New Tax Bill – Pension Parts

The text of the RETIREMENT, SAVINGS, AND OTHER TAX RELIEF ACT OF 2018 came out late yesterday and here are the excerpts most pertinent to my (and possibly your) job.

Sec. 302. Rules relating to election of safe harbor 401(k) status.
Limitation of annual safe harbor notice to matching contribution plans.

Sec. 304. Repeal of maximum age for traditional IRA contributions.

Sec. 308. Clarification of retirement income account rules relating to church-controlled organizations.

Sec. 312. Exemption from required minimum distribution rules for individuals with certain account balances.
If on the last day of any calendar year the aggregate value of an employee’s entire interest under all applicable eligible retirement plans does not exceed $50,000, then the requirements of subparagraph (A) with respect to any distribution relating to such year shall not apply with respect to such employee.

Sec. 321. Plan adopted by filing due date for year may be treated as in effect as of close of year.
If an employer adopts a stock bonus, pension, profit-sharing, or annuity plan after the close of a taxable year but before the time prescribed by law for filing the employer’s return of tax for the taxable year (including extensions thereof), the employer may elect to treat the plan as having been adopted as of the last day of the taxable year.

Sec. 322. Modification of nondiscrimination rules to protect older, longer service participants.

Sec. 325. Modification of PBGC premiums for CSEC plans.
Looks like lower premiums.

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