Compliance September 30, 2016

403(b) Requirements Will Be Covered in IRS Webcast

Attendees will learn about hours of service; changes in employee status; student participation; and other 403(b) rules.
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The Internal Revenue Service (IRS) is hosting a free webcast about clarifying the universal availability and other 403(b) retirement plan requirements.

Attendees will learn about:

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  • Hours of service;
  • Changes in employee status;
  • Student participation; and
  • Other 403(b) rules.

The webcast will provide answers to many of the questions the IRS received for the May 19, 2016, Understanding the Universal Availability Rules in a 403(b) Retirement Plan webcast. The IRS encourages individuals to review the prior webcast before attending this one.

The webcast will be held October 27, at 2 p.m. (Eastern). Registration is here.

Compliance September 30, 2016

Updates to Correction Program Included in IRS Revenue Procedure

The revenue procedure updates the comprehensive system of correction programs for sponsors of retirement plans that are intended to satisfy the requirements of the Internal Revenue Code, but that have not met these requirements for a period of time.
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The Internal Revenue Service (IRS) has issued Revenue Procedure 2016-51, which updates the comprehensive system of correction programs for sponsors of retirement plans that are intended to satisfy the requirements of Sections 401(a), 403(a), 403(b), 408(k), or 408(p) of the Internal Revenue Code, but that have not met these requirements for a period of time.

The revenue procedure modifies and supersedes Revenue Procedure 2013-12, the prior consolidated statement of the correction programs under the Employee Plans Compliance Resolution System (EPCRS). It also incorporates certain modifications set forth in Revenue Procedure 2015-27, correction of overpayments and certain other topics, and Revenue Procedure 2015-28, correction of failures with respect to automatic contribution features and encouraging the early correction of employee elective deferral failures. In addition, this revenue procedure incorporates modifications to Revenue Procedure 2013-12 set forth in Revenue Procedure 2016-8, fees for voluntary compliance program (VCP) submissions generally moved to annual Employee Plans (EP) revenue procedure on user fees.                                                        

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The 119-page document addresses:

  • Modifications relating to changes in the determination letter program;
  • Changes to the Audit Closing Agreement Program (Audit CAP); and
  • Modifications relating to user fees.

The IRS invites comments on the revenue procedure, which will be published in Internal Revenue Bulletin (IRB): 2016-42, dated October 17, 2016.

The revenue procedure is effective January 1, 2017.

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