Products September 11, 2017

Book Offers Comprehensive ERISA Compliance Insights

Readers of a new publication from Research and Markets are taken step by step through ERISA regulations to help ensure that their plans are properly structured, qualified and implemented.

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Research and Markets has published “Employee Benefits Law: ERISA and Beyond,” a new book that details the many compliance requirements and processes of the Employee Retirement Income Security Act (ERISA).

The publication details what it takes to maintain compliance with respect to all three regulators tasked with enforcing the various parts of ERISA: the Internal Revenue Service (IRS); the Department of Labor (DOL); and the Pension Benefit Guaranty Corporation (PBGC).

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In addition, the book details how ERISA is affected by and interacts with major legislation, including: the Tax Reform Act of 1986; the Americans with Disabilities Act of 1990; the Family and Medical Leave Act of 1993; and the Pension Protection Act of 2006, which was the most significant overhaul of ERISA since the Tax Reform Act of 1986.

Readers are taken “step by step through these and other statutes and regulations to help ensure that their plans are properly structured, qualified and implemented.”

The firm notes that the book is “cited by the U.S. Supreme Court and offers a definitive two-volume guide for attorneys, accountants, actuaries, consultants, and other professional advisers.” Readers will gain insight on the goals of the various types of plans; tax and non-tax benefits for both employers and employees; investment diversification requirements; transfers of qualified employer securities; qualification requirements; cafeteria plan regulations; fiduciary responsibilities; filing and disclosure obligations; and much more.

Finally, the publication also features IRS and PBGC forms and includes thorough coverage of recent landmark Supreme Court decisions, the Katrina Emergency Tax Relief Act of 2005, the Pension Funding Equity Act of 2004, the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the IRS’s Voluntary Compliance Resolution (VCR) Program, the Small Business Job Protection Act of 1996, and other developments.

More information is available here. 

Compliance September 11, 2017

IRS Reminds 403(b) Plan Sponsors of Common Plan Errors

In a new publication, the IRS lists rules for 403(b) compliance and resources from the agency to help plan sponsors.

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In an updated page on its website, the Internal Revenue Service (IRS) has listed common 403(b) plan mistakes, IRS services, products and assistance to help 403(b) plan sponsors stay in compliance.

“It’s important to know the tax rules that apply to your 403(b) plan and to pay attention to the operation of your plan,” the IRS says.

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One area in which the IRS says it commonly finds mistakes is with the written plan document requirements. The IRS reminds plan sponsors that a 403(b) plan doesn’t need to be a single plan document; sponsors can compile the salary reduction agreements, the contracts that fund the plan, and written procedures for eligibility, benefits, dollar limitations, nondiscrimination and universal availability. However, the IRS notes a single plan document makes administration easier, especially if the plan has multiple vendors.

There is now a pre-approved plan program from the IRS, and Section 21 of Revenue Procedure 2013-22 establishes a remedial amendment period under which an eligible employer can retroactively correct form defects in its written 403(b) plan in order to satisfy the written plan document requirement of the 2007 final regulations. Revenue Procedure 2017-18 provides that the last day of the remedial amendment period for 403(b) plans is March 31, 2020.

The IRS also notes it commonly finds mistakes regarding:

  • Ineligible employers;
  • Universal availability rules;
  • Depositing elective deferrals;
  • Excess elective deferrals;
  • Contribution limits;
  • Loans;
  • Hardship distributions;
  • Post-severance contributions; and
  • In-service exchanges and transfers.

The new page includes links to resources from the IRS to aid in 403(b) plan compliance, including its 403(b) Plan Fix-It Guide.

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