The Internal Revenue Service (“IRS”) has announced a pilot program that begins this month in which they will send letters to employers letting them know that their retirement plan has been selected for examination.
Under this new program, employers who receive the pre-examination notice will have a 90-day window to review their retirement plan’s documents and operations to see if they meet tax law requirements and notify the IRS. Employers who don’t respond within 90 days will be contacted by the IRS to schedule an examination.
In the March 7, 2018 edition of the blog, we reported that as a result of a change in the 2017 tax legislation relating to the calculation of the cost of living adjustment to the annual dollar limit on contributions to a health savings account (“HSA”), the Internal Revenue Service (“IRS”) had announced that the maximum amount that may be contributed for 2018 to an HSA by an individual who has family coverage under a high deductible health plan was being reduced from $6,900 to $6,850.
Buried in the December 2017 tax legislation is a provision that changes the method that the Internal Revenue Service (“IRS”) uses to determine cost of living adjustments to annual dollar limits applicable to health plans and some other benefits.