SSA, IRS Provide Timely Reminders in Joint Newsletter

The Social Security Administration and the IRS have issued the Fall 2015 edition of their joint online newsletter, the SSA/IRS Reporter, This edition includes information on issues related to retirement plans and compliance.

The newsletter provides links to information on the following recent retirement-related developments:

 

• The extension of certain retirement plan or IRA deadlines as disaster relief for retirement plans and IRAs;

• The requirement that employers adopt new pre-approved defined contribution plans by April 30, 2016;

• The fact that the IRS Employee Plans Division will no longer accept technical questions through email or from Customer Account Services; and

• A reminder that starting in 2017, the IRS will eliminate the staggered remedial amendment cycles and limit the scope of the determination letter program for individually designed plans.

The newsletter includes the following year-end reminders concerning IRAs: `

• Review the 2015 IRA contribution and deduction limits.

• Those who have exceeded the 2015 IRA contribution limit, should withdraw the excess contributions from their accounts by the due date of their 2015 tax return (including extensions). Otherwise, they must pay a 6% tax each year on the excess amounts remaining in your account.

• Those age 70½ or older must take a required minimum distribution (RMD) from a traditional, SEP and SIMPLE IRAs by Dec. 31, 2015 (April 1, 2016, for those who turned 70½ in 2015).