Blue Ridge ESOP Associates Industry News

SECURE Act 2.0 – Updates for 2024

Topics: Form 5500, DOL, RMD - Required Minimum Distribution

On November 2, 2023, the IRS announced cost of living adjustments affecting qualified retirement plans for 2024.

Topics: ESOP & 401(k) Plans, IRS, DOL

REMINDER - SECURE/CARES Act Amendments

Topics: IRS, DOL, Plan Document, CARES Act

Over the past three months there have been a number of updates provided to the retirement community by both the Department of Labor and the Internal Revenue Service.

Topics: IRS, DOL

On May 27, 2020 the DOL published new safe harbor regulations for plan administrators to electronically deliver required disclosures to retirement plan participants and beneficiaries. This new safe harbor was put into place to take advantage of constant technological changes and to ease administrative challenges and costs. These new regulations do not replace the 2002 safe harbor, they simply provide an alternative method for providing notices using electronic media. Plan administrators have flexibility when selecting which option would work best for their participants and beneficiaries.

Topics: DOL

What is an SPD?

Topics: ERISA, DOL, Terminated Participants, Plan Document

Final Hardship Regulations

Topics: ESOP & 401(k) Plans, IRS, DOL, Distributions

Establishing and maintaining a qualified retirement plan for employees can be expensive. It is important for plan sponsors to understand all the costs involved, if those costs can be classified as plan expenses that can be paid from plan assets, and how to allocate those expenses.

Topics: Plan Design, DOL, esop design

The Summary Annual Report (SAR) is a summary of the IRS Form 5500 that must be distributed to all plan participants. You’ll typically receive a copy of the SAR with your plan Participant Statements. Compliance is mandatory, and penalties for willful noncompliance can include fines in excess of $100,000, imprisonment up to 10 years, or both.

Topics: Form 5500, DOL, Summary Annual Report

IRS Provides Help with Rollovers

If you receive a distribution check and fail to roll over the payment to an IRA or other plan within 60 days, you may be in luck.  The IRS has provided a self-certification procedure for those who inadvertently fail to complete a rollover within 60 days.  Revenue Procedure 2016-47 provides a sample self-certification letter that a taxpayer can use to notify an IRA or other institution that he qualifies for a waiver of the 60-day rollover requirement.  The waiver applies if one or more of 11 circumstances apply, including:

• Check was misplaced and not cashed
• Taxpayer’s home was severely damaged
• A family member died
• Taxpayer or family member was seriously ill
• Taxpayer was in jail
• Postal error

Form 5500

Topics: IRS, Form 5500, DOL, Rollovers