Not All Retirement Plans Must Be Amended for Windsor

The Internal Revenue Service (IRS) has released guidance on the treatment of marriages of same-gender couples with regard to retirement plans.

IRS Notice 2014-19 provides further instruction for qualified retirement plans about the implications of the U.S. Supreme Court’s decision in United States v. Windsor. Specifically, the notice:

  • Gives examples of Internal Revenue Code requirements under which the marital status of the participants is relevant to the payment of benefits;
  • Provides guidance about how to satisfy those requirements in light of Windsorand Revenue Ruling 2013-17; and
  • Describes when retirement plans must be amended to comply with Windsor, Revenue Ruling 2013-17, and IRS Notice 2014-19.

After the Windsor decision, the IRS issued Revenue Ruling 2013-17 (see “Same-Sex Marriages Recognized for Tax Purposes”), which says married same-gender couples are treated as married for all federal tax purposes where marriage is a factor, if the couple is lawfully married under the laws of: one of the 50 states; the District of Columbia; a U.S. territory; or a foreign jurisdiction. The new Notice 2014-19 gives additional guidance about how qualified retirement plans should treat the marriages of same-sex couples.

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Notice 2014-19 calls for a retirement plan to be amended if its plan provisions are inconsistent with the Windsor decision. For instance, if its terms are inconsistent with either Windsor or Revenue Ruling 2013-17, a plan must be amended if it defines “spouse” by reference to Section 3 of Defense of Marriage Act (DOMA), or only as a person of the opposite sex.

According to the IRS, not all plans need to be amended in order to be in compliance. An amendment generally is not required if a plan’s terms are not inconsistent with Windsor or with Revenue Ruling 2013-17.

The IRS notes in the new notice that where amendments are required, plan must adopt them by the later of December 31, 2014, or the applicable date under the IRS’ general amendment guidance for qualified retirement plans, Revenue Procedure 2007-44.

A copy of IRS Notice 2014-19 can be downloaded here.

Retirement Revolution Integrates ‘SmartPlan’ Solution

Recordkeeping and custodial services provider Retirement Revolution added vWise’s SmartPlan Enterprise solution to its retirement plan product offerings.

Retirement Revolution offers recordkeeping and asset custody services to registered investment advisers (RIA), third-party administrators (TPAs) and their plan sponsor clients. The SmartPlan Enterprise solution from vWise seeks to provide the benefits of a personal financial adviser to help organizations cut costs while increasing both plan enrollment and participant contribution levels.

“For today’s connected work force, SmartPlan Enterprise provides those benefits of a personal financial professional anywhere, anytime, through a PC, a Mac, or virtually any mobile device,” says Donna Ross, president of Retirement Revolution, which is headquartered in Irvine, California.

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Once the SmartPlan application is launched, the software’s virtual hosts engage and educate plan participants through video-based presentations. The system also guides investors through a customized overview of their specific plan, providing various investment information and decisionmaking support.

Ross says Retirement Revolution hopes the integration of the SmartPlan solution will allow sponsor clients to better engage, educate and assist plan participants without substantially increasing plan expenses.  

“The breadth of Retirement Revolution data passed into the SmartPlan experience ensures participant plan details are presented in a highly engaging format, while keeping TPA workflows firmly in mind,” explains Tony Mingo, vWise president. “Plans established in the Retirement Revolution [system] are automatically established in the vWise SmartPlan system, delivering SmartPlan dynamic video content and rich media messaging directly to the plan sponsor’s busy population of employees, without Retirement Revolution clients lifting an additional finger.”

For participants, SmartPlan Enterprise serves as an online resource center, enabling them to learn about and manage their plans, change their investments, and control contribution rates through virtually any device.

Additionally, because SmartPlan Enterprise software will be launched within the Retirement Revolution system, each participant’s experience will be personalized, and all choices made through the system will be immediately updated in the company’s database.

More information is available here.

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