The Form 5330, an excise tax return used by certain employers and individuals to pay penalty taxes, must be filed electronically for taxable years ending on or after December 31, 2023. As described below, this may create issues for sponsors of qualified retirement plans.
Retirement Plans
IRS Issues Guidance on Secure 2.0 – What Plan Sponsors Need to Know
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In late December 2023, approximately one year after Congress enacted the Setting Every Community Up for Retirement Enhancement Act of 2022 (“SECURE 2.0”), the Internal Revenue Service (the “IRS”) released Notice 2024-2 (the “Notice”) providing much needed guidance, in the form of questions and answers, on 12 of the 90 new provisions added by SECURE 2.0.…
IRS Announces 2024 Retirement Plan Limits: Modest Increases
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The Internal Revenue Service announced the 2024 cost-of-living adjustments to the dollar limitations for qualified retirement plans and other benefits, and the Social Security Administration announced its own cost-of-living adjustments for 2024. Most of the dollar limits, including the elective deferral contribution limit for 401(k), 403(b) and 457(b) plans, the annual compensation limit under 401(a)(17) and the maximum annual contribution limit under Code Section 415(c) will increase from 2023 limits. The dollar limit for catch-up contributions (if age 50 or older) remains the same as the 2023 limit.…
SECURE 2.0: Two-Year Transition Relief Announced for Roth Catch-Up Contributions
By Laura Ferguson on
Long-awaited guidance was received from the IRS on Friday related to the SECURE 2.0 requirement that catch-up contributions for high-income participants in 401(k), 403(b), and governmental 457(b) plans be made as Roth contributions. Notice 2023-62 provides for a 2-year administrative transition period that will be welcome relief to retirement plan sponsors and record keepers alike.…
IRS Proposes Regulations on Using Forfeitures in Qualified Retirement Plans
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Posted in Retirement Plans
Introduction
On February 27, 2023, the Department of the Treasury (“Treasury”) and Internal Revenue Service (“IRS”) issued proposed regulations (the “Proposed Regulations”) relating to forfeitures in tax-qualified defined benefit and defined contribution plans. Forfeitures generally arise when a participant terminates employment before completing the…
Locke Lord QuickStudy: Secure 2.0: Top Changes Affecting Retirement Plans
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Posted in Retirement Plans
The Securing a Strong Retirement Act of 2022 (“SECURE 2.0”) was signed into law by President Joseph Biden on December 29, 2022 as part of the Consolidated Appropriations Act of 2023. SECURE 2.0 expands upon the retirement plan provisions contained in the Setting Every Community Up for Retirement Enhancement Act…
IRS Announces 2023 Retirement Plan Limits – Unprecedented Increases to All Limits
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Posted in IRS, Retirement Plans
The Internal Revenue Service announced the 2023 cost-of-living adjustments to the dollar limitations for qualified retirement plans and other benefits, and the Social Security Administration announced its own cost-of-living adjustments for 2023. All of the dollar limits, including the elective deferral contribution limit for 401(k), 403(b) and 457(b) plans, the…
IRS Notice 2022-33 Extends Retirement Plan Amendment Deadlines
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Posted in IRS, Retirement Plans
On August 3, 2022, the Internal Revenue Service issued IRS Notice 2022-33, which extends the deadline for amending certain plans with the applicable requirements of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), the Bipartisan American Miners Act of 2019 (Miners Act), and one provision…
IRS Announces New 90-Day Pre-Examination Compliance Pilot Program for Retirement Plans
By E. Phillip Bush on
Posted in IRS, Retirement Plans
In its June 3, 2022 Employee Plans Newsletter, the IRS announced a pilot pre-examination retirement plan compliance program beginning in June 2022. Under the pilot program, the IRS will notify a qualified plan sponsor by letter that its retirement plan has been selected for an upcoming examination.
The IRS’s letter…
IRS Announces 2022 Retirement Plan Limits – Most Limits Increase
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Posted in IRS, Retirement Plans
The Internal Revenue Service announced the 2022 cost-of-living adjustments to the dollar limitations for qualified retirement plans and other benefits, and the Social Security Administration announced its own cost-of-living adjustments for 2022. Most of the dollar limits, including the elective deferral contribution limit for 401(k), 403(b) and 457(b) plans, the…