Industry & Regulatory News

Industry & Regulatory News

ERISA Insights: IRS Releases RMD Regulations

More than two years after releasing proposed regulations that revised the required minimum distribution (RMD) regulations and other related guidance, the Internal Revenue Service (IRS) has released final regulations that revise existing regulations applicable to RMDs, eligible rollover distributions, and excess accumulation tax.

July 19 2024

IRS Issues Yield Curves and Segment Rates for DB Plan Calculations

The Internal Revenue Service has issued Notice 2024-59, which contains updated guidance on factors used in certain defined benefit (DB) pension plan minimum funding and present value calculations. Updates include corporate bond monthly yield curve, the corresponding spot segment rates for June used under Internal Revenue Code Section (IRC Sec.) 417(e)(3), and the 24-month average segment rates for July 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 standard for single-employer DB plans.

 

July 19 2024

DOL Launches Online Filing Option for Abandoned Plans

The Department of Labor has launched an online filing system for termination administrators to be able to submit required information for abandoned plans to DOL in addition to existing email and paper-based methods. This initiative was telegraphed in the recent release of an interim final rule that expands the abandoned plan program to Chapter 7 bankruptcy trustees and makes other changes. More information on the rule can be found here.

July 19 2024

Retirement Plan Disaster Assistance May Be Available for Montana Severe Storm

The Federal Emergency Management Agency (FEMA) issued a Major Disaster Declaration on July 18, 2024, for Montana severe winter storm and flooding, for the incident period of May 6 – May 9, 2024.

July 19 2024

Retirement Plan Disaster Assistance May Be Available for Kansas Severe Storms

The Federal Emergency Management Agency (FEMA) issued a Major Disaster Declaration on July 15, 2024, for Kansas severe storms, straight-line winds, tornadoes and flooding, for the incident period of April 25 – April 30, 2024.

July 16 2024

IRS Provides 2024 Electronic Filing Relief for Form 5330

The IRS notes in a new post that electronic filing of Form 5330, Return of Excise Taxes Related to Employee Benefit Plans, will not be required for the remainder of the 2024 taxable year—confirming that taxpayers may continue to file by paper. Form 5330 is used to report the payment of excise tax for a variety of issues, including prohibited transactions (i.e., late deposits), excess contributions, reversion of qualified plan assets, excess benefits paid, etc.

July 15 2024

House Proposal Would Expand 529 Use

Rep. Kevin Hern, (R-OK), and three Republican co-sponsors have introduced HR 8915, the Education and Workforce Freedom Act.

July 03 2024

Washington Pulse: Interim Final Rule for Abandoned Plans Released

The Department of Labor (DOL) has issued an interim final rule, expanding the Abandoned Plan Program regulations to also include plans of employers who are in liquidation under Chapter 7 of the U.S. Bankruptcy Code. The DOL has also released a corresponding amendment to prohibited transaction exemption (PTE) 2006-06, Class Exemption for Services Provided in Connection with the Termination of Abandoned Individual Account Plans.

July 02 2024

Retirement Plan Disaster Assistance May Be Available for Minnesota Severe Storms

The Federal Emergency Management Agency (FEMA) issued a Major Disaster Declaration on June 28, 2024, for Minnesota severe storms and flooding, for the incident period of June 16, 2024, and continuing.

July 01 2024

IRS Announces Deadline Relief for Mississippi Severe Storms

The IRS has announced the postponement of certain tax-related deadlines for victims of severe storms, straight-line winds, tornadoes, and flooding in Mississippi.

June 28 2024