IRS

Industry & Regulatory News
IRS Releases 2022 Draft Form 945

The IRS has made available a draft 2022 Form 945 Annual Return of Withheld Federal Income Tax. This form is used to report withheld federal income tax from nonpayroll payments such as distributions from tax-favored retirement plans. The form will be reviewed and additional details provided as warranted.

June 27 2022
IRS
Industry & Regulatory News
IRS Issues Yield Curves and Segment Rates for DB Plan Calculations

The IRS has issued Notice 2022-29, 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 May 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.

June 22 2022
Industry & Regulatory News
IRS Announces Pre-Examination Compliance Pilot

According to an Employee Plans News release, the IRS is piloting a pre-examination retirement plan compliance program beginning in June 2022. Plan sponsors of retirement plans that have been selected for examination would be notified by letter and given a 90-day period to review plan documents and operations to determine if there are compliance issues. Mistakes found that qualify for the Self Correction Program under the Employee Plans Compliance Resolution System can be corrected in that manner. For items that don’t qualify, the plan sponsor can request remediation through a closing agreement with the IRS. The IRS will review documentation and either issue a closing letter or conduct a limited or full scope examination. The goal of the pilot program is to reduce taxpayer burden and reduce time spent on retirement examinations. The duration of the pilot was not specified, but the IRS will evaluate the effectiveness of the program to determine if it will become part of their overall compliance strategy. 

June 03 2022
Industry & Regulatory News
Senate HELP Committee Releases Retirement Bill Discussion Draft

Senators Patty Murray (D-WA) and Richard Burr (R-NC)—chair and ranking members of the Senate Health, Education, Labor and Pensions Committee respectively—have released a discussion draft of compiled retirement provisions from several bills into the Senate’s latest version of what has been coined SECURE Act 2.0. The RISE & SHINE Act shares some similarities to, and builds upon the Securing a Strong Retirement Act bill that passed the House in March.

 

May 27 2022
Industry & Regulatory News
IRS Explains Impact of Missed Deadline for Plan Restatements

In the May 23, 2022, issue of Employee Plans News, the IRS explains the applicability of the Employee Plans Compliance Resolution System (EPCRS) for pre-approved plans that are not restated by appropriate deadlines. Generally, 401(a) and 403(b) plans that fail to timely restate their plans on a pre-approved plan document could correct resulting defects under the EPCRS Self Correction Program if the defect has existed for less than the past three years. Older defects can be pursued by filing a Voluntary Correction Program (VCP) application with the IRS to correct the failure. The IRS indicates that the failure to qualify as a pre-approved plan is not in and of itself a qualification issue. 

May 26 2022
Industry & Regulatory News
IRS Issues Yield Curves and Segment Rates for DB Plan Calculations

The IRS has issued Notice 2022-25, 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 May used under Internal Revenue Code Section (IRC Sec.) 417(e)(3), and the 24-month average segment rates under IRC Sec. 

May 20 2022
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