Simple, Sep, and Sarsep Answer Book 2020 Edition

This comprehensive, authoritative volume provides up-to-date coverage of recent legislative and regulatory developments in simplified employee pension (SEP) plans and savings incentive match plans for employees (SIMPLEs). SIMPLE, SEP, and SARSEP Answer Book, 2020 Edition provides clear and concise guidance on the complex design, administration, and compliance issues that arise in connection with SIMPLEs, SEPs, and salary reduction SEPs (SARSEPs).

Highlights from the 2020 Edition include:

• Revised coverage of eligible automatic contribution arrangements.
• New discussion and examples of how Code Section 318 is used to determine who is a highly compensated employee or a key employee.
• Discussion of the increase in the Required Minimum Distribution (RMD) age (to age 72) that will affect individuals born after June 30, 1949.
• Examination of why the failure to remit employee contributions to an employee benefit plan may constitute a crime.
• Discussion of whether participation in a Voluntary Correction Program (VCP) could lead to a plan audit by the IRS.
• Discussion of the new credit for qualified start-up costs for small employers that include an automatic enrollment feature in a SIMPLE IRA.
• Updated coverage of the increased retirement plan start-up cost credit amounts.
• Expanded discussion of why SEP, SARSEP, and SIMPLE contributions, including any elective deferral payments paid during the tax year (regardless of the tax year of deductibility), are treated as part of the guaranteed payments for personal services so Form 1065 flows properly.
• Expanded discussion of what happens to uncorrected excess contributions in a SARSEP.
• Expanded discussion of the correction of excess SEP contributions that fail the 125 percent nondiscrimination test.
• Updated coverage of the submission procedure for VCP.
• Updated discussion of what happens if Code Section 415 limits are exceeded and what happens if the failure is not corrected.
• Update coverage of the saver's credit for low-income taxpayers.
• Discussion of recent events that may doom the EPCRS program and that could result in many more audits of SEPs and SIMPLE plans.
• Updated discussion of when the IRS will assist and employer or employee in determining whether the individual is an employee.
• Discussion of how a plan sponsor may authorize a representative to submit a VCP application. (See Q 17:26.)
• Revised coverage of the status of the DOL's revised definition of "fiduciary" rule.
• Discussion of the expanded definition of compensation for difficulty of care payments and for non-tuition fellowships and stipend payments.
• Examination of how the tax return due dates and revised extension periods will affect the establishment of a SEP for the prior year. The new due dates for making prior-year SEP and SIMPLE contributions are also discussed with revised charts.
• Updated discussion of the status of the Securities and Exchange Commission's attempt to regulate the delivery of investment advice by a broker-dealer.
• Discussion of the Rollover as Business Start-Ups (ROBS) Compliance Project addressing promoters that aggressively market ROBs arrangements using IRS favorable determination letters.
• Discussion of why the $57,000 limit under Code Section 415 is not prorated for an initial short plan year.
• Updated discussion on the use of electronic media.
• Updated discussion on combining SEP contributions with IRA contributions.
• Revised coverage of highly compensated employees with new examples of the ownership test and compensation test.
• Revised discussion of the eight contribution limits that may apply to a SEP plan.
• How the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) modified certain requirements for employer-provided retirement plans, IRAs, and other tax-favored savings accounts.

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Previous Edition: SIMPLE, SEP, and SARSEP Answer Book, 2019 Edition, ISBN 9781543813258¿