John Iekel
By John Iekel 1/10/2021
The pandemic has prompted a high number of Americans to take money out of their retirement accounts, according to a recent study.
How high? Kiplinger and Personal Capital report that they found in their recent study that 60% of Americans have borrowed or withdrawn funds from their 401(k) or IRA...
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By John Iekel 1/10/2021
The IRS has updated the procedures for determination letter requests. The new procedures are outlined in Revenue Procedure (Rev. Proc.) 2021-04.
Rev. Proc. 2021-04 is a general update of Rev. Proc. 2020-4, https://www.irs.gov/irb/2020-01_IRB#REV-PROC-2020-4 which sets forth:
general information...
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By John Iekel 1/10/2021
CalSavers, the state-run retirement program for employees whose employers do not offer a retirement plan, grew in the fourth quarter of 2020 while the opt-out rate held steady, according to the CalSavers Retirement Savings Board.
Growth
The board reports growth in registrations, accounts and...
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By John Iekel 1/5/2021
The IRS office of Tax Exempt & Government Entities has outlined its compliance program and priorities for 2021.
In the fiscal year 2021 program letter for the office, TE/GE Commissioner Tammy Ripperda and Deputy Commissioner Edward Killen note that “The challenges of COVID-19 during fiscal...
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By John Iekel 12/30/2020
We are on the cusp of a new year, and there are some important developments to keep in mind as 2021 arrives.
Required Minimum Distributions
The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, enacted on Dec. 20, 2019, raised the age for required minimum distributions...
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By John Iekel 12/18/2020
The Office of Information and Regulatory Affairs of the Office of Management and Budget has outlined the regulatory agenda of the IRS, and the status of the rules that are part of it.
Proposed Rules
Reporting and Notice Requirements for Deferred Vested Benefits Under Section 6057. Would provide...
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By John Iekel 12/10/2020
The IRS on Dec. 9 issued guidance that addresses certain provisions of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE) Act Provisions that increase the automatic enrollment cap percentage and affect safe harbor plans, including safe harbor 401(k) plans and certain 403...
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By John Iekel 12/3/2020
Employee opt outs from CalSavers and Illinois Secure Choice, the programs California and Illinois run that provide retirement plan coverage for employees whose employers do not offer a retirement plan, are down as December starts.
Both plans allow employees to opt out of participating if they...
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By John Iekel 12/2/2020
While a strong majority of employers provide access to a plan, that doesn’t necessarily spell participation rates that match, says the Congressional Research Service (CRS).
In a new report, “Worker Participation in Employer-Sponsored Pensions: Data in Brief,” the CRS provides data on the...
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By John Iekel 11/25/2020
At a Nov. 10 meeting of the Oregon Retirement Savings Board (ORSB), the board voted to enter into termination negotiations with Ascensus to end the arrangement under which the firm has been the service provider for OregonSaves.
In an email to the NTSA Advisor, Michael Parker, Executive Director...
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By John Iekel 11/24/2020
Illinois State Treasurer Michael Frerichs has reported on the status of Illinois Secure Choice, the state-sponsored retirement program that provides a Roth IRA to employees who do not have access to a retirement savings plan through their employers.
According to Frerichs, as of November 2020, more...
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By John Iekel 11/20/2020
The IRS on Nov. 20 issued the 2020 list of required amendments (RA) for individually designed plans qualified under Internal Revenue Code Sections 401(a) and 403(b). The list is contained in Notice 2020-83.
Under Section 5 of Revenue Procedure (Rev. Proc.) 2016-37, in the case of a qualified...
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By John Iekel 11/19/2020
The priority guidance plan that the Treasury and IRS have issued for 2020-21 includes plans for action that will affect retirement plans. They unveiled the plan on Nov. 17.
The 2020-2021 Priority Guidance Plan contains guidance projects that will be the focus of the efforts by the Treasury and...
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By John Iekel 11/18/2020
The sudden rise and spread of COVID-19 wreaked havoc with plan administration—including communication with plan participants concerning the plan and changes to it.
In “Communicating Retirement Plan Changes During COVID-19,” an entry in Cammack Retirement’s Insights blog, Joey Payne discusses the...
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By John Iekel 11/16/2020
The IRS has announced in Notice 2020-82 that it has extended the deadline by which contributions to a single-employer pension plan can be made under the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act. The IRS issued Notice 2020-82 on Nov. 16.
The deadline for contributions under...
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By John Iekel 11/12/2020
After the economic strains of 2020—and all that has meant for retirement plans and those who serve and participate in them—there are signs of hope for 2021, said an industry expert in a recent webinar.
In the PenChecks webinar “The US Economy in 2021—Implications for the Pension Industry,” Alex...
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By John Iekel 11/12/2020
Many deadlines for various forms of relief under the Coronavirus, Aid, Relief and Economic Security (CARES) Act have passed. But not all, and there are deadlines looming for provisions concerning loans and distributions.
Loan Repayments
The CARES Act provides that any loan repayments due...
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By John Iekel 11/12/2020
In a Nov. 11 webinar, American Retirement Association Director of Legislative Affairs Andrew Remo took at look at where current legislative proposals stand in the wake of the elections.
Currently, Congress is in a “lame duck” session, the period between the election and the end of the 116th...
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By John Iekel 11/12/2020
The American Retirement Association (ARA) has submitted a comment letter to the IRS about long-term, part-time (LTPT) employees.
The Nov. 2 letter was in response to the IRS invitation in Notice 2020-68 regarding how to reduce potential administrative burdens related to counting years of service...
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By John Iekel 11/9/2020
The IRS on Nov. 6 issued final regulations that update the life expectancy and distribution period tables used for purposes of determining required minimum distributions (RMDs).
These regulations affect participants, beneficiaries and plan administrators of these qualified retirement plans and...
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