Practice Management
The IRS has updated the information it provides to help plan sponsors and practitioners achieve operational compliance by identifying changes in qualification requirements effective during a calendar year. The operational compliance list:
- identifies matters that may involve either mandatory or discretionary plan amendments depending on the particular plan;
- may reference other significant guidance that affects daily plan operations; and
- is available on the IRS webpage only.
The IRS has updated the operational compliance list to include changes that are effective in 2020:
- Final regulations relating to hardship distributions
- Extension of temporary relief for closed defined benefit pension plans
- Additional temporary nondiscrimination relief for closed defined benefit pension plans
- Increase in 10 percent cap for automatic enrollment safe harbor after first plan year
- Rules relating to election of safe harbor 401(k) status
- Portability of lifetime income options
- Employees of church-controlled organizations participating in section 403(b)(9) retirement income accounts
- Penalty-free withdrawals from retirement plans for individuals in case of birth or adoption
- Increase in age for required beginning date for mandatory distributions
- Difficulty of care payments treated as compensation for retirement contribution limitations
- Modification of nondiscrimination rules to protect older, longer service participants
- Modification of required distribution rules for designated beneficiaries
- Provisions relating to plan amendments
The IRS updates the operational compliance list periodically to reflect new legislation and IRS guidance. The operational compliance list is not intended to be a comprehensive list of all IRS guidance or new legislation put in place and enacted in a year that could affect a particular plan.
- Log in to post comments