Important 403(b)/457(b) News
Contribution Limits Increase for 2015 (10/23/2014)
The IRS has published Pension Plan Limitations for 2015. Click here to review the IRS's news release. Please visit CCC's Contribution Limits page for additional information.
Waddell and Reed Fair Fund Settlement (8/19/2014)
Some Waddell and Reed investment account holders recently received checks from the Waddell and Reed Fair Fund Administrator as part of a settlement agreement with the SEC stemming from account activity between December 1998 through October 2003. It is imperative that recipients of these checks visit the settlement administrator's website (noted in the letter accompanying the check) to learn more about this settlement, options concerning this settlement, and the contact information for the settlement administrator.
ING is rebranding to Voya Financial in 2014 (8/13/2014)
ING released a statement concerning their intent to rebrand their products to the name Voya Financial. By September 1, 2014, all ING entities subject to the change will begin using the Voya name (this will include ING Life Insurance and Annuities Company and ING USA Annuities). The most recent press release regarding change is available by clicking here and an earlier release is available here. Voya also has a webpage describing the rebranding at www.voya.com. (Please note: this change will NOT effect ING ReliaStar.)
Aviva is rebranding to Athene in 2014 (3/3/2014)
Aviva Life and Annuity Company has changed its name to Athene Annuity and Life Company effective 3/3/2014. The press release regarding change is available by clicking here.
Contribution Limits for 2014 (10/31/2013)
The IRS has published Pension Plan Limitations for 2014. Click here to review the IRS's news release. Please visit CCC's Contribution Limits page for additional information.
The Supreme Court Rules the Defense of Marriage Act (DOMA) Unconstitutional (6/26/2013)
On June 26th, 2013 the Supreme Court rules the Defense of Marriage Act (DOMA) unconstitutional in the case of the United States v. Windsor. This ruling has important impacts on qualified plans. The American Society of Pension Professionals and Actuaries (ASPPA) released an article on July 2, 2013 highlighting the impacts of this ruling, titled "Repeal of DOMA Impacts Qualified Plans".
403(b) Pre-Approved Plan Rules and Model Language Published by IRS (3/28/2013)
March 28, 2013, marked the long-awaited and much-anticipated publication of IRS procedures for submission, review, and approval of 403(b) Pre-Approved (Prototype and Volume Submitter) Plans. Submissions will be accepted by the IRS beginning June 28, 2013, and CCC intends to make a submission on behalf of its clients. However, the IRS will not begin reviewing submissions before the submission window closes on April 30, 2014, and eligible employers will not have to adopt pre-approved plans until at least one year after the IRS has ruled on all applications that it received during the submission window (so, no earlier than April 30, 2015). The Pre-Approved Plan rules appear in Revenue Procedure 2013-22 and the Model Language appears in an IRS Listing of Required Modifications (LRM0313-2).
Employee Plans Compliance Resolution System (EPCRS) Procedures Updated (1/4/2013)
The updated EPCRS revenue procedure, Revenue Procedure 2013-12, is now
available. The new procedure updates and expands the Employee Plans
Compliance Resolution System (EPCRS), the comprehensive system of correction
programs for sponsors of retirement plans that have failed to meet one or
more requirements of the Internal Revenue Code.
A summary is posted here.
Fiscal Cliff Budget Deal Impacts Roth Conversions for 403(b) and 457(b)
The newly passed American Taxpayer Relief Act of 2012 contains provisions
related to Roth accounts. Currently, employee deferral plans, like 401(k),
403(b) or 457(b) plans, may have a Roth feature to allow employees to
contribute to such plans on an after-tax basis with earnings thereon
tax-free when distributed. Plans currently may allow employees to convert
their traditional (pre-tax) accounts to a Roth account with respect to
amounts for which an employee can elect a distribution. The new law allows
employees to convert any traditional (pre-tax) amounts within an employee
deferral plan into a Roth account, even if the employee cannot elect a
distribution of such amount. The amount so converted would be subject to
regular income tax in the year of conversion and the earnings thereon after
such conversion would be tax-free when distributed.
This has multiple implications for plan sponsors. As a plan sponsor, you
are not required to adopt the new Roth provisions and still have the
discretion about whether to make this part of your plan. If you do decide to
offer your employees this option, it will require a plan amendment. If you
already have a Roth provision in your plan, you should expect some interest
in adopting this relaxed rule allowing transfers without a triggering event.
If you don't have a Roth option in your plan, you may get interest to add
it. If you lack the Roth option and want to put one in place, please contact
CCC. The Treasury Department and the IRS are expected to issue technical
guidance about these Roth conversions including plan amendment requirements.
CCC will provide additional details as they become available.
Contribution Limits Increase for 2013 (10/18/2012)
The IRS has published Pension Plan Limitations for 2013. Click here to review the IRS COLA Increases for Dollar Limitations on Benefits and Contributions. Please visit CCC's Contribution Limits page for additional information.
To view older news items pertaining to 403(b) and 457(b) plans, please visit our Important 403(b)/457(b) News Archive.