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02Mar

FLASHPOINT: IRS REPRESENTATIVES SAY NO IMMINENT VCP CHANGES

IRS representatives attending the TE/GE Council meetings this week have confirmed that there is no significant action being taken by the IRS at this time to modify the Voluntary Correction Program (VCP) program. On February 25, 2020, the American Retirement Association (ARA) reported in its online newsletters that, according to an IRS whistleblower, the IRS […]
06Nov

FLASHPOINT: IRS ANNOUNCES 2020 COST OF LIVING ADJUSTMENTS TO VARIOUS RETIREMENT PLAN LIMITS (AND SOME COMMENTS ON THE HARDSHIP REGULATIONS)

The IRS just released the cost of living adjustments for various retirement plan limitations that will take effect on January 1, 2020. Many of the limits will be increasing for 2020. The key limits that increased (shown below in bold italics) include the compensation that is taken into account for plan purposes, the salary deferral […]
30Jul

FLASHPOINT: THE DOL FINALIZES MEP REGULATIONS

As discussed in our FlashPoint dated October 25, 2018, available here: https://ferenczylaw.com/flashpoint-the-new-mep-meh-proposed-regulations/, the U.S. Department of Labor (“DOL”) previously introduced proposed regulations relating to certain defined contribution multiple employer plans (“MEPs”). These regulations were issued in final form on July 29, 2019 (the “Regulation”), and offer the ability of “bona fide” organizations, associations, and professional […]
26Jul

FLASHPOINT: IF YOU SPONSOR A MEP: YOU MAY NEED TO ACT BEFORE OCTOBER 15!

The Department of Labor (DOL) issued a Field Assistance Bulletin (FAB 2019-01) on July 24, 2019, relating to Form 5500 filings for Multiple Employer Plans (MEPs). If you sponsor or administer MEPs, it is likely that this FAB applies to you. As it warns of possible compliance issues and grants transitional relief, you need to […]
17Jul

FLASHPOINT: MID-SUMMER UPDATE: MORE ABOUT REG BI AND PREVENTING MEP SPOILAGE FROM THE ONE BAD APPLE

By S. Derrin Watson, Of Counsel More About Reg BI: Identifying, Disclosing, Mitigating, and Eliminating Conflicts of Interest In our earlier Flash, “Regulation Best Interest and More,” we provided an overview of the Securities and Exchange Commission’s (“SEC”) recently finalized Regulation Best Interest (“Reg BI”), which impacts transactions between broker-dealers and retail customers, including retirement […]
11Jun

FLASHPOINT: REGULATION BEST INTEREST AND MORE … A PRESENT TO INVESTORS FROM THE SEC

By S. Derrin Watson, Of Counsel The Securities and Exchange Commission (SEC) has published a package of rules and interpretations (“SEC Rule”) dealing with the duties broker-dealers and investment advisors owe to their customers, including individual plan participants. The SEC originally proposed the package in April 2018, weeks after the 5th Circuit Court of Appeals […]
03May

FLASHPOINT: IRS DETERMINATION LETTER PROGRAM EXPANDED … TO A LIMITED EXTENT

The IRS has expanded the availability of determination letters on individually designed plans in two circumstances: temporarily for “statutory hybrid plans” and permanently for merged plans. The availability of IRS approval of plan documents should give sponsors in these situations an opportunity to be reassured that their plan documents are “up to snuff.” The Determination […]
23Apr

FLASHPOINT: CORRECTIONS MADE EASIER: THE IRS EXPANDS THE SELF-CORRECTION PROGRAM

Last year, the IRS modified its correction programs for qualification failures (the “Employee Plans Compliance Resolution System” or “EPCRS”) to significantly increase the fees for taking part in the Voluntary Compliance Program (“VCP”). (See our previous FlashPoint on this subject.) Since that occurred, the retirement plan community has responded with demands that the IRS expand its […]
04Apr

FLASHPOINT: THINGS ARE HAPPENING … FINALLY!

After a period of national quiet in relation to retirement plans, several things have occurred recently that are worth discussing. Sorry that this is a longer newsletter than we like, but we wanted to give you quick feedback on what’s finally going on. California’s State-Mandated Retirement Program Survives Preemption Challenge One of the interesting trends […]
11Dec

FLASHPOINT: THE INS AND OUTS OF 403(B) DEFERRALS – THE IRS SOLVES THE PROBLEM

The IRS has provided important transition relief for many 403(b) plans struggling with an apparent change in IRS positions on a critical issue: how should 403(b) plans treat part-time employees who sometimes work more than 20 hours a week and sometimes work fewer? Recently issued Notice 2018-95 clarifies that what the IRS is calling “the […]