Most Americans prefer not to pay more in income tax than absolutely required or to pay taxes any sooner than necessary. This includes many retired individuals who do not need to tap into their employer-sponsored retirement plan benefits yet but are required to do so – and to pay taxes on those benefits – once
Distributions
TOP 5 EMPLOYEE BENEFIT PLAN OPPORTUNITIES FOR EMPLOYERS TO CONSIDER IN 2021
A spate of recent legislation and IRS guidance promises to make 2021 an active year for any employer seeking to provide its employees with a competitive array of employee benefits. My “top 5” list of employee benefits that an employer should introduce or enhance in 2021, to improve retention and/or recruitment, is set forth below:…
The IRS Released the Final Regulations for Plan Loan Offset Rollovers
By Raymond P. Turner on
Posted in 401(k) plan, 403(b), Distributions, ERISA, ERISA Plan Administration, IRS, Plan Loans, Tax Cuts and Jobs Act
The IRS released final regulations on the provisions of the Tax Cuts and Jobs Act (“TCJA”) that added Section 402(c)(3) of the Internal Revenue Code, effective January 1, 2018, special rollover relief for qualified plan loan offset (“QPLO”) amounts.
As per our initial blog on the TCJA change, distributing a plan loan offset occurs under…
The Final Regulations For 401(k)/403(b) Hardship Distributions
By Rose Marie Plato on
Posted in Amendments, Basic Plan Document, Bipartisan Budget Act, defined contribution, Distributions, DOL, EBSA, ERISA, Hardships, IRS, QMAC, QNEC, Retirement plans, Uncategorized
On September 23, 2019, the Treasury Department and IRS published final regulations for hardship distributions from both 401(k) and 403(b) plans (the “Final Regulations”). Essentially the hardship distributions changes relax the hardship distribution requirements (i.e., making it easier for participants to obtain hardship distributions) and eliminate many burdens following a hardship distribution (i.e., allowing participants…