DOL Releases Lifetime Income Disclosure Rule
The DOL announced an interim final rule that prescribes how retirement plans are to provide lifetime income information to savers.
New Fees in 2021 for Certain Determination and Letter Ruling Requests
In Announcement 2020-14, the IRS provides advance notice of fee increases for certain determination applications, effective January 4, 2021.
SEC Proposal to Modernize Reports and Disclosures
The SEC has announced a proposal to modify and modernize the disclosure framework of mutual funds and exchange-traded funds that is intended to better serve the needs of retail investors.
IRS Guidance for Some DB Plans, Distribution Notices
The IRS has released two Notices with more guidance for certain provisions under the CARES and SECURE Acts.
Legislation Introduced to Expand HSA Access
Legislation is introduced for Health Savings Accounts for All Act of 2020 (S.4367) to expand access and reduce restrictions on HSAs.
Senate Bill Introduced to Provide COBRA Subsidization
Senators introduce the Continuous Health Coverage for Workers Act to provide premium assistance for COBRA continuation coverage for individuals whose jobs have been impacted by COVID-19.
Senate Releases Details of Next Round of Pandemic Relief
The U.S. Senate released details on July 27 of the proposed Health, Economic Assistance, Liability, and Schools (HEALS) Act.
IRS deadline relief for storm and earthquake victims
The IRS grants extensions for completion of certain tax-related acts to victims of severe storms in Michigan and an earthquake and after-shocks in Utah.
PBGC COVID-19-Related Compliance FAQs for DB Plans
Pension Benefit Guaranty Corporation (PBGC) (FAQ) compliance guidance for Defined Benefit (DB) plan sponsors dealing with the coronavirus (COVID-19) pandemic.
House Bill Would Extend, Expand Tax Benefits for CRDs
Rep. Sean Maloney (D-NY) has introduced H.R. 7645, legislation that would extend the time period for taxpayers to withdraw coronavirus-related distributions (CRDs) from retirement savings arrangements and receive the special tax benefits that CRDs provide. Certain withdrawals could be tax-free under the legislation.
CRDs, as defined in the Coronavirus Aid, Relief and Economic Security (CARES) Act, are eligible for the following tax benefits for withdrawn amounts up to $100,000 (currently, only for withdrawals in 2020).
- Three-year taxation on amounts withdrawn
- Exemption from the 10 percent excise tax for early (pre-59½) distributions
- The option to repay such withdrawn amounts within three years
Included in the bill is expected to be a provision that would make CRDs tax-free if the taxpayer qualifies as a first-time home buyer. “Expected,” because neither bill text nor a summary is available at this time. Details of legislative intent are being inferred from the bill’s description at the official congressional web site:
“To extend the time period for making coronavirus-related distributions from retirement plans and to provide an exclusion from gross income of coronavirus-related distributions which are first-time homebuyer distributions.”
H.R. 7645 has been referred to the House Ways and Means Committee.
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