In an effort to reduce administrative burdens, the Treasury Department and Internal Revenue Service released Revenue Ruling 2014-9, which provides procedures a plan administrator can use to conclude whether a potential rollover contribution is valid.
Ice Miller Attorney Craig Burke said the new procedure will make it easier for plan administrators to deal with incoming rollovers, and it will enhance individual market mobility.
The ruling, released April 3, provides guidance for plan administrators to access the EFAST2 database maintained by the Department of Labor to search for a sending plan's recent Form 5500, Annual Return/Report of Employee Benefit Plan, or Form 5500-SF, Short Form Annual Return/Report of Small Employee Benefit Plan.
Burke said it is also clear that Treasury and the IRS realize they have resources available that could help streamline and simplify processes to allow for greater mobility and the next possible step would be for the agencies to amend related regulations so that they match what has been released.
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