Compliance October 7, 2019

IRS Establishing Recurring Remedial Amendment Periods for 403(b) Plans

Revenue Procedure 2019-39 also provides a limited extension of the initial remedial amendment period for certain form defects.

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In April 2013, the IRS issued Revenue Procedure 2013-22 establishing a pre-approved plan program for 403(b)s and offering a remedial amendment period for 403(b) plan documents. The last day of the remedial amendment period for 403(b) plans is March 31, 2020.

Now, the IRS has issued Revenue Procedure 2019-39 setting forth a system of recurring remedial amendment periods for correcting form defects in 403(b) individually designed plans and 403(b) pre-approved plans occurring after the initial remedial amendment period ends. It also provides a limited extension of the initial remedial amendment period for certain form defects. The IRS says issues that cannot be retroactively amended may be corrected under its Employee Plans Compliance Resolution System (EPCRS).

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Rev. Proc. 2013-22 provides that the IRS expects future guidance to require the restatement of 403(b) pre-approved plans every six years. Accordingly, the new revenue procedure establishes a system of 403(b) pre-approved plan cycles under which an entity offering a pre-approved plan document may submit a proposed 403(b) pre-approved plan for review and approval by the IRS.  Once approved, the plan may be made available for adoption by eligible employers. 

Revenue Procedure 2019-39 also provides deadlines for the adoption of plan amendments for 403(b) individually designed plans and pre-approved plans.

In the revenue procedure the Department of the Treasury and the IRS announce they intend to issue additional guidance, prior to the date that 403(b) pre-approved plans may next be submitted for review, relating to the system of recurring remedial amendment periods and the system of recurring pre-approved plan cycles.
Benefits October 4, 2019

Bend Pairs HSAs with AI

The company says the solution completely automates the entire HSA process from start to finish, so there is no time-consuming paperwork to fill out or educational materials to pore over.

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Bend Financial has developed a health savings account (HSA) that integrates Artificial Intelligence (AI) to help participants better manage their HSA.

According to Bend Financial, the solution completely automates the entire HSA process from start to finish, so there is no time-consuming paperwork to fill out or educational materials to pore over. Individuals simply set up an online profile and Bend’s AI tools help them navigate managing their HSA.

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The system offers customized financial advice. This enables people to make smarter financial, investment and health care decisions, based on their specific requirements and short- and long-term goals in real time. 

Bend notes that it has been estimated that 80% of health care out-of-pocket payments that are tax deductible go unclaimed because people don’t know that they can get tax breaks on them.

The system permits people to open an HSA without funding it immediately and can subsequently guide people on how to do so when they incur health care costs, notes Itamar Romanini, chief revenue officer at Bend. The system can also link their checking and credit card accounts so that if a health-care transaction is made, the AI will alert them that it is eligible for pre-tax treatment, he says. On average, that will save them 25% of the health care costs, Romanini says.

“We believe there will be a growing role for AI in HSAs,” he says. “As their situation changes throughout their lives, it can guide them on how much to fund their HSA by looking at their past history. Long-term, we want to integrate HSAs with retirement accounts so that they can maximize their tax savings and reduce their risks. It can also help them decide which insurance plan to choose by showing them the different costs and risks.”

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