update the mortality tables that are used to calculate minimum required contributions for single-employer defined benefit pension plans. The regulations are proposed to be first effective for plan years beginning in 2023.

Comments must be received by June 9, 2022. A public hearing on these proposed regulations has been scheduled for June 28, 2022. The regulations will be reviewed, and additional details provided as warranted.

May 03 2022
Industry & Regulatory News
IRS Releases Revised 2021 Publication 590-B

April 29, 2022 - The IRS has issued a revised 2021 Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs). The updated publication appears to correct several errors in the life expectancy tables found in Appendix B. The 2021 tax year publication reflects new life expectancy and distribution period tables that are applicable to distribution calendar years beginning on or after January 1, 2022.

April 29 2022
Industry & Regulatory News
Washington Pulse: IRS Issues Proposed MEP Rule

Employers of all types have expressed interest in learning more about multiple employer plans (MEPs). But the unified plan rule, sometimes known as the “one bad apple rule,” has discouraged some employers from pursuing MEP participation.

May 02 2022
Industry & Regulatory News
IRS Issues Yield Curves and Segment Rates for DB Plan Calculations

The IRS has issued Notice 2022-16, which contains updated guidance on factors used in certain defined benefit (DB) pension plan minimum funding and present value calculations. Updates include the corporate bond monthly yield curve, the corresponding spot segment rates for April used under Internal Revenue Code Section (IRC Sec.) 417(e)(3), and the 24-month average segment rates under IRC Sec. 430(h)(2). IRC Sec. 417 contains definitions and special rules for minimum survivor annuity requirements in DB plans. IRC Sec. 430 addresses minimum funding standards for single-employer DB plans.

April 19 2022
Industry & Regulatory News
IRS Announces Applicable Federal Rates for May 2022

The IRS has issued Revenue Ruling 2022-9, which contains the applicable federal rates (AFR) for May 2022. These rates are used for such purposes as calculating distributions from retirement savings arrangements that meet the requirements for substantially equal periodic payments (a 10 percent early distribution penalty tax exception), also referred to as “72(t) payments.”

April 19 2022