The IRS recently released Revenue Procedure 2015-28, which presents three new methods for correcting automated enrollment and elective deferral failures in 401(k) and 403(b) plans. This is an update to its Employee Plans Compliance Resolution System (EPCRS).

Federal law sets eligibility requirements for when employees can begin participating in an employer’s plan. In general, a plan may require that employees be at least 21 years old and complete a year of service before they are eligible.

On March 19, 2015, the Department of Labor (DOL) issued a rule amending the annual timing requirements for the delivery of the participant-level fee disclosures required under the DOL’s 404(a)(5) regulations. This new rule allows annual participant fee disclosures to be distributed within 14 months of the prior annual disclosure, instead of within 12 months.

Catch up on the latest developments in the retirement plan industry.

As a plan sponsor, you are not required to offer plan loans. Many employers make this feature available, however, to encourage participation. The reasoning is that if your employees - particularly younger, lower paid employees - know they can access the money in their plan accounts, they’ll be more comfortable contributing to your plan.

Catch up on the latest developments in the retirement plan industry.

The April 2, 2015, edition of the IRS newsletter for plan sponsors (Employer Plan News) contained an important reminder: Plan sponsors that permit hardship distributions or participant loans should review their current practices to ensure they are operating in compliance with IRS requirements.

On March 27, 2015, the IRS published Revenue Procedure 2015-27. The new guidance revises certain correction methods under the Employee Plans Compliance Resolution System (EPCRS) and makes changes to Revenue Procedure 2013-12, the current version of EPCRS.