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  • Revisions to the Employee Plans Determination Letter Program

     The IRS has announced important changes to the Employee Plans determination letter program for qualified retirement plans.

    Based on the need of the IRS to more efficiently direct its limited resources, effective January 1, 2017, these changes will eliminate the staggered 5-year determination letter remedial amendment cycles for individually designed plans and will limit the scope of
    the determination letter program for individually designed plans to initial plan qualification and qualification upon plan termination.

    For more information, please contact your M&J ERISA attorney or call 617-310-6567.
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  • Itís Up to Plan Sponsors to Track Loans, Hardship Distributions

     Even if you use a third party administrator (TPA) to handle participant transactions, youíre still ultimately responsible for the proper administration of your retirement plan. Make sure youíre keeping up with the recordkeeping requirements.

    The plan sponsor must obtain and keep hardship distribution records. Failure to have these records available for examination is a qualification failure that should be corrected using the Employee Plans Compliance Resolution System (EPCRS). A plan sponsor should also retain specific records, in paper or electronic format, for each plan loan granted to a participant.

    For more information, please contact your M&J ERISA attorney or call 617-310-6567.
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  • Massachusetts Paid Sick Time Law

     Effective July 1, 2015, Massachusetts employers must allow employees to accrue and use up to 40 hours of sick time per calendar year.

    For employers with 11+ employees (including part time and temporary employees), the sick time must be paid. For smaller employers, the sick time can be unpaid.

    For more information about accrual of sick time, permissible uses of sick time, or procedural requirements, please contact your regular M&J attorney or call (617) 451-1500.
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  • Scrutiny of Large IRAs

     The GAO recently completed a study of individual retirement accounts (IRAs) to measure IRA balances and assess IRS enforcement of IRA laws. Congress is re-examining retirement tax incentives as part of tax reform, and GAO made several recommendations to enable the IRS "to detect and pursue noncompliance associated with undervalued assets sheltered in IRAs and prohibited transactions."
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  • IRS Rollover Limits

     Earlier this year, the IRS announced a new one-per-year limit on IRA rollovers. Today, the IRS issued guidance to clarify how 2014 rollovers will be treated.

    A distribution from an IRA received during 2014 and properly rolled over to another IRA will have no impact on any distributions and rollovers during 2015. This will give IRA owners a "fresh start" in 2015.

    As before, Roth conversions (rollovers from traditional IRAs to Roth IRAs), rollovers between qualified plans and IRAs, and trustee-to-trustee transfers--direct transfers of assets from one IRA trustee to another--are not subject to the one-per-year limit and are disregarded in applying the limit to other rollovers.
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