Miscellaneous Changes

Additional changes that help reduce administrative burdenand encourage savings:

  • Repeals the 401(k) multiple use test.

  • Employers that sponsor both a 401(k) and a 403(b) plan may exclude employees that are eligible to make deferrals under the 403(b) planfrom the 401(k)/(m) coverage test if certain conditions exist.

  • Reduces the deferral suspension period following a hardship withdrawal from 12 months to 6 months. A hardship withdrawal is not eligible for rollover.

  • Directs the ITS to update the life expectancy tables used to determine minimum required distributions.

  • Allows plans to make loans to owner-employees of S corporations, partnerships, and sole proprietorships.

  • Waives the IRS user fee for a determination letter for any retirement plan maintained by an employer with 100 or less employees during the first five years of a plan's existence.

  • Clarifies that employer provided individual retirement and financial planning services are treated as non-taxable ffringe benefits if the services are available to all eligible employees on the same terms.