Art of the Qualified Plan Audit

Posted by Christopher J. Ciminera, CPA, QKA Update – April 29, 2020 On Wednesday, April 29, 2020 the Employee Benefits Security Administration (EBSA) also posted a Disaster Relief Notice 2020-01. In this notice, the EBSA provides relief to plan sponsors regarding the possibility of lags in deposits due to the recent COVID-19 issues which was … Continued

Posted By Maria T. Hurd, CPA, RPA Coronavirus-Related Distributions are NOT “Eligible Rollover Distributions,” but They Can be Rolled Over: What Withholding Rate Applies? To address the novel Coronavirus, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) has created a novel type of distribution from retirement plans: the Coronavirus-Related Distribution (“CRD”). It … Continued

Posted by Maria T. Hurd, CPA, RPA In pandemic times, employer contributions to retirement plans are not immune to cost-cutting initiatives, as corporate cash flows and liquidity dwindle. However, discontinuing discretionary contributions does not always eliminate all employer contribution requirements, and it is important for employers to anticipate and budget for any contributions that cannot … Continued

Posted by Maria T. Hurd, CPA, RPA Every year, retirement plan audit season starts in early April, shortly after discrimination tests are complete and audit packages for the more straightforward plans become available. Human resources managers, payroll managers, and chief financial officers at the plan sponsor collaborate to provide the auditor with payroll, personnel data, … Continued

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

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

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

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

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

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