DOCUMENT UPDATE. Presented By: Christine LeBlanc

Transcription

1 DOCUMENT UPDATE Presented By: Christine LeBlanc

2 Agenda 403(b) Documents Welfare Documents Defined Benefit/Cash Balance Documents Post PPA Defined Contribution Documents Up Coming Enhancements

3 403(b) Documents New IRS pre approved documents now available Restatement deadline to get retroactive reliance is March 30, 2020 Retroactive effective dates as early as 1/1/2010 can be used Custom effective date and custom language attachments with retroactive effective dates

4 403(b) Documents New service provider attachment Approved vendors Un approved vendors Service providers Plan sponsor duties

5 403(b) Documents Restatement Deadline April 31, 2020 If document was amended timely for final regulations then plan may have retroactive reliance back to All provisions must be documented in some form Interim amendments Special effective date addendum

6 403(b) Documents 5 types ERISA for 501(c)(3) Organizations Non ERISA Deferral Only for 501(c)(3) Organizations Non ERISA for Governmental Organizations Non ERISA for Churches without RIA Non ERISA for Churches with RIA

7 403(b) Documents ERISA for 501(c)(3) Organizations Robust document intended to provide maximum flexibility Contribution Types Included deferrals pre tax and Roth voluntary after tax mandatory after tax and pre tax matching contributions non elective contributions rollover contributions

8 403(b) Documents ERISA for 501(c)(3) Organizations Other Provisions ACP Safe Harbor Auto Enrollment ACA, EACA, QACA Integrated, Age Weighted, and Cross Tested Non Elective Contributions

9 403(b) Documents ERISA for 501(c)(3) Organizations Testing Provisions Designed to be Universal Availability compliant All ERISA language included ACP testing elections included 410(b) failure language included

10 403(b) Documents Non ERISA 403(b) Deferral Only for 501(c)(3) Organizations Designed to be used by a 501(c)(3) organization that intends to meet the DOL safe harbor of limited employer involvement under 29 C.F.R. section (f) Contributions Types include Deferrals pre tax and Roth Voluntary after tax rollover contributions

11 403(b) Documents Non ERISA 403(b) Deferral Only for 501(c)(3) Organizations Does not include Matching or non elective contributions Safe harbor provisions Automatic enrollment Vesting provisions

12 403(b) Documents Non ERISA for Governmental and Church Employers Robust document intended to provide maximum flexibility Contribution Types Included deferrals pre tax and Roth voluntary after tax mandatory after tax and pre tax matching contributions non elective contributions rollover contributions

13 403(b) Documents Non ERISA for Governmental and Church Employers Other Provisions Auto Enrollment ACA Integrated Non Elective Contributions Not Included Safe Harbor Auto Enrollment EACA, QACA Age Weighted and Cross Tested Non Elective Contributions

14 403(b) Documents Non ERISA for Church Employers Steeple Church Qualified Church Controlled Employers Retirement Income Account Not subject to Universal Availability

15 Welfare Documents Section 125 Cafeteria Plan Premium Only Plan HRA QSHRA Transportation Plan Wrap Plan

16 Welfare Documents Section 125 Cafeteria Plan Adoption Agreement and Contract Versions Expanded to better accommodate multiple contribution types More easily integrates with plans that offer HSA compliant and non HSA compliant health plans

17 Welfare Documents Section 125 Cafeteria Plan Contribution Types Premium Conversion Account Flexible Spending Account General Purpose Health FSA Limited Purpose Health FSA (HSA Compatible) Post Deductible Health FSA (HSA Compatible) Dependent Care Assistance Plan Account Adoption Assistance Flexible Spending Account Health Savings Account Flexible Benefits Credits Purchase and/or Sale of PTO

18 Welfare Documents Premium Only Plans Health Dental Vision Short term Disability Long term Disability Accidental Death Other

19 Welfare Documents Health Reimbursement Arrangements Allows employer to reimburse employees for health related expenses Only employer contributions Document can specify eligibility Document can specify what expenses are covered Except for the Small Business HRA must be integrated with an ACA compliant health plan

20 Welfare Documents Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) Stand alone HRA if plan meets requirements Can be used by employees to purchase health plan on open market Fewer than 50 FTEs Does not sponsor a group health plan

21 Welfare Documents Transportation Plans Not an ERISA plan Allows for payment of transportation costs using either employee pre tax contributions or employer contributions Biking expenses, parking expenses, transit pass

22 Welfare Documents Wrap Plan Designed to Wrap ERISA plans under one umbrella plan to allow for a single Form 5500 filing Should only include ERISA welfare plans Not intended to be used to establish MEWAs Not intended to take the place of the underlying plan documents and contracts

23 Defined Benefit Plans IRS currently reviewing PPA versions of documents Anticipate release sometime in 2018 Most likely a two year restatement period Cash balance included in the filing for PPA Adoption Agreement and read thru versions Cash balance, defined benefit, and combo versions

24 Defined Contribution Documents Post PPA Submission Due to IRS in 2018 with release sometime in 2020 Deadline my change based on changes to pre approval program Remove prototype and volume submitter designation Standardized and Non Standardized Minor changes allowed Trust agreements will be separate documents and no longer approved by the IRS Submit suggestions to with Doc Suggestion as part of subject line

25 Upcoming Enhancements Document Batch Print Distribution Forms Update