Year: 2020
How do the new Required Minimum Distribution rules under the SECURE Act affect financial statement audits?
April 08, 2020
In Summary Correction Programs Offer Options for RMD Failures: The Employee Plan Compliance Resolution System (EPCRS) provides methods like the Self-Correction Program (SCP) and the Voluntary Correction Program (VCP) for fixing missed RMDs. While VCP allows the plan sponsor to request a waiver of the participant’s excise tax, using the convenient SCP does not automatically … Continued
How does the SECURE Act allow Penalty-Free Distributions from Retirement Plans for Childbirth or Adoption Expenses?
March 25, 2020
Posted by Maria T. Hurd, CPA, RPA Updated 3.26.2020 Children are a financial hardship!!! The IRS has finally recognized it by adding a new type of penalty-free distribution from defined contribution retirement plans: the Qualified Birth or Adoption Distribution (QBOAD), effective January 1, 2020. The new provision is optional, so plan sponsors will need to … Continued
Could Inclusion of Long-Term, Part-Time Employees under the Secure Act Trigger a Financial Statement Audit?
March 11, 2020
Posted by Maria T. Hurd, CPA, RPA Large Plans Require Financial Statement Audits Generally, plans with at least 100 participants on the first day of the plan year must engage an independent qualified public accountant to perform an audit of the plan’s financial statements. The audit report, financial statements, note disclosures, and supplementary schedules are … Continued
Revisiting the Delinquent Filer Voluntary Compliance Program After the SECURE Act
February 26, 2020
Posted by Christopher J. Ciminera, CPA, QKA A major change that comes with the passage of the SECURE (Setting Every Community Up for Retirement Enhancement) Act is a substantial increase in the penalty amounts imposed by the Internal Revenue Service (IRS) for a retirement plan’s failure to file a return. The increased penalty is part … Continued
What are the Administrative Procedure Changes Under the SECURE Act?
February 12, 2020
In Summary New Flexibilities Introduced for Plan Sponsors: The law permits businesses to adopt qualified plans until the tax return due date (including extensions) for employer contributions, applying to tax years after 2019. It also provides a remedial amendment period through the 2022 plan year for making retroactive changes to reflect new operational rules. The … Continued
Are Retirement Savings More Secure under the SECURE Act?
January 29, 2020
In Summary Revenue Provisions Affecting Required Distributions and Penalties: The law extends the payout period for most non-spousal inherited retirement accounts (DC plans and IRAs) from five years to ten years, eliminating the lifetime distribution option for most non-spousal beneficiaries. Additionally, penalties for failure to file Form 5500, Form 8955-SSA, and other required statements or … Continued