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<< Older News  |  December 4, 2020

News

All News > Retirement Plan Amendments

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Restatement Period Opens for Pre-Approved Plans
Blue Ridge ESOP Associates Link to more items from this source
Nov. 25, 2020

"Some of the new provisions in the Cycle 3 documents will include: [1] Windsor decision (new definitions of marriage and spouse); [2] Reduction of safe-harbor contributions; [3] Using forfeitures to pay for safe harbor contributions; [4] In-plan Roth conversion.... [W]ith the new Cycle 3 documents, a company that sponsors an ESOP may be able to use a pre-approved document for the first time."

Tags: ESOPs  •  Retirement Plan Amendments

IRS Notice 2020-83 Provides 2020 Required Amendments List
Thomson Reuters Practical Law Link to more items from this source
[Guidance Overview]
Nov. 24, 2020

"The Required Amendments List does not include: [1] Statutory changes in requirements for which the Treasury Department and the IRS expect to issue guidance. [2] Changes in requirements that permit (but do not require) optional plan provisions. [3] Changes in the tax laws affecting qualified plans or 403(b) plans that do not change the requirements under Code Section 401(a) or Code Section 403(b)."

Tags: Retirement Plan Amendments

Year-End Compliance Update for Retirement Plans
Society for Human Resource Management [SHRM]; membership may be required to view article Link to more items from this source
Nov. 24, 2020

"[1] Year-end deadlines ... [2] IRS guidance on birth/adoption withdrawals ... [3] Part-time employee eligibility changes for 401(k) plans ... [4] Pooled Employer Plans ... [5] Coronavirus-related withdrawals ... [6] Coronavirus-related loans from qualified plans ... [7] Waiver of required minimum distributions for 2020 ... [8] Partial plan terminations ... [9] Restatement window for pre-approved defined contribution plans ... [10] Electronic disclosures ... [11] Electronic signatures ... [12] Remote witness of spousal consents."

Tags: CARES Act  •  Coronavirus (COVID-19)  •  Retirement Plan Administration  •  Retirement Plan Amendments

Text of IRS Notice 2020-83: 2020 Required Amendments List for Qualified Retirement Plans and § 403(b) Retirement Plans (PDF)
Internal Revenue Service [IRS] Link to more items from this source
[Official Guidance]
Nov. 20, 2020

"The Required Amendments List applies to both individually designed plans qualified under Section 401(a) and individually designed plans that satisfy the requirements of Section 403(b).... Part A. Changes in requirements that generally would require an amendment to most plans or to most plans of the type affected by the change. None ... Part B. Other changes in requirements that may require an amendment. [1] Difficulty of care payments treated as compensation for retirement contribution limitations (SECURE Act section 116).... [2] Application of cooperative and small employer charity pension plans."

Tags: 403(b) Plans and Annuities  •  Retirement Plan Amendments

Restatement Period Opens for Pre-Approved Defined Contribution Plans (PDF)
Boutwell Fay LLP Link to more items from this source
[Guidance Overview]
Nov. 9, 2020

"Plans sponsors should: [1] Take some time to review their current plan and consider any beneficial plan design changes that can be implemented during this process. [2] Be aware of changes to pre-approved plan documents that could affect administration ... [3] Carefully review all documents, including the new draft SPD ... [4] Communicate clearly with the document vendor regarding changes. [5] Be mindful of, and responsive to, deadlines set by the document vendor. [6] Have legal counsel review the documents prior to finalization."

Tags: Retirement Plan Amendments

Few Retirement Plans Need Year-End Amendments
Mercer Link to more items from this source
Oct. 27, 2020

"Most retirement plan sponsors won't face year-end amendment deadlines in 2020, but a few may need to adopt amendments to reflect changes in law or plan design. This GRIST summarizes the amendments that may be required by year-end for qualified defined contribution (DC) and defined benefit (DB) plans, 403(b) plans, and one amendment for some nonqualified deferred compensation (NQDC) plans."

Tags: Retirement Plan Amendments

Puerto Rico-Qualified Retirement Plans: 2020 Year-End Amendments Deadline Coming Soon
Ogletree Deakins Link to more items from this source
[Guidance Overview]
Oct. 6, 2020

"[If] during 2020, a Puerto Rico-qualified plan allowed participants to receive in-service hardship withdrawals on account of either the COVID-19 pandemic or the earthquakes that affected the island at the beginning of the year (collectively, 'disaster-relief distributions' or 'DRDs'), the official plan document must be amended accordingly by December 31, 2020."

Tags: CARES Act  •  Coronavirus (COVID-19)  •  Local Regulation  •  Retirement Plan Amendments

Pre-Approved ESOP Plan Documents Make Your Life Easier
Employee Benefits Law Group Link to more items from this source
Sept. 24, 2020

"Historically, ESOPs were custom written documents produced by lawyers, which had to be submitted to the [IRS] for approval. These documents could be costly to amend and maintain. With the arrival this summer of IRS pre-approved 'checklist driven' ESOP documents (similar to 401(k) plans), it is no longer necessary for individual employers to submit these plans to the IRS for approval. As an added bit of flexibility, the due date to decide whether to adopt an ESOP is extended, giving more flexibility for tax deductions."

Tags: ESOPs  •  Retirement Plan Amendments

IRS Issues Guidance on Qualified Birth or Adoption Distributions
The Wagner Law Group Link to more items from this source
[Guidance Overview]
Sept. 11, 2020

"An eligible plan is not required to permit QBOADs. If it does, the plan must be amended by the last day of the 2022 plan year; if QBOADs are added after 2022, the plan must be amended by the last day of the plan year in which the QBOAD is implemented.... Notice 2020-68 [does not address] whether a plan sponsor can limit QBOADs to expenses related to the birth or adoption, and whether it can impose a lesser dollar limit than $5,000."

Tags: Retirement Plan Administration  •  Retirement Plan Amendments  •  Retirement Plan Design  •  SECURE Act

Editor's Pick IRS Rev. Proc. 2020-40 Provides Extensions of Retirement Plan Amendment Deadlines
Thomson Reuters Practical Law Link to more items from this source
[Guidance Overview]
Sept. 8, 2020

"Under Rev. Proc. 2020-40, Section 15.05 of Rev. Proc. 2016-37 now provides that the Section 15.04(2) deadline applies to discretionary amendments to pre-approved qualified plans for a plan year unless a statute, regulation, or other IRS guidance provides a deadline to adopt a discretionary amendment that is either earlier or later than the deadline under Section 15.04."

Tags: Retirement Plan Amendments  •  Retirement Plan Design

Text of IRS Priority Guidance Plan: Fourth Quarter Update (PDF)
Internal Revenue Service [IRS] Link to more items from this source
[Official Guidance]
Sept. 4, 2020

41 pages. The IRS has issued its fourth quarter update to the agency's 2019-2020 Priority Guidance Plan, in which it describes guidance projects in the current fiscal year. Retirement plan items begin on page 14.

Tags: Retirement Plan Administration  •  Retirement Plan Amendments  •  Retirement Plan Design

Miss a Plan Restatement Deadline? SCP to the Rescue!
Robert Richter, for American Retirement Association [ARA] Link to more items from this source
Sept. 3, 2020

"[Rev. Proc. 2019-19 expanded the Self-Correction Program (SCP)] to include the ability to self-correct certain plan document failures.... The IRS ... has informally stated that SCP was modified to permit the self-correction of missed restatements ... There are three conditions that must be satisfied to use SCP. These are not unique to plan document failures -- they generally apply to any failure trying to be corrected under SCP.... The other option is to use the VCP."

Tags: Retirement Plan Amendments

Text of IRS Notice 2020-68: Miscellaneous Changes Under the SECURE Act and the Bipartisan American Miners Act of 2019 (PDF)
Internal Revenue Service [IRS] Link to more items from this source
[Official Guidance]
Sept. 2, 2020

31 pages. "[T]his notice addresses issues under the following sections of the SECURE Act: Section 105 (small employer automatic enrollment credit), Section 107 (repeal of maximum age for traditional IRA contributions), Section 112 (participation of long-term, part-time employees in Section 401(k) plans), Section 113 (qualified birth or adoption distributions), and Section 116 (permitting excluded difficulty of care payments to be taken into account as compensation for purposes of determining certain retirement contribution limitations). This notice also addresses issues under Section 104 of the Miners Act (reduction in minimum age for in-service distributions) and provides guidance on deadlines for plan amendments."

Tags: 401(k) Plans  •  Misc. Distribution Issues  •  Retirement Plan Amendments  •  SECURE Act

Text of IRS Rev. Proc. 2020-40: Extension of Deadline for Discretionary Amendments to Qualified Pre-Approved Plans (PDF)
Internal Revenue Service [IRS] Link to more items from this source
[Official Guidance]
Sept. 2, 2020

"This revenue procedure modifies section 15.05 of Rev. Proc. 2016-37 ... and section 12.02 of Rev. Proc. 2019-39 ... to expand the situations in which the plan amendment deadline for discretionary amendments made to qualified pre-approved plans and Section 403(b) pre-approved plans may be extended. These modifications are consistent with the extensions of the plan amendment deadlines for discretionary amendments set forth in section 8.02 of Rev. Proc. 2016-37 with respect to qualified individually designed plans and section 6.02 of Rev. Proc. 2019-39 with respect to Section 403(b) individually designed plans."

Tags: Retirement Plan Amendments

IRS Lets Incomplete Determination Letter Applications for Statutory Hybrid Plans Slide Until December 31
Buck Link to more items from this source
[Guidance Overview]
Aug. 27, 2020

"If a plan sponsor is interested in applying for a determination letter for an individually designed statutory hybrid plan and is unable to gather all the necessary documentation by the upcoming August 31, 2020 deadline, they should consider filing an 'incomplete' application as soon as possible. Doing this will allow them additional time until December 31, 2020 to submit the remaining information."

Tags: Cash Balance and Hybrid Plans  •  Reporting to Government Agencies  •  Retirement Plan Amendments

IRS Provides Reprieve for Hybrid Plan Determination Letter Filings ... Sort Of
Seyfarth Link to more items from this source
[Guidance Overview]
Aug. 26, 2020

"Last year, the IRS opened the determination letter process for a limited time period for individually-designed hybrid plans.... Determination letter applications under this limited opportunity must be filed by August 31, 2020.... While the deadline for the filing was not extended and remains next Monday, August 31, 2020, applicants are permitted to submit 'incomplete' filings by August 31, 2020, and supplement the applications through the end of 2020.... This publication did not give any relief for obtaining signatures on the applicable filing forms or for providing notices to interested parties."

Tags: Cash Balance and Hybrid Plans  •  Coronavirus (COVID-19)  •  Reporting to Government Agencies  •  Retirement Plan Amendments

IRS Employee Plans News: Determination Letter Requests for Amended Statutory Hybrid Plans (PDF)
Internal Revenue Service [IRS] Link to more items from this source
[Official Guidance]
Aug. 25, 2020

"[A]pplicants that submit applications by August 31, 2020, that are not complete may supplement their applications through the end of 2020. An application submitted by the August 31, 2020, deadline will need to contain, at a minimum, the following documents: [1] Form 5300, Application for Determination of Employee Benefit Plan; [2] Form 8717, User Fee for Employee Plan Determination Letter Request, with appropriate user fee; and [3] Form 8821, Tax Information Authorization, or Form 2848, Power of Attorney, if applicable.... IRS will send an Application Identification Sheet for additional documents and information.... [I]nclude the Application Identification Sheet with any further submissions so that any documents or information sent after the initial submission can be associated with the initial determination letter application.... EP Determinations will not review a hybrid plan determination letter application described above for completeness until at least January 1, 2021."

Tags: Cash Balance and Hybrid Plans  •  Retirement Plan Amendments

Defined Benefit and Cash Balance Plan Listing of Required Modifications (LRM) and Information Package (PDF)
Internal Revenue Service [IRS] Link to more items from this source
[Official Guidance]
Aug. 11, 2020

190 pages; Aug. 7, 2020. "This information package contains samples of plan provisions that have been found to satisfy certain requirements of the Internal Revenue Code, taking into account changes in the plan qualification requirements, regulations, revenue rulings, and other guidance in the 2020 Cumulative List of Changes in Plan Qualification Requirements [set forth in Notice 2020-14]. Such language may or may not be acceptable in different plans depending on the context in which used." [Also available: redlined version]

Tags: Retirement Plan Amendments  •  Retirement Plan Design

IRS Employee Plans News: Additional Instructions for ESOPs and DB Plans Regarding 3rd Cycle Submissions (PDF)
Internal Revenue Service [IRS] Link to more items from this source
[Official Guidance]
Aug. 11, 2020

Aug. 10, 2020. This issue includes specific instructions for 3rd Cycle submissions: [1] completing Form 5307 for ESOPs, and [2] completing submissions for pre-approved DB plans. The 3rd cycle submission window opens August 1, 2020.

Tags: ESOPs  •  Reporting to Government Agencies  •  Retirement Plan Amendments

Amendment and Submission Deadlines Are Upon Us; Form 5500 Still Due 7/31
Jackson Lewis P.C. Link to more items from this source
[Guidance Overview]
July 27, 2020

"Pre-approved defined benefit plans' second six-year remedial amendment period ends July 31, 2020; The determination letter submission window for statutory hybrid plans, e.g., cash balance plans, ends August 31, 2020; and Calendar year plans required to file Form 5500s must still file the Form 5500 or the Form 5558 extension by July 31, 2020."

Tags: Reporting to Government Agencies  •  Retirement Plan Administration  •  Retirement Plan Amendments

Summer To-Do List: Determination Letter Filing for Cash Balance Plans and Pension Equity Plans
Faegre Drinker Link to more items from this source
[Guidance Overview]
July 24, 2020

"The IRS deadline to file for a determination letter for an individually designed statutory hybrid plan is August 31, 2020. Statutory hybrid plans include cash balance plans, pension equity plans and certain other variable annuity plans. This deadline has not been extended under any recent IRS pandemic-related guidance."

Tags: Cash Balance and Hybrid Plans  •  Retirement Plan Amendments

Must I Complete the Upcoming Mandatory Plan Document Restatement Before Terminating My Plan?
DWC Link to more items from this source
[Guidance Overview]
July 15, 2020

"Between restatement windows, good faith amendments are typically used to update plan language for interim legislative and regulatory changes.... [T]hese amendments must usually be adopted within a year or two following the law change.... While a full plan document restatement is typically more expensive than adoption of good faith amendments, a full restatement allows you to rely on the IRS approval of that language.... Regardless of the method chosen, full restatement or good faith amendment, it is absolutely critical the plan document is updated by the time you terminate your plan."

Tags: Retirement Plan Amendments

Summer To-Do List: Determination Letter Filing for Cash Balance Plans and Pension Equity Plans
Faegre Drinker Link to more items from this source
July 15, 2020

"The IRS deadline to file for a determination letter for an individually designed statutory hybrid plan is August 31, 2020.... This deadline has not been extended under any recent IRS pandemic-related guidance.... Notice to interested parties of the application for a determination letter ... [needs] to be sent out ... no later than August 21, 2020, in order to submit an application by the August 31, 2020, deadline."

Tags: Cash Balance and Hybrid Plans  •  Retirement Plan Amendments

Updated Operational Compliance List from IRS, for Plan Qualification Requirements Effective in 2020
Internal Revenue Service [IRS] Link to more items from this source
[Official Guidance]
July 9, 2020

"The Operational Compliance List is provided per Rev. Proc. 2016-37 ... to help plan sponsors and practitioners achieve operational compliance by identifying changes in qualification requirements effective during a calendar year.

Tags: 401(k) Plans  •  403(b) Plans and Annuities  •  Retirement Plan Amendments  •  Retirement Plan Design

IRS Provides Guidance on 2020 Required Minimum Distribution Waivers and More
Groom Law Group Link to more items from this source
[Guidance Overview]
June 26, 2020

"[T]he plan sponsor can elect to apply the 'no new annuity starting date' rule so spousal consent should not apply ... The RMD amount is not an eligible rollover distribution for withholding purposes so mandatory 20% withholding does not apply.... The 2020 RMD waiver does not apply to defined benefit plans."

Tags: CARES Act  •  Coronavirus (COVID-19)  •  Required Minimum Distributions (RMDs)  •  Retirement Plan Administration  •  Retirement Plan Amendments


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