Headlines about "Ret plans - audits by gov't agencies"
Gathered from the web by the editors at BenefitsLink.com.
IRS Page on Correcting Plan Errors: VCP Submission Kits for Pre-Approved Plans
"[The page provides links to [1] Pre-approved defined benefit plans -- sponsors who missed the April 30, 2012, EGTRRA plan adoption deadline; [2] Pre-approved 401(k) profit sharing and other defined contribution plans -- sponsors who missed the April 30, 2010 EGTRRA plan adoption deadline[.]" (Internal Revenue Service)
[Official Guidance] Did Your DB Plan Miss the April 30, 2012 EGTRRA Amendment Deadline? IRS Web Site Describes Correction Needed
"Generally, if you have a pre-approved defined benefit pension plan document and you did not sign an EGTRRA plan document by April 30, 2012, your plan does not comply with the tax laws and may be ineligible for tax benefits.... When completing Schedule 2, Part 1 [in the IRS Voluntary Correction Program Submission Kit], go to the �Other� box at the end of the list of law names. Check this box and type in the following failure description: The changes required by the 2006 Cumulative List (Notice 2007-3, 2007-1 C.B. 255) for an employer using a pre-approved defined benefit plan who failed to adopt the pre-approved plan by 4/30/2012, as required by Announcement 2010-20[.]" (Internal Revenue Service)
DOL Ramps Up 401(k) Plan Provider Examinations
"Over the last 12 months, [DOL] has quietly ratcheted up its examinations of firms that serve retirement plans, including brokerage firms, registered investment advisers and third-party administrators, said attorneys representing these firms. [DOL] is examining how these companies get paid and whether their compensation poses a conflict of interest, they said. A Labor Department spokesman confirmed the examinations and said the effort is part of bigger push by the agency to examine all areas of employee benefits, including health and welfare plans." (The Economic Times)
[Official Guidance] Using the IRS' Voluntary Correction Program to Correct Errors Discovered During a Determination Letter Application
"[Question:] Can I reserve the right to use VCP to correct errors found during the determination letter application process by including a disclaimer in the application, stating, for example, that 'I elect to be treated under the VCP program if the IRS finds an error?' [Answer:] No.... [that] statement wouldn�t be acceptable because it�s too broad and fails to describe a specific error." (Internal Revenue Service)
Advisers Recommend Review of Non-Profit Employers' 403(b) Programs Before IRS Auditor Comes to Call
"The 2009 tax year is the first year that ... new regulations for documentation are truly in effect. And, of course, there's no guarantee that your plan will be audited. The plain fact of the matter is that the IRS gave plan sponsors more than sufficient time to bring their plans into compliance. And the simple truth is that it's the plan sponsor's responsibility to be in compliance, not the IRS's to enforce it." (The NonProfit Times)
Before Making that 2011 IRA Contribution, Make Sure Your Pension Plan Assets Are Safe
"If you do put money in a pension plan, whether self-directed through a custodial agent or via an employer-sponsored plan, make sure you know exactly where your money is going - and who's really managing it once it gets there." (Money Morning)
IRS Handout for Upcoming Phone Forum on the EP Determination Letter Program Update, March 30, 2012 (PDF)
"Important changes to the Employee Plans determination letter program will be discussed by [the] Area Manager IRS Employee Plans determinations, along with [an IRS staff member]." (Internal Revenue Service)
Using the IRS Interim 403(b) Document Audit Relief
"If an employer is found not to have adopted formal 403(b) plan document in a timely manner, the IRS may choose (presumably under non-abusive circumstances) to enter into a type of agreement where sanctions more resembling those available under the 'Voluntary Corrections Program' (VCP) will apply, rather than those under the more expensive 'Closing Agreement Program' (CAP). This should help encourage employers who still not have adopted a formal program to act as quickly as possible to adopt a formal written plan document, albiet late." (Business of Benefits)
Is the Recession Causing Small Retirement Plans to Skimp on Compliance Efforts?
"Have difficult economic times caused small retirement plans to cut back on compliance with the tax laws? According to the March 20 issue of the IRS electronic newsletter, Employee Plans News, 1 in 4 smaller retirement plans reviewed starting in 2007 under the IRS's LESE ('Learn, Educate, Self-Correct, and Enforce') project had engaged in at least one prohibited transaction." (Bloomberg BNA)
[Official Guidance] IRS Employee Plans News, March 20, 2012 (PDF)
The newsletter includes material on the following: New guidance to encourage retirement plans to offer participants lifetime income options; Submission of recommendations for next year's guidance plan; EP Published Guidance; Adoption of pre-approved defined benefit plans and filing determination letter applications; Checking the status of your determination letter application on IRS Web page, by phone or fax; New (Cycle A) Alert Guidelines to help review plans; EP Determination Letter Program Update phone forum scheduled for March 30. (Internal Revenue Service)
[Guidance Overview] IRS's Minor Changes to the Determination Letter Process for 2012 (PDF)
"Defined benefit plans that use volume submitter documents must typically make modifications to accommodate special provisions. As a result, they are rarely able to use Form 5307 to request determination letters. Therefore, the changes to the basic Form 5300 and Form 5307 filing rules should have little impact on these plans. Sponsors of defined contribution plans that use prototype or volume submitter documents should review the revised basic Form 5300 and 5307 filing rules to determine if their plans are affected." (Prudential)
GAO Report on Private Pensions: Better Agency Coordination Could Help Small Employers Address Challenges to Plan Sponsorship
"GAO recommends that Labor convene an interagency task force with Treasury, IRS, and SBA to coordinate existing research, education, and outreach efforts to foster small employer plan sponsorship. GAO also recommends that IRS consider modifying tax forms to gather complete, reliable information about SEP IRAs." (Government Accountability Office)
[Guidance Overview] Revised IRS Procedures for Determination Letters
"[T]he IRS hopes that these changes will both reduce the number of determination letter applications it receives and simplify its review of the applications it does receive. However, it remains to be seen whether employers that have historically sought and obtained their own individual determination letters will be content to rely on the opinion letter issued to the sponsor of the preapproved plan, or whether they will opt for a volume submitter plan (in lieu of a prototype plan), in order that they can modify the document just enough that it will qualify for filing on Form 5307. Care would need to be taken in those situations to make sure that the changes are not so significant as to cause the plan to be treated as an individually designed plan, since those plans require the more expensive Form 5300 filing, and must be filed during the appropriate 12-month period to be considered an 'on-cycle' filing." (Spencer Fane)
IRS Phone Forum Handout for 401(k) Questionnaire Interim Report Presentation on March 6, 2012 (PDF)
The 401(k) Questionnaire Interim Report, its next steps, and current issues found in 401(k) audits will be discussed during the phone forum. (U.S. Internal Revenue Service)
[Guidance Overview] New Determination Letter Guidelines for Qualified Retirement Plans
"Plan sponsors may be impacted in different ways by these changes. Some may welcome the simplification; others will want to reassess how their plans are designed and operated. Clearly, though, what for decades has been routine now warrants careful consideration." (Fox Rothschild LLP)
Avoiding a DOL Audit of an Employee Benefit Plan Annual Report
"Plan administrators are well advised to review their selection of auditors and the annual opinions that accompany the audit opinion. Their diligence will be rewarded by avoiding costly DOL audits. Those administrators who receive a notice from the OCA should react quickly and address the issues raised in the notice immediately. The assistance of experienced benefits counsel is essential in satisfactorily resolving these issues." (Fox Rothschild LLP)
Recent DOL Initiatives: Questions Answered
"Last month, advisory board member Sherwin Kaplan and his colleague at Nixon Peabody, Eric Paley, conducted a webinar titled 'Managing and Protecting Your Employee Benefit Plans: New [DOL] Initiatives.' As part of that webinar, [they] took questions from the audience, but they were unable to get to every question in the time allocated[.] Sherwin ... agreed to answer outstanding questions[.] The following are questions submitted during the webinar, with Sherwin's answers.]" (Bloomberg BNA)
IRS Free Phone Forum on EP Determination Letter Program Update Scheduled for March 30, 2012
"Important changes to the Employee Plans determination letter will be discussed by [the] Area Manager in the IRS Employee Plans determination letter program. Attendees are encouraged to submit questions in advance to ep.phoneforum@irs.gov on or before March 16, 2012." (U.S. Internal Revenue Service)
Ensure your Plan Participants are Prepared for a Secure Retirement
Defined Contribution Conference, March 11-13, in Miami. Learn from your peers through presentations and discussions on plan design, communications, investment options and more. FREE registration for qualified plan sponsors. (Pensions & Investments)
Avoid the Common Mistakes Affecting Plan Loans Webcast
Earn CE credit while ERISA expert, Charles Lockwood, JD, LLM, explains the administrative issues that affect plan loans. Have questions? Charles will address them either during or after the webcast. March 22nd at 2pm EST. (ASC)
Handout for IRS 401(k) Questionnaire Interim Report Presentation for March 6, 2012, Phone Forum (PDF)
"The 401(k) Questionnaire Interim Report, its next steps, and current issues found in 401(k) audits will be discussed by [the Director of Employee Plans Examinations] along with IRS staff members[.]" (U.S. Internal Revenue Service)
[Guidance Overview] The Determination Letter Application Process (PDF)
"The importance of submitting a clean, vetted plan and properly completed application to the IRS cannot be overstated. Otherwise, the process that is intended to secure approval of the plan to obtain the plan's unparalleled tax benefits can backfire and threaten plan qualification. This in turn can cloud a bright and sunny day into a long protracted Wisconsin winter." (ERISA Newsletter)
[Official Guidance] Transcript of Phone Forum On Self Correction Program and Closing Agreement Program, November 30, 2011 (PDF)
The phone forum covered current EPCRS issues, procedures and CAP sanctions. (U.S. Internal Revenue Service)
[Official Guidance] IRS Retirement News for Employers, Winter 2012 Edition, February 13, 2012 (PDF)
The Winter edition includes: Plan Issues: 401(k) Questionnaire Interim Report ? comments and highlights; Use an employee's entire calendar-year compensation for determining employer contributions to SIMPLE IRA plans; April 30 deadline for employers to adopt and submit determination letter applications for pre-approved defined benefit plans; Plan Loans: What's a reasonable interest rate for participant loans? Before you take a loan from your retirement plan, there are a few rules you need to know; and, Forms: Tips for Form 5558 requests for extension to file Form 5500-series returns; Using old forms may cause errors and could result in processing delays. (U.S. Internal Revenue Service)
[Guidance Overview] IRS Tips on Requesting Copies of Original or Corrected Determination Letters
"Copies of an original or corrected determination letter must be requested in writing by mail or fax. The IRS does not accept telephone or email requests at this time. The IRS asks that requestors not submit a copy of the original EP determination letter application with the request." (Wolters Kluwer Law & Business / CCH)
[Guidance Overview] IRS Begins Auditing 403(b) Plans and Provides Interim Procedure for Correcting Plan Document Failures
"We recommend, as we have previously, that a 403(b) plan sponsor that discovers a problem with their plan document or who has not yet adopted a plan document correct the failure immediately and not wait for IRS' update of the EPCRS program as IRS will consider 'good faith' efforts to comply in determining whether to assess penalties during an audit and in negotiating a correction under EPCRS once that program is open." (EisnerAmper)
[Guidance Overview] User Fees for Employee Plan Determination Letters Stable in 2012
"The IRS has updated its user fee schedule, generally effective February 1, 2012, for requests for various types of employee plan letter rulings and determination letters, and other matters . . . ." (Wolters Kluwer Law & Business / CCH)
[Guidance Overview] Numerous Changes Have Been Made to and by Determination Letter Procedures
"The revised procedures are effective February 1, 2012 for plans under the five-year remedial amendment cycle (other than terminating plans), and May 1, 2012 for terminating plans and for plans under the six-year remedial amendment cycle." (Wolters Kluwer Law & Business / CCH)
[Opinion] NTSAA and ASPPA Letter on the Inclusion of 403(b) Plans in the Prototype Program
"On January 23, 2012, NTSAA and ASPPA submitted comments to [IRS] in support of the inclusion of 403(b) plans in the prototype program for pre-approved plan documents. IRS officials have recently indicated that budget concerns may result in a reexamination of whether to include 403(b) plan documents in the pre-approved plan program. NTSAA and ASPPA believe that a prototype program for 403(b) plans is essential for the proper administration of the tax laws and that it would be a mistake to abandon this integral component of 403(b) compliance." (American Society of Pension Professionals & Actuaries/National Tax Sheltered Accounts Association)
[Guidance Overview] The IRS Updated Filing Process for Qualified Plans (PDF)
"The new year begins with a new round of IRS filing deadlines along with new procedures and guidance that must be followed in order for the IRS to make a determination that qualified plan documents comply, as to form, with the requirements of the Code. This article reviews a number of pieces of recent IRS guidance affecting the filing process for qualified plans." (Groom Law Group)
[Guidance Overview] Changes and Clarifications to the Determination Letter Program
"These changes, which are effective Feb. 1, 2012 (May 1, 2012, for terminating and pre-approved plans), are designed, among other things, to eliminate features of the program that the IRS believes will improve efficiency by reducing the processing time for determination letter applications." (Drinker Biddle & Reath LLP)
[Guidance Overview] IRS Reduces Program for Requesting Tax Status Determination Letters
"Revenue Procedure 2012‑6 significantly reduces the scope of the determination letter program in several ways. These changes particularly affect sponsors of pre-approved master and prototype (M&P) or volume submitter plans. Sponsors of such plans may still generally rely on 'opinion' or 'advisory' letters . . ., however, the IRS has largely eliminated the option of applying for an individual, supplemental determination letter on the abbreviated Form 5307." (Littler Mendelson P.C.)
Preparing for Your First 401k Plan Audit (PDF)
"Whether your company needs a plan audit today or in future, this white paper is a roadmap of what to consider, what to expect and how to be ready for an upcoming plan audit." (Mohler, Nixon & Williams Accountancy Corporation)
[Guidance Overview] New Procedures for Filing Determination Letter Applications
"Several important changes will take effect in the determination letter program beginning in 2012. The IRS has stated that these changes are intended to (1) reduce the burden on employers for filing determination letter applications (and in some cases, eliminate the need to file an application) and (2) reduce the time it takes for the IRS to process determination letter applications." (Porter Wright Morris & Arthur LLP)
[Guidance Overview] Three Tips for Cycle A Determination Letter Filers
"Use the old Form 5300. . . . Make sure plan amendments are signed and dated. . . . If you detect a serious document problem, commence correction before you file." (Verrill Dana, LLP)
[Guidance Overview] IRS Announcements Provide Desired Extension and Significant Changes to Determination Letter Program
"Many practitioners have recommended to their clients that they always obtain a determination letter. That will no longer be possible for prototypes. Does this mean that employers will be switched to volume submitter plans and minor language changes made for the sole purpose of getting a letter? What impact will this have on examinations?" (McKay Hochman Co., Inc.)
[Guidance Overview] IRS 2011 Cumulative List Contains Requirements for Cycle B Individually Designed Defined Contribution and Defined Benefit Plans
"The Cycle B plans are to be submitted to the IRS for determination letter approval between February 1, 2012 and January 31, 2013." (McKay Hochman Co., Inc.)
[Guidance Overview] IRS Determination Letter Program Will Change in 2012
"Effective May 1, 2012, two more circumstances will apply to require a Form 5300 be used: Aggregation of Plans -- Where the employer has added language to an M&P plan to satisfy the Code ? 415 annual limit and ? 416 top heavy requirements because of the required aggregation of plans. Pre-Age 62 Normal Retirement Age -- Where a pre-approved pension plan has defined normal retirement age to be earlier than age 62." (Deloitte via BenefitsLink.com)
[Guidance Overview] IRS Announces Changes to Determination Letter Program for 2012
"These changes are expected to reduce the time it takes the IRS to process determination letter applications, which will be a plus for both the IRS and plan sponsors. But they also appear to eliminate any opportunity in the determination letter process to present discrimination testing methods for review, discussion, and implicit approval." (Thomson Reuters/EBIA)
[Guidance Overview] IRS Announcement 2011-82 Outlines Changes to Employee Plans Determination Letter Program
"The changes eliminate elective demonstrations regarding coverage and nondiscrimination requirements and provide that only employers who have made limited changes to their pre-approved volume submitter (VS) plans may file Form 5307." (Practical Law Company)
IRS Employee Plans News, December 20, 2011 (PDF)
This edition addresses: Examination Issues; Determination Letter Program;Form 5500; a list of Updated Products and Publications; and, Preparer Tax Identification Number News. (U.S. Internal Revenue Service)
[Guidance Overview] New Determination Letter Procedures
"The IRS provides a chart at their website detailing the effective date of the changes and the specifics for specific line numbers of existing forms." (Wolters Kluwer Law & Business / ftwilliam.com)
IRS Determination Letters Will No Longer Consider Coverage, Nondiscrimination Testing
"The changes take effect with Cycle B, for submissions made on or after Feb. 1, 2012, with a later effective date for terminating plans. Similar changes apply to individual determination letter requests for preapproved plans, effective May 1, 2012. The changes eliminate a plan sponsor's ability to obtain IRS review of nondiscrimination testing issues." (Mercer LLC)
[Official Guidance] IRS Employee Plans News, December 16, 2011 (PDF)
Articles include: Significant changes to the Employee Plans Determination Letter Program - Announcement 2011-82; Relief for IRA owners who have certain agreements with their brokers or financial institutions - Announcement 2011-81; 2011 Cumulative List of Changes in Plan Qualification Requirements - Notice 2011-97. (U.S. Internal Revenue Service)
[Guidance Overview] Required 2011 Qualified Retirement Plan Amendments and Cycle A Determination Letter Filing Deadline
"Discussed [in this article] are summaries of the amendments that individually designed plans may be required to adopt in 2011 as well as the plan document considerations for plans that are scheduled to apply for an IRS determination letter under Cycle A." (Practical Law Company)
[Guidance Overview] Cycle A Filers May Use Prior Version of Form 5300, IRS Advises
"The IRS has reminded employers that the second remedial amendment cycle submission period for individually designed plans in Cycle A began on February 1, 2011 and ends on January 31, 2012." (Wolters Kluwer Law & Business / CCH)
Diligent Plan Sponsors Would Want to Be Prepared for an Audit
"A DOL 401(k) audit can be triggered by an employee complaint or even information you have submitted in your retirement plan's annual Form 5500 filing. Of course, it can be totally random as well. So what should you have available for inspection if the audit requests comes along?" (Fox Rothschild LLP)
What to Expect When Your Retirement Plan is Audited
"During a live webcast, members of the team at Cilfon Gunderson LLP explained what to expect and prepare for when receiving a plan audit notice. Following these easy tips, you can work to avoid an audit, but if you do have to go through the auditing process, it doesn't need to be a stressful experience, especially if you are well prepared." (PLANSPONSOR.COM)
IRS Employee Plans Office Facing Challenges to Improve Processing of ESOP Applications, IRS Official Says
"ESOP processing has faced a number of obstacles over the years. Initially, work on ESOPs was considered 'nonspecialized' and was assigned as general process work. In 2001, two developments triggered the need to develop a cadre of ESOP specialists: the detection of widespread abuses involving ESOPs, and the enactment of new requirements in Code Sec. 409(p)." (Wolters Kluwer Law & Business / CCH)
Employers Must Understand the Status of Their Retirement Plan Documents
"Whether or not an employer should obtain an individual determination letter should be carefully considered based on the size of the employer, number of participants in a plan, the length of time the plan has been in existence, intentions to sell a company, possible plan mergers and past administrative practices." (Employee Benefit News)
IRS's EP Function Should Continue Efforts to Gather Needed Retirement Plan Information
"The Treasury Inspector General for Tax Administration . . . has found that certain information that is no longer required to be reported on annual returns processed by the Labor Department and provided to the IRS was used by the IRS's Employee Plans (EP) function to identify the characteristics of noncompliant plans for examination." (Wolters Kluwer Law & Business / CCH)
[Guidance Overview] FOIA Request to IRS for Information on Pension Plan's Participation in Voluntary Compliance Program Denied
"Retired employees who were participants in a pension plan submitted an FOIA request to the IRS, seeking copies of all the documents associated with the IRS' handling of their former employer's submission under the VCRP concerning pension payments that resulted in an IRS Compliance Statement. The requested documents included the full submission made by the employer and the pension plan administrators . . . ." (Wolters Kluwer Law & Business / CCH)
[Guidance Overview] FOIA Request to IRS for Information on Pension Plan's Participation in Voluntary Compliance Program Denied
"[T]he information requested was exempt from disclosure under Code Sec. 6103, according to the U.S. Court of Appeals in Denver . . . ." (Wolters Kluwer Law & Business / CCH)
Partial Plan Termination Determination
"The IRS is actively pursuing employers whose retirement plans may have experienced a partial termination event. It is important to note that the partial termination rules apply to both defined contribution and defined benefit plans." (Warner Norcross & Judd LLP)
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