Church Treasurer Posted May 9, 2018 Posted May 9, 2018 An employee is stating the recent legislation (Bipartison Budget Act of 2018) allows the participant to request a hardship for elementary and high school education expenses. Am I correct that we are still waiting for IRS guidance on the Bipartison Budget Act of 2018, it's not effective until 2019, and plan amendments would need to be put in place to make the applicable changes?
ETA Consulting LLC Posted May 9, 2018 Posted May 9, 2018 Correct. The document providers are usually very responsive to legislative changes. When it comes to hardships, the plan isn't even required to allow them. So, until the plan is amended, I'd continue to follow the current written terms. Good Luck! CPC, QPA, QKA, TGPC, ERPA
Patricia Neal Jensen Posted May 10, 2018 Posted May 10, 2018 Correct on all points. It is not effective yet and plans will have to be amended to incorporate the new rule when it is. (I am not looking forward to the latter!) And, finally, as has been pointed out by ETA ...LLC, the plan document prevails! Patricia Neal Jensen, JD Vice President and Nonprofit Practice Leader |Future Plan, an Ascensus Company 21031 Ventura Blvd., 12th Floor Woodland Hills, CA 91364 E patricia.jensen@futureplan.com P 949-325-6727
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