"Section 409(p) 'simply' states an S Corp ESOP cannot allocate shares to disqualified persons during any nonallocation year. As such it's important to understand three terms: Disqualified Person, deemed-owned shares and nonallocation year. The testing itself can be simple or become complicated."  MORE >>

"[T]he final rule addresses how amounts: [1] Paid by a plan for previously suspended benefits are considered in the calculation of withdrawal liability. [2] Repaid to the PBGC in traditional financial assistance are to be considered The final rule, which took effect on December 7, 2023, is consistent with informal guidance that the PBGC issued earlier in the year."  MORE >>

"The good news is that the 81-page notice does not appear to require much immediate action from plan sponsors before the end of 2023. However, [Notice 2024-02] does provide important clarification on a few significant SECURE 2.0 provisions, including the optional treatment of employer contributions as Roth (section 604). On this subject, the notice devotes substantial attention to addressing key implementation issues, including eligibility and vesting requirements and how employer Roth contributions will be taxed."  MORE >>

"This article provides reporting and disclosure requirements under ongoing calendar-year qualified plans in the United States."  MORE >>

"[W]ith taxable income at a low point compared to their earning years, new retirees may want to consider Roth conversions for their Traditional IRA assets. With a Roth IRA, provided the account has been open for at least five years, withdrawals are tax-free.... If an investor knows they may never tap their Roth assets for spending, the Roth account still passes to heirs tax-free."  MORE >>

"Converting a traditional IRA to a Roth IRA is accomplished with two steps: a distribution from a traditional IRA and a rollover to a Roth IRA. But, while seeming simple, the applicable rules can complicate the results. [This article covers] the key operational considerations for getting Roth IRA conversions right."  MORE >>

"[T]he breadth of the Proposed Rule could prohibit activities -- like sales conversations and plan sponsor investment conversations -- that have traditionally not been considered fiduciary activities. By assigning fiduciary status to plan sales, the Proposed Rule will reduce the flow of information to employers looking to sponsor retirement plans. This may reduce plan formation and is contrary to Congressional intent.... Given these significant impacts, the Department should withdraw the Proposed Rule. "  MORE >>

"The [IRS] today provided tax relief for individuals and businesses in parts of Tennessee affected by severe storms and tornadoes that began on Dec. 9. These taxpayers now have until June 17, 2024, to file various federal individual and business tax returns and make tax payments.... Currently, this includes Davidson, Dickson, Montgomery and Sumner counties. Individuals and households that reside or have a business in these counties qualify for tax relief."  MORE >>

"Follow your plan documents ... Avoid accelerating payment ... Carefully consider new deferred compensation ... Value the awards properly."  MORE >>

"Although generally excluded from Form W-2 reporting, the U.S. Internal Revenue Code requires that separate information returns be furnished to most U.S. taxpayers who exercised ISOs during 2023 (an 'optionee') or who transferred shares during 2023 that were acquired under an ESPP (a 'transferor').... The deadline for furnishing Forms 3921 and 3922 to optionees and transferors is January 31, 2024. The deadline for filing Forms 3921 and 3922 with the IRS is February 28, 2024,"  MORE >>