A new era for the administration of qualified plans
Article Abstract:
The IRS Employee Plans Compliance Resolution System is a consolidated voluntary correction program that features a number of methodologies that plan sponsors can use to correct their qualified retirement plans. The system supports the creation of steps designed to make sure that plans are managed according to tax qualification requirements. It also requires the maintenance of plan documents and accommodates voluntary compliance through limiting fees favored by the Service. Moreover, the system integrates guidelines for the implementation of sanctions for qualification failures on audit. These include plan document failures, operational failures and demographic failures. It also features options for sponsors to correct a qualification failure through Administrative Policy Regarding Self-Correction.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1998
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Transition relief for SIMPLE plans that begin January 1
Article Abstract:
Ann. 96-112 provides that savings incentive match plans for employees (SIMPLE) that begin Jan. 1, 1997 are allowed to commence the 60-day period for employees to election salary reduction contributions on that day. Sec. 408(p)(5)(C) holds that qualified employees may elect to take part in the SIMPLE scheme during a continuous 60-day period prior to Jan. 1 of any year. Ann. 96-112 explains that the IRS provides relief from the 60-day requirement for plans that start on Jan. 1, 1997. The election period for these plans may start as late as Jan. 1, 1997, creating a situation where the election period is the same as the initial period of the salary reduction contributions. The election period may also be any other 60-day period that commence on any date between NOv. 2, 1996 and Jan. 1, 1997.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1996
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Nondiscrimination tests for 401(k) plans contained in new Regs
Article Abstract:
New requirements for qualified plans that permit before-tax or after-tax employee contributions, or that include matching employer contributions have been set forth by the Tax Reform Act of 1986. IRS regulations for nondiscrimination tests and rules on one-time elections for cash-or-deferred plans are reviewed; methods by which excess contributions and deferrals may be corrected, and specifications for treating re-characterized contributions are also presented.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1988
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