Retirement News

Setting Every Community Up for Retirement Enhancement (SECURE) Act

Posted on: 2/20/2020 4:21 PM

On December 20th, 2019, the Secure Act was signed into Law, a bill to help employers implement retirement plans for their employees. Please find below some of the many changes, affecting qualified retirement plans, brought about with this bill:• Increase of tax credit limit for small employer pension plan start-up costs: Existing tax credit of $500 for a plan’s start-up costs has been increased to as much as $5,000 per year for the first three years, encouraging small employers to adopt plans.… Read More

IRS Announces 2020 Retirement Plan Dollar Limits and Thresholds

Posted on: 11/7/2019 11:18 AM

The IRS has announced the following contribution limits for 2020: The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $19,000 to $19,500. The catch-up contribution limit for employees aged 50 and over who participate in these plans is increased from $6,000 to $6,500. IRS Notice:https://www.irs.gov/pub/irs-drop/n-19-59.pdf Lifetime Benefit Solutions, Inc. is not a law firm, has not reviewed t… Read More

IRS updates procedures for letter rulings, determination letters, and other guidance

Posted on: 12/27/2018 3:34 PM

The IRS has updated and restated its revenue procedures governing letter rulings, determination letters, and other guidance, including guidance about employee benefit plans. Rev. Proc. 2019-1 explains the forms of advice that the various IRS counsel offices provide and how taxpayers can request that advice. Relatively few changes have been made for 2019. The procedure can no longer be used to request waivers of the excise tax for failure to give timely notice of a significant reduction in the r… Read More

IRS proposes amendments to hardship distribution rules

Posted on: 11/15/2018 3:14 PM

IRS proposes amendments to 401(k) regulations that would affect the funds available for hardship distributions, the events that constitute qualifying hardships, and the standards used to determine whether a participant’s need could be relieved using other reasonably available resources. Lifetime Benefit Solutions, Inc. is not a law firm, has not reviewed that information for legal sufficiency, and does not give legal or tax advice. The sponsoring employer should have this information reviewed b… Read More

IRS announces 2019 dollar limits and thresholds for retirement plans

Posted on: 11/8/2018 3:10 PM

As outlined in IR 2018-211, (11/1/2018), IRS announced cost of living adjustments that apply to benefit plans for 2019. Elective deferral limit under Code Sec. 402(g); and Code Sec. 457(e); increased to $19,000. Code Sec. 415(b)(1)(A); defined benefit plan limitation increased to $225,000 and Code Sec. 415(c)(1)(A); defined contribution plan limitation increased to $56,000. Lifetime Benefit Solutions, Inc. is not a law firm, has not reviewed that information for legal sufficiency, and does not … Read More