IRS announces 2012 limits

IR-2011-103

• The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $16,500 to $17,000.
  
• The catch-up contribution limit for those aged 50 and over remains unchanged at $5,500.

Click on the link above for all the details.

CLASS pulled from Health Care Reform

The Community Living Assistance Services and Supports (CLASS) introduced as part of the Affordable Care Act has been removed from the menu of health care reform entrees.  CLASS was supposed to be a voluntary long term care plan in which individuals would enroll either directly or through their employer. The law required the Secretary of Health and Human Services to design a plan that would be actuarially solvent for at least 75years.  In a letter dated October 19, 2012 to John A. Boehner, HHS Secretary Sebelius concluded that after 19 months of study, it couldn't be done.

EBSA to re-propose rule on definition of fiduciary

On September 19, 2011 EBSA announced that it will repropose its rule on the definition of a fiduciary.

The proposed regulations issued in October 2010 elicited over 260 comment letters.  The press release indicated that "additional time ensures strongest possible protection for retirement savers, business owners".

The new proposed rule is expected to be issued early in 2012.

The press release can be found on EBSA's website.

IRS Retirement News for Employers

The IRS issued their Summer edition of Retirement News for Employers.  It is a free service offered by the IRS and generally presents a section on compliance errors, recent guidance as well as a DOL section.  It is a worth the read.  This issue includes topics such as 20% withholding, compensation errors and information on the LESE project (learn, educate, self-correct, enforce.

IRS releases summer issue of Retirement News for Employers

The IRS newsletter is always worth a read. This edition features articles covering

• avoiding compensation errors in retirement plans
• 20% withholding from retirement plan distributions
• a chat with Monika Templeman, Director of EP examinations
• DOL news and
• more

IRS extends deadline for Form 8928

Form 8928 must be filed by group health plans, plan sponsors or plan administrators who:

• fail to provide the required level of pediatric vaccine
• fail to comply with certain HIPAA requirements
• fail to make comparable Archer medical savings account contributions
• fail to make comparable HSA contributions 

Form 7004 must be filed to obtain the extension. This reporting requirement was effective January 1, 2010.

More information regarding Form 8928 can be found at the IRS website.

Summary of Benefit and Coverage proposed regulations released

PPACA required that a four page summary of benefits as well as a glossary of terms be provided to plan participants.  As noted in a previous post, the NAIC developed sample summaries.  Today, the government issued proposed regulations as well as "sub-regulatory" guidance and sample templates. The proposed rule is open to public comment for 60 days.

The regulations are effective March 23, 2012.