After 40 years of wandering, 403(B) rules changed

Article Abstract:

The Internal Revenue Service ( IRS) issued new proposed and temporary rules under 403(b) which makes obsolete many revenue rulings, notices and guidance dating back to 1964. The new rules include compliance of plans with nondiscrimination provisions for contributions, benefits, and coverage. The proposals are considered for adoption for the concerned school districts and other not -for- profit organizations and have been put up on the IRS website.

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IRS announces new voluntary compliance program

Article Abstract:

The IRS has revealed its new voluntary compliance program wherein plan sponsors may determine and revise operational problems and acquire a compliance statement from the IRS on how to address the problems. The IRS will not initiate plan disqualification and related penalties. Plan sponsors can correct the operational problems without subsequent tax consequences to employees and without the imposition of burdensome penalties on the employer.

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Retirement plan compliance and you

Article Abstract:

Nonprofit institutions face the bigger challenge of complying with federal tax laws being imposed by the Internal Revenue Service (IRS). The IRS is examining items such as compensation, general benefits, research grants, tax-exempt financing and unrelated business income. The Tax Reform Act of 1986 tightens the rules qualifying nonprofit institutions' retirement plans for favorable tax treatment.

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