The federal government, a purveyor of regulations and legislation, has set before the 403(b) community a veritable blue plate special — and one with a long shelf life to boot. NTSA President Susan Diehl of PenServ Services, Inc., outlined what’s on that plate at NTSA’s 403(b) Summit in Washington, D.C., on June 24.
Diehl identified a crowded agenda of regulatory, judicial and legislative activity that’s especially important to the 403(b) community:
- Proposed IRA regulations
- Publication 590 for 2014
- Rollovers to qualified plans
- Senate Finance Committee consideration of a bipartisan agreement on expired and expiring provisions, including qualified charitable distributions
- Supreme Court consideration of Clark v. Rameker, a case that concerns inherited IRAs
- Qualified plan restatements in the context of implementation of the Pension Protection Act
- Tax treatment of church plans
- IRS list of required modifications language for 403(b) plans
- Securities and Exchange Commission registration for municipal funds
- The prospect of proposed regulations concerning charter schools
- Instructions for the 2014 Forms 1099-R and Forms 5498
- IRS implementation of the Supreme Court’s Windsor ruling that overturned Section 3 of the federal Defense of Marriage Act, which had defined marriage as occurring only between a man and a woman
Diehl noted that Publication 590 for 2014 will be in two parts. Publication 590-A will focus on contributions to traditional IRAs and Roth IRAs, and will include rules for rollovers and conversion contributions. Publication 590-B will focus on distributions from traditional IRAs and Roth IRAs, and will include rules for required minimum distributions and IRA beneficiaries.
Diehl observed that in the guidance the IRS issued in the wake of Windsor, the agency did not address the impact of the ruling on IRAs and 457 plans. She added that there is no plan for the IRS to issue any new guidance; any further direction would come in an update to IRS FAQs on the subject. Not only that, she remarked, “We believe based on verbal discussions that IRS will not update model IRAs, SEPs and SIMPLE IRAs; however, you need to check your plans for current definitions.” She added, “The bottom line question is this: Is your document written in a way that would violate the Windsor decision?”
Diehl also encouraged attendees to visit Save My 403(b) to find information on contacting legislators regarding bills that could affect 403(b)s.
John Iekel is Senior Writer and Editor for the NTSA Net portal.
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