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Legislative and Regulatory Update

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Legislative and Regulatory Update Presented by: Joleah White, Manager EP R&A Planning Analysis & Reporting October 2, 2012 Current Employee Plans Organization Robert ... – PowerPoint PPT presentation

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Title: Legislative and Regulatory Update


1
Legislative and Regulatory Update
  • Presented by
  • Joleah White, Manager
  • EP RA Planning Analysis Reporting
  • October 2, 2012

2
Current Employee Plans Organization
  • Robert Choi, Director, Employee Plans (EP)
  • Andrew Zuckerman, Director, EP RA
  • Determinations
  • Determinations Quality Assurance
  • Voluntary Compliance
  • Technical
  • Technical Guidance and Quality Assurance
  • Monika Templeman, Director, EP Exam
  • Five Examination Areas
  • Exam Programs and Review

3
Discussion Topics
  • EP Determinations Update
  • EP Voluntary Compliance Update
  • FY 2012 Guidance Overview
  • EP Examination Update

4
EP Determinations Update
  • Changes to the EP Determination Letter Program
    described in Announcement 2011-82
  • Elimination of Demonstrations Regarding Coverage
    and Nondiscrimination Requirements
  • Form 5307 Applications Limited to Adopters of VS
    Plans Who Modify Pre-Approved Terms
  • Form 5300 Applications for MP and VS Plans
  • Changes are reflected in Revenue Procedure 2012-6

5
EP Determinations Update
  • 2nd Remedial Amendment Cycle for Pre-approved DC
    Plans began on 2/1/2011 (Revenue Procedure
    2011-49)
  • Release of Revenue Procedure for 403(b)
    Pre-Approved Plans?
  • Other Possible Pre-approved Programs
  • What about the Governmental Plan Submissions for
    the 2nd Cycle C beginning on 2/1/2013?

6
EP Voluntary Compliance Update
  • New VCP Submission Kit for DB pre-approved plans
    not timely amended by April 30, 2012
  • New video/audio clip on Tips for Completing Your
    VCP Submission on Appendix F Applications
  • Improving coordination with Determinations program

7
FY 2012 Guidance Overview
  • February 2012 - Lifetime Income Quartet
  • Revenue Ruling 2012-3 Clarifies rules for DC
    plans that offer lifetime income options
  • Revenue Ruling 2012-4 Clarifies rules that apply
    to rollovers from DC plan into DB plan
  • Proposed regulations under IRC 401(a)(9)
    Guidance for plans offering longevity annuity
    options
  • Proposed regulations under IRC 417 Partial
    lump sum payment from a DB plan

8
FY 2012 Guidance Overview
  • Governmental Plans
  • Released two items of proposed guidance
    consisting of
  • An announcement of proposed rulemaking (ANPRM)
  • A draft notice of proposed rulemaking containing
    proposed regulations
  • One item provides guidelines for determining
    whether a retirement plan is a governmental plan
    under section 414(d)
  • The other item provides guidelines for
    determining whether a plan of an Indian Tribal
    Government (ITG) is a governmental plan
  • Town hall and consultation meetings on the ANPRMs
    were held
  • Received over 2,000 comments

9
FY 2012 Guidance Overview
  • REG-153627-08 Proposed regulations related to
    filing the Form 8955-SSA, Annual Registration
    Statement Identifying Separated Participants With
    Deferred Vested Benefits
  • REG-113738-12 Proposed regulations that would
    provide guidance under the anti-cutback rules of
    IRC 411(d)(6) in relation to plans sponsored by
    employers in bankruptcy
  • Notice 2012-29 The IRS and Treasury announce
    their intent to issue guidance on the
    applicability of Treas. Reg. 1.401(a)-1(b) (the
    2007 Normal Retirement Age regulations) to IRC
    section 414(d) governmental plans

10
FY 2012 Guidance Overview
  • The Moving Ahead for Progress in the 21st Century
    Act (MAP-21)
  • Notice 2012-55 Determination of the 25-year
    segment rates that are applied to adjust the
    otherwise applicable 24-month average segment
    rates
  • Notice 2012-61 Provides guidance on the special
    rules relating to pension funding stabilization
    for single-employer defined benefit pension plans
  • Notice 2011-96
  • Provides a sample plan amendment that satisfies
    IRC 436 regarding limitations on the accrual
    and payment of benefits under certain underfunded
    single employer DB plans
  • Extends both the deadline to amend a plan to
    satisfy IRC 436 and the period during which
    such an amendment is eligible for relief from the
    anti-cutback requirements of IRC 411(d)(6)

11
EP Examination Update
  • 401(k) Electronic Compliance Check Questionnaire
    Project
  • Published an interim report highlighting trends
    and other information in February 2012
  • 86 of plans use a pre-approved plan document
  • 23 of plan sponsors requested a determination
    letter from the IRS
  • 68 of plans provide matching contributions
  • The IRS continues to use the questionnaire data
  • to enhance compliance strategies
  • to improve the Employee Plans Compliance
    Resolution System, and
  • to improve guidance and outreach products, such
    as the web-based 401(k) Fix-It Guide

12
EP Examination Update
  • International
  • Continued expanding the focus of the Employee
    Plan Team Audit (EPTA) program to large employee
    plan cases with multinational issues
  • Worked with Puerto Rico and the Virgin Islands on
    dual jurisdiction audits and voluntary compliance
    efforts
  • Emerging Issues and Abusive Transactions
  • Continued work on tools and resources to address
    hard-to-value assets in retirement plans
  • Developed and refined resources that aid in the
    identification of abusive and promotional schemes
  • Coordinated with CI on promoter investigation
    issues

13
EP Examination Update
  • Employee Plans Compliance Unit (EPCU)
  • Final reports on many completed projects will be
    posted on the IRS website
  • Leased Employees
  • Domestic Trust
  • Foreign Distributions
  • SEP
  • Adverse Accountants Opinions
  • 412(i)
  • Qualifying Employer Securities
  • New projects and planned projects
  • Project verifying single employer DB plan
    compliance with PPA 2006 benefit restrictions
  • The annual recertification of non-bank trustees
    and custodians
  • An ineligible employer project related to 403(b)
    plans
  • Final returns filed with reported assets
  • Nonqualified 401(k) plans

14
Additional Resources
  • Visit our Web site on a regular basis
    www.irs.gov/ep
  • E-mail your questions to RetirementPlanQuestions_at_
    irs.gov
  • Call us _at_ (877) 829-5500 with your questions
  • Subscribe and read our Newsletters
  • Retirement News for Employers
  • Employee Plans News
  • Your feedback and comments are appreciated
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