Industry & Regulatory News

Industry & Regulatory News

IRS Announces Issuance Opinion Letters and Restatement Deadline for Pre-Approved Defined Benefit Plans

The IRS has released Announcement 2023-6, stating that it expects to issue opinion letters for pre-approved defined benefit plans that were filed with the IRS during the third remedial amendment cycle “on February 28, 2023, or, in some cases, as soon as possible thereafter.”

February 08 2023

Industry & Regulatory News

Hardship Distributions May Be Permitted for North Dakota Severe Winter Storms

The Federal Emergency Management Agency (FEMA) issued a disaster declaration on February 5, 2023, for severe winter storms, snowstorms, and straight-line winds in North Dakota, for the incident period of November 9, 2022 – November 11, 2022.

February 07 2023
IRS

Industry & Regulatory News

Defined Benefit/Cash Balance Plan Key Priorities

Defined Benefit/Cash Balance Plan Key Priorities.

Please note: These provisions may be prioritized differently based on your individual business needs. 

February 02 2023

Industry & Regulatory News

Defined Contribution Plan Key Priorities

Defined Contribution Plan Key Priorities. 

Please note: These provisions may be prioritized differently based on your individual business needs. 

February 02 2023

Industry & Regulatory News

IRA/SEP/SIMPLE Key Priorities

IRA/SEP/SIMPLE Key Priorities. 

Please note: These provisions may be prioritized differently based on your individual business needs. 

February 02 2023

Industry & Regulatory News

Federal Prime Interest Rate Increased to 7.75 Percent

Effective February 1, 2022, the federal prime interest rate increased from 7.50 percent to 7.75 percent. The prime interest rate is largely determined by the federal funds rate, as set by the Federal Reserve’s Federal Open Market Committee (FOMC).

February 02 2023

Industry & Regulatory News

Form 5500 Guidance Under SECURE Act Has Left the OMB

A final rule from the Department of Labor titled “Implement SECURE Act and Related Revisions to Employee Benefit Plan Annual Reporting on the Form 5500” has left the Office of Management and Budget.
 
According to a description of the rule, it is likely to include guidance on the implementation of Group of Plans reporting pursuant to Section 202 of the SECURE Act. The Department of Labor released certain form revisions last year but indicated that it was evaluating public comments on elements of the September 2021 proposal related to 1) Defined Contribution Group reporting under the SECURE Act and related audit issues, 2) new Schedule MEP (Multiple-Employer Retirement Plan Information)  reporting requirements, 3) financial improvements to the Schedule H, 4) changes in participant counts related to plan audit requirements, 5) reporting for multiple employer welfare arrangements that file Form M-1, and 6) questions on pension plan compliance.

February 01 2023

Industry & Regulatory News

COVID-19 National Emergency Expected to End May 11

Earlier this week, President Biden announced his intent to extend the national emergency concerning the COVID-19 pandemic through May 11, 2023. President Trump initially declared a national emergency at the beginning of the COVID-19 outbreak in March 2020. Shortly after President Biden took office, the national emergency was extended for one year through February 28, 2022. President Biden extended the national emergency for a second time on February 18, 2022, until February 28, 2023.

Beginning March 1, 2020, the national emergency declaration has provided relief to health and welfare plans by extending the following deadlines:

  • HIPAA special enrollment periods
  • 60-day election period for COBRA continuation coverage
  • Date for making COBRA continuation coverage premium payments
  • Date for individuals to notify a health plan of a qualifying event or determination of disability
  • Date that individuals can make a claim for benefits under the plan's claims procedures (extending the runout period for reimbursement by health plans, health FSAs, or HRA plans until after the pandemic has subsided)
  • Date for individuals to perfect an incomplete claim
  • Dates for appealing denied benefits and for external review of claims denials
  • Date that a group health plan sponsor or administrator must provide a COBRA election notice

As clarified in Notice 2021-01, the Department of Labor, the Internal Revenue Service, and the Department of Treasury explained the extension of deadlines applies on a person-by person basis and cannot exceed one year, as follows:

  • one year from the date an individual was first eligible for relief, or
  • 60 days after the announced end of the national emergency

 If the national emergency ends on May 11, 2023, as planned, the extension of deadlines would end on July 10, 2023. Normal deadlines for the events listed above will apply as of that date. President Biden has indicated that he intends to end both the public health emergency and the national emergency on May 11, 2023.

February 01 2023

Industry & Regulatory News

Bill Introduced to Expand 529 Plan Eligible Expenses

Senator Ted Cruz (R-TX) has reintroduced the Student Empowerment Act. The bill would allow public, private, and religious school students to use 529 savings accounts to cover K-12 expenses—including expenses related to tutoring, testing fees, and educational therapies for students with disabilities.

January 31 2023

Industry & Regulatory News

Employer Tax Credits

This credit applies to qualified plans (defined contribution and defined benefit plans under IRC Sec. 401(a) and 403(a)), and SEP and SIMPLE plans.

January 30 2023