TRA MAKES NEWS HAPPEN

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  CASE OF THE WEEK – Pension Distributions and Restricted Employees

  June 28, 2024 - When discussing benefit restriction rules for defined benefit plans with your clients, remember the significant restrictions that may apply to the High 25 Highly Compensated Employees (HCEs) in the plan. Affected individuals should collaborate with their plan administrators to explore potential exceptions and seek professional advice from a tax and/or legal advisor. Continue
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  CASE OF THE WEEK – What is the Abandoned Plan Program?

  June 21, 2024 - Explore the distribution options for benefits from an abandoned plan, considering if the plan's sponsor is in Chapter 7 bankruptcy and subject to new special rules or if general abandoned plan rules are applicable. Continue
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  CASE OF THE WEEK – What to Correct under the Voluntary Fiduciary Correction Program

  June 14, 2024 - The DOL's Voluntary Fiduciary Correction Program (VFCP) offers significant incentives and assistance for fiduciaries to self-correct ERISA violations. Plan officials can voluntarily rectify 19 specific prohibited transactions, with PTE 2002-51 providing IRS excise tax relief for six of these transactions. Continue
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  CASE OF THE WEEK – Railroad Retirement System Benefits

  June 7, 2024 - When clients have worked for both the railroad and under Social Security, understanding the Windfall Elimination Provision (WEP) is crucial. The WEP affects approximately 2.1 million Social Security beneficiaries, around 3% of the total, as of 2023. Of these, nearly 2.0 million are retired worker beneficiaries, roughly 4% of the retired-worker beneficiary population. This provision also impacts disabled worker beneficiaries and eligible family members. Continue