Topic: Regulatory Updates

Tax Reform Update

An analysis of current tax reform proposals, both from the Administration and Congress, and their potential implications for retirement plans.

Potential Tax Reform Implications for COLI and BOLI

Implications of the 2016 election relative to the taxation of life insurance, particularly the taxation of bank-owned life insurance (BOLI) and corporate owned life insurance (COLI).

2017 IRS Pension Plan Limits

Each year, the Internal Revenue Service publishes updated dollar limitations for tax-qualified defined benefit and defined contribution plans. The IRS announced that there will be cost of living adjustments to certain qualified plan limitations for 2017.

New Proposed Guidance for Deferred Compensation Plans

Along with proposed regulations under Code Section 409A that were issued on June 22, 2016, the Internal Revenue Service simultaneously published proposed regulations providing updated guidance on deferred compensation plans under Internal Revenue Code Section 457. The regulations will generally apply to amounts deferred in calendar years after the date they are finalized, and to amounts deferred prior to that date that were not previously included in income. Until finalized, employers may rely on the proposed regulations.

Department of Labor Publishes Final Fiduciary Regulations

On April 6, 2016, the Department of Labor (“DOL”) published final regulations defining the types of financial communications with plan sponsors and participants that constitute fiduciary advice under ERISA.

IRS Issues Changes to Determination Letter Program

In IRS Announcement 2015-19, the IRS announced it is making changes to its determination letter program.

IRS Reminds Sponsors to Keep Records for Hardship Withdrawals and Plan Loans

The Internal Revenue Service (IRS) recently reminded retirement plan sponsors to keep certain records in regards to hardship withdrawals and plan loans.

Supreme Court Holds No “Presumption of Prudence” Exists for ESOP Fiduciaries

The Supreme Court held that fiduciaries of ESOPs are not entitled to a “presumption of prudence” when their decisions to buy or hold employer stock are challenged.

IRS Launches 409A Audit Initiative

Last month, the IRS announced that a Compliance Initiative Project (CIP) was underway, involving compliance with Internal Revenue Code Section 409A.

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