Posts Categorized: Qualified Plans

IRS Updates VCP User Fees

in Fiduciary Issues, IRS Examinations, Qualified Plans, Retirement Plans

By: Sterling Perkinson The IRS has revised its user fees for the Voluntary Correction Program (VCP) effective for submissions made on or after January 2, 2018.  VCP is an IRS program that allows plan sponsors to correct failures involving a qualified plan or a 403(b) plan with IRS approval. The new VCP fees are based on the net assets of the plan as reported on its prior Form 5500, as follows:   Net Assets VCP Fee $0-$500,000 $1,500 Over $500,000 to $10,000,000 $3,000 Over $10,000,000 $3,500   Prior to this change, a plan’s VCP fees were determined based on the… Continue Reading

Final Tax Legislation – Provisions Affecting 401(k) Plans

in Qualified Plans, Retirement Plans, Tax Issues

By Sterling Perkinson and Harrison Taylor While tax reform proposals considered by Congress were rumored to include major changes like significantly lower limits on pre-tax contributions to 401(k) plans, the separate bills passed by the House and Senate included more modest changes for retirement plans. (See our prior blog posts on these bills here and here.) The final tax legislation passed under reconciliation rules left out most of these changes, but retained two provisions impacting 401(k) plans: Extended Rollover Periods for Plan Loan Offsets. The terms of 401(k) plan loans generally provide for the loan to come due in full… Continue Reading