Pension Plan Limitations for 2005
The Internal Revenue Code requires the Commissioner to make annual adjustments to the dollar limitations on benefits and contributions under qualified retirement plans. The IRS has announced cost-of-living adjustments applicable to dollar limitations for pension plans and other items for Tax Year 2005. Many of the pension plan limitations will change for 2005, the increase in the cost-of-living index having met the statutory thresholds that trigger their adjustment.

Discuss this news item in the PayPerShop Forum

...back to 21 October 2004


Further information:
www.irs.gov/newsroom/article/0,,id=114714,00.html

Employee Plan News
The Fall 2004 edition of Employee Plans News is now available.

Discuss this news item in the PayPerShop Forum

...back to 30 September 2004


Further information:
www.irs.gov/pub/irs-tege/fall04.pdf

Annual Return/Report of Employee Benefit Plans
The IRS has provided additional instructions for Line 8c on the 2003 Schedule B of Form 5500 Annual Return/Report of Employee Benefit Plans. Because many plan sponsors have had difficulty reporting the data required by line 8c of the 2003 Schedule B, this announcement is intended to provide flexible options to comply with existing reporting requirements. However, the announcement is not a request for new data and does not contain a new reporting requirement. Therefore, if plans have already filed under existing published instructions, there is no further filing requirement.

Discuss this news item in the PayPerShop Forum

...back to 30 September 2004


Further information:
www.irs.gov/pub/irs-drop/a-04-80.pdf

New IRS retirement newsletter for employers
The IRS is publishing a new periodic newsletter to help small business owners ensure that their plans stay compliant. Each edition of the newsletter will address the special concerns of small businesses in relation to the plans they maintain for their employees. The debut issue, scheduled for release the week of May 17, contains articles on retirement issues for re-employed veterans, new products such as a trouble-shooter for plan administrators, and a calendar of events noting filing deadlines, seminars and more.

To support employers further, the IRS is also providing a suite of retirement-plan "Check-Ups". Business owners are encouraged to review one of three Check-Ups — for SIMPLE IRA, SEP or SARSEP retirement plans — which are found on the Retirement Plans page on the IRS website. Each Check-Up is geared to one of these IRA-based retirement plans commonly operated by small businesses.

Discuss this news item in the PayPerShop Forum

...back to 20 May 2004


Further information:
www.irs.gov/newsroom/article/0,,id=123294,00.html
www.irs.gov/retirement/article/0,,id=117534,00.html
www.irs.gov/retirement/article/0,,id=122823,00.html
www.irs.gov/retirement/index.html

Retirement plans
The latest issue of the IRS' Employee Plan News is available. It includes articles on

• retirement plan offers that sound too good to be true
• request for comments on proposed changes to the electronic filing of employee benefit plans annual reports
• proposed rule on the automatic rollover of distributions into individual retirement plans
• clarification on where and when audits may take place.

Further information:
www.irs.gov/retirement/article/0,,id=96731,00.html
www.irs.gov/pub/irs-tege/spr04.pdf
...back to 25 March 2004

Abusive Life Insurance Policies in Retirement Plans
The Treasury Department and the IRS have issued guidance to shut down abusive transactions involving specially designed life insurance policies in retirement plans, section "412(i) plans." The guidance designates certain arrangements as "listed transactions" for tax-shelter reporting purposes.

The guidance states that

• any life insurance contract transferred from an employer or a tax-qualified plan to an employee must be taxed at its full fair market value
• an employer cannot buy excessive life insurance in order to claim large tax deductions
• a section 412(i) plan cannot use differences in life insurance contracts to discriminate in favor of highly paid employees.

Further information:
www.irs.gov/newsroom/article/0,,id=120409,00.html
www.irs.gov/pub/irs-drop/rr-04-20.pdf
www.irs.gov/pub/irs-drop/rr-04-21.pdf
www.irs.gov/pub/irs-drop/rp-04-16.pdf
www.treas.gov/press/releases/reports/402reg.pdf
...back to 19 February 2004

Retirement plans
The latest issue of the IRS' Employee Plan News is available. It includes articles on

• conducting audits at a taxpayer's place of business
• the "new" 401(k) plan
• employers' obligations to veterans
• recent employee plans published guidance
• changes to Form 5500 Annual Return/Report of Employee Benefit Plan

Further information:
www.irs.gov/retirement/article/0,,id=96731,00.html
www.irs.gov/pub/irs-tege/win04.pdf
...back to 25 December 2003

Pension Plan Limitations for 2004
The Internal Revenue Code requires the Commissioner to make annual adjustments to the dollar limitations on benefits and contributions under qualified retirement plans. The IRS has announced cost-of-living adjustments applicable to dollar limitations for pension plans and other items for Tax Year 2004. Many of the pension plan limitations will change for 2004, the increase in the cost-of-living index having met the statutory thresholds that trigger their adjustment.

Further information:
www.irs.gov/newsroom/article/0,,id=114714,00.html
...back to 31 October 2003