This issue’s topics include:
Failing to enroll eligible employees in your plan
What to watch out for and how to fix it
Administrative glitches are practically inevitable at some point when operating a retirement plan, given the myriad ways things can get off track. Case in point: inadvertently failing to add a newly eligible employee to the roster of 401(k) plan participants. While excluding an eligible employee isn’t the worst mistake plan sponsors could make, this article looks at why it’s important to identify the error sooner rather than later and take prompt remedial action.
IRS OKs student loan debt reduction program linked to 401(k)s
Student loan debt can be a significant deterrent to many employees’ retirement savings efforts. Combining student debt payment support with a 401(k) plan is a tricky business. But one employer managed to navigate ERISA restrictions to combine tuition repayment and 401(k) plan benefits in a way that passed muster with the IRS. This article summarizes a recent private letter ruling in which the IRS gave its approval to an employer whose plan was subsequently rolled out to employees.
“Contingent benefit” rule, 26 USC 401(k)(4)(A), 26 CFR 1.401(k)-1(e)(6). PLR 201833012.
Are you ready for VCP electronic filing?
As of April 1, the IRS’s Voluntary Correction Program (VCP) will no longer accept paper forms and paper checks to pay fees. Instead, forms and fees must be submitted electronically via Pay.gov. This article discusses the changes made in the IRS’s Revenue Procedure 2018-52; it’s the most recent change to the Employee Plans Compliance Resolution System.
2018 vs. 2019 retirement plan limits
This chart contains updated retirement plan limits for 2019.
Compliance alert
This feature lists a few key tax reporting deadlines for February through April.
As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our Employee Benefit Plan Services, please feel free to contact me directly.
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