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IRS Updates Operational Compliance List

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.