Health FSA Carryovers and Eligibility for HSAs

Chief Counsel Memorandum addresses impact of Health FSA carryovers on eligibility for a Health Savings Account. Document Excerpt May an otherwise eligible individual under section 223(c)(1)(A) of the Internal Revenue Code (the Code) contribute to an HSA if the individual participates in a general purpose health FSA solely as the result of a carryover of […]

Correction Procedures for Improper Health FSA Payments

A new Chief Counsel Memorandum discusses correction procedures for improper Health Flexible Spending Arrangement payments. Document Excerpt This Chief Counsel Advice responds to your request for assistance. This advice may not be used or cited as precedent.   Link http://www.irs.gov/pub/irs-wd/1413006.pdf

Employee Plans News

The most recent edition of the Employee Plans News includes a discussion of the IRS’  new position on the “one rollover per year” restriction, along with announcements allowing for the withdrawal of determination letter applications for Cycle C defined benefit applicants that now wish to adopt a pre-approved plan with cash balance language. Document Excerpt […]

Two-Year Period for Adopting Pre-Approved Defined Contribution Plans Announced

The IRS has announced the second two-year period for adopting pre-approved plans under Revenue Procedure 2007-44. Document Excerpt Employers using these pre-approved plan documents to restate a plan for the plan qualification requirements on the 2010 Cumulative List will be required to adopt the plan document by April 30, 2016. Starting May 1, 2014 and […]

Modification to Procedures for Issuing Advisory Letters for 403(b)s

Revenue Procedure 2014-28 modifies Revenue Procedure 2013-22 which set forth the procedures for issuing opinion and advisory letters to Section 403(b) pre-approved plans. Document Excerpt  This revenue procedure modifies Rev. Proc. 2013-22, 2013-18 I.R.B. 985, which sets forth the procedures of the Internal Revenue Service (Service) for issuing opinion and advisory letters for § 403(b) […]

Guidance on IRA One Rollover Per Year Rule

After the Tax Court’s decision in Bobrow providing a much more restrictive interpretation of the one rollover per year rule, Announcement 2014-15 provides some transition relief. Document Excerpt Link http://www.irs.gov/pub/irs-drop/a-14-15.pdf

Cycle C Individually Designed Cash Balance Plans May Withdraw Application

Individually designed cash balance plans submitted in Cycle C have until May 31, 2014 to request a withdrawal of the determination letter application if they now wish to instead adopt a pre-approved plan. Document Excerpt  Withdrawal of Cycle C applications – Cycle C determination letter applicants who intend to adopt a pre-approved cash balance plan […]

April Lump Sum Rates

The PBGC releases the April lump sum interest rates. Document Excerpt The immediate interest rate for valuing lump sum payments for the month of April 2014 is 1.50% and the deferred interest rate I1 is 4.00%, I2 is 4.00%, and I3 is 4.00%. (The immediate interest rate for March 2014 was 1.50% for lump sum […]

Update on Interest Rates

The IRS releases updated guidance in the form of Notice 2014-6, on the weighted average interest rates and permissible ranges for funding purposes. Document Excerpt  This notice provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), and the 24-month average segment rates under § 430(h)(2) of the Internal Revenue […]

Premium Payment Instructions for 2014

The PBGC releases premium payment instructions for 2014. Document Excerpt Link http://www.pbgc.gov/documents/DRAFT-2014-Premium-Payment-Instructions.pdf

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