IRS provides guidance and forms on SIMPLE plans

Article Abstract:

The IRS has release a revenue procedure, a notice and a form to assist small businesses in implementing the SIMPLE plans established under the Small Business Job Protection Act of 1996. Employers with 100 or fewer employees earning at least $5,000 per year are eligible to establish the SIMPLE 401(k) or individual retirement account plans. The notice issued provides a model plan amendment that can be used to convert a plan into a SIMPLE plan. The IRS has also provide transition rules, and Form 5304-SIMPLE can be used as a model plan document.

Retirement Benefits, Compensation and benefits, Small business, Simplified employee pensions

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Notice 98-2 provides guidance on taxation of annuities from qualified plans

Article Abstract:

The IRS issued Notice 98-2 which explains apportionment of annuity payments from qualified employee benefit plans and replaces Notice 88-118 after changes made by the Taxpayer Relief Act of 1997 and the Small Business Job Protection Act of 1996. The notice describes how to apportion the taxable and nontaxable amounts of specified payments under IRC sections 401(a), 403(a), and 403(b) according to the simplified section 72(d)(1) method. The notice also covers initial lump-sum distributions under section 72(e).

Annuities

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IRS allows participant waiver of 30-day notice for distributions

Article Abstract:

The IRS continues to change various regulations to conform to the Unemployment Compensation Amendments of 1992. These regulations concern the time period allowed for giving IRC 402(f)'s written explanation of direct rollover provisions and the time period for meeting IRC 411(a)(11)'s consent requirements. The IRC 411(a)(11) time period has been relaxed. There is a 90-day period for satisfying consent requirements under IRC 411(a)(11).

Rollovers (Finance)

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