SECTION 8. EMPLOYEE — Internal Revenue Bulletin 2018-50

Statute or Regulation Act Postponed

Sec. 72(p)(2)(B) and (C), and A loan from a qualified employer plan to a participant in, or a beneficiary of, such Sec. 1.72(p)–1, Q&A–10 plan must be repaid in accordance with the timing requirements of section

72(p)(2)(B) and the level amortization requirement of section 72(p)(2)(C) (taking into account, if applicable, any cure period granted pursuant to § 1.72(p)–1, Q&A– 10(a)).

Sec. 72(t)(2)(A)(iv) To be eligible for the exception to the 10-percent additional tax on a distribution from a qualified retirement plan under section 72(t)(2)(A)(iv), the distribution must be part of a series of substantially equal periodic payments (not less frequently than annually) made over the employee’s life (or life expectancy) or the joint lives (or joint life expectancies) of the employee and his or her designated beneficiary.
Sec. 72(t)(2)(F), 72(t)(8)(A) To be eligible for the exception to the 10-percent additional tax on a distribution from an individual retirement plan (IRA) for a first-time home purchase under section 72(t)(2)(F), the distribution must be used by the individual before the close of the 120th day after the day on which such distribution is received to pay qualified acquisition costs with respect to a principal residence of a first-time homebuyer, or under certain circumstances, rolled into an IRA in accordance with section 408(d)(3).
Sec. 72(t)(2)(G)(ii) All or part of a qualified reservist distribution from a retirement plan to an individual called to active duty may be contributed to an IRA within two years after the active duty period ends.
Sec. 83(b) and Sec. 1.83– If substantially nonvested property to which section 83 applies is transferred to any 2(b) person, the service provider may elect to include the excess of the fair market value of the property over the amount paid for the property (if any) in gross income for the taxable year in which such property is transferred. This election must occur not later than 30 days after the date the property was transferred.
Sec. 83(i) Qualified employees who are granted stock options or restricted stock units (RSUs) and who later receive stock upon exercise of the option or settlement of the RSU (qualified stock) may elect to defer the recognition of income for up to five years if certain requirements are met. This election must be made not later than 30 days after the first date the rights of the employee in the qualified stock are transferable or are not subject to a substantial risk of forfeiture, whichever occurs earlier.
Proposed Sec. 1.125–2 Cafeteria plan participants will not be taxed on the permitted taxable benefits if they elect the qualified benefits they will receive before the beginning of the period during which the benefits will be provided.
Proposed Sec. 1.125–5(c) Cafeteria plan participants will not be taxed on unused amounts if, at the end of the plan year, they forfeit amounts elected but not used during the plan year.

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Statute or Regulation Act Postponed

Proposed Sec. 1.125–1(o)(4) Cafeteria plan participants may receive the value of unused vacation days in cash on or before the earlier of the last day of the cafeteria plan year or the last day of the employee’s taxable year to which the unused days relate.
Sec. 1.162–27(e)(2) A performance goal is considered pre-established if it is established in writing by the corporation’s compensation committee not later than 90 days after the commencement of the period of service to which the performance goal relates if the outcome is substantially uncertain at the time the compensation committee actually establishes the goal. In no event, however, will the performance goal be considered pre-established if it is established after 25 percent of the period of service has elapsed.
Sec. 219(f)(3) A contribution to an IRA shall be deemed to have been made by the taxpayer on the last day of the preceding taxable year if the contribution is made on account of such taxable year and is made not later than the time prescribed for filing the return (not including extensions thereof) for such taxable year.
Sec. 220(f)(5) A rollover contribution to an Archer MSA must be made no later than the 60th day after the day on which the account holder receives a payment or distribution from an Archer MSA.
Sec. 220(h) A trustee or custodian of an MSA (Archer MSA or Medicare�Choice MSA) must provide certain information concerning the MSA to the account holder by January 31 following the calendar year to which the information relates. In addition, MSA contribution information must be furnished to the account holder, and Form 5498-SA filed with the IRS, by May 31 following the calendar year to which the information relates.
Sec. 223(f)(5) A rollover contribution to a Health Savings Account (HSA) must be made no later than the 60th day after the day on which the account beneficiary receives a payment or distribution from an HSA.
Sec. 223(h) A trustee or custodian of an HSA must provide certain information concerning the HSA to the account beneficiary by January 31 following the calendar year to which the information relates. In addition, HSA contribution information must be furnished to the account beneficiary, and Form 5498–SA filed with the IRS, by May 31 following the calendar year to which the information relates.
Secs. 401(a)(9), 403(a)(1), Generally, the first required minimum distribution from plans subject to the rules 403(b)(10), 408(a)(6), 408(b)(3) in section 401(a)(9) must be made no later than the required beginning date, and and 457(d)(2), and Secs. subsequent required minimum distributions must be made by the end of each dis1.401(a)(9)–4, 1.401(a)(9)–6, tribution calendar year. Certain timing requirements apply for purposes of deterA–17, 1.401(a)(9)–8,A–2, mining an employee’s designated beneficiaries in the year following the employ1.403(b)–6(e)(9), and 1.408–8, ee’s death. Distributions under a qualifying longevity annuity contract (QLAC) A–12. must be made on or before certain dates. An excess premium under a QLAC must

be returned by the end of the calendar year following the calendar year in which it was paid. A non-spousal beneficiary under a QLAC with a set beneficiary designation must be designated by a certain date.

Sec. 401(a)(28)(B)(i) A qualified participant in an ESOP (as defined in section 401(a)(28)(B)(iii)) may elect within 90 days after the close of each plan year in the qualified election period (as defined in section 401(a)(28)(B)(iv)) to direct the plan as to the investment of at least 25 percent of the participant’s account in the plan (50 percent in the case of the last election).
Sec. 401(a)(28)(B)(ii) A plan must distribute the portion of the participant’s account covered by an election under section 401(a)(28)(B)(i) within 90 days after the period during which an election can be made; or the plan must offer at least three investment options (not inconsistent with regulations prescribed by the Secretary) to each participant making the election under section 401(a)(28)(B)(i) and within 90 days after the period during which the election may be made, the plan must invest the portion of the participant’s account in accordance with the participant’s election.
Sec. 401(a)(30) and Secs. Excess deferrals for a calendar year, plus income attributable to the excess through 1.401(a)–30 and 1.402(g)–1 the end of the calendar year, must be distributed no later than the first April 15 following the calendar year.

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Statute or Regulation Act Postponed

Sec. 401(b), Sec. A retirement plan that fails to satisfy the 1.401(b)–1, and Rev. Proc. 403(a) on any day because of a disqualifying 2016–37, 2016–29 I.R.B. 136 such requirements on such day if, prior to the
Sec. 401(b), Sec. A retirement plan that fails to satisfy the requirements of section 401(a) or section 1.401(b)–1, and Rev. Proc. 403(a) on any day because of a disqualifying provision will be treated as satisfying 2016–37, 2016–29 I.R.B. 136 such requirements on such day if, prior to the expiration of the applicable remedial

amendment period, all plan provisions necessary to satisfy the requirements of section 401(a) or 403(a) are in effect and have been made effective for the whole of such period.

Sec. 401(k)(8) A cash or deferred arrangement must distribute excess contributions for a plan year, plus income attributable to the excess through the end of the plan year, pursuant to the terms of the arrangement no later than the close of the following plan year.
Sec. 401(m)(6) A plan subject to section 401(m) must distribute excess aggregate contributions for a plan year, plus income attributable to the excess through the end of the plan year, pursuant to the terms of the plan, no later than the close of the following plan year.
Secs. 402(c), 403(a)(4), An eligible rollover distribution may be rolled over to an eligible retirement plan, 403(b)(8), 408(d)(3), and including an IRA, no later than the 60th day following the day the distributee re457(e)(16)(B) ceived the distributed property.
Secs. 402(c), 403(a)(4), An eligible rollover distribution may be rolled over to an eligible retirement plan, 403(b)(8), 408(d)(3), and including an IRA, no later than the 60th day following the day the distributee re457(e)(16)(B) ceived the distributed property.
Sec. 402(c)(3)(C) A qualified plan loan offset amount may be rolled over to an eligible retirement plan no later than the due date (including extensions) for filing the return of tax for the taxable year in which such amount is treated as distributed from a qualified employer plan.
Sec. 402(g)(2)(A) and Sec. An individual with excess deferrals for a taxable year must notify a plan not later 1.402(g)–1 than the first March 1 following the taxable year that excess deferrals have been contributed to the plan for the taxable year. A distribution of excess deferrals identified by the individual, plus income attributable to the excess through the end of the taxable year, must be made no later than the first April 15 following the taxable year of the excess.
Secs. 404(a)(6), A contribution to a qualified retirement plan, a simplified employee pension, or a 404(h)(1)(B), and 404(m)(2) SIMPLE IRA plan shall be deemed to have been made by the taxpayer on the last day of the preceding taxable year if the contribution is on account of such taxable year and is made not later than the time prescribed for filing the return for such taxable year (including extensions).
Sec. 404(k)(2)(A)(ii) An ESOP receiving dividends on stock of a C corporation maintaining the plan must distribute the dividends in cash to participants or beneficiaries not later than 90 days after the close of the plan year in which the dividends were paid.
Sec. 408(d)(4) A distribution of any contribution made for a taxable year to an IRA shall be included in gross income unless such distribution (which must include earnings attributable to the contribution) is received on or before the day prescribed by law (including extensions of time) for filing such individual’s return for such taxable year.
Secs. 408(i) and 6047(c) A trustee or issuer of an IRA must provide certain information concerning the IRA to the IRA owner by January 31 following the calendar year to which the information relates. In addition, IRA contribution information must be furnished to the owner, and Form 5498 filed with the IRS, by May 31 following the calendar year to which the information relates.
Sec. 408A(d)(6) If, on or before the date prescribed by law (including extensions of time) for filing the taxpayer’s return for a taxable year, a taxpayer transfers in a trustee-to-trustee transfer any contribution (other than a qualified rollover contribution) to an IRA made during such taxable year from such IRA to any other IRA and the transfer includes net earnings attributable to that contribution, then such contribution shall be treated as having been made to the transferee IRA (and not the transferor IRA).

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Statute or Regulation Act Postponed

Sec. 409(h)(4) An employer required to repurchase employer securities under section 409(h)(1)(B) must provide a put option for a period of at least 60 days following the date of distribution of employer securities from an ESOP to a participant, and if the put option is not exercised, for an additional 60-day period in the following plan year. A participant who receives a distribution of employer securities under section 409(h)(1)(B) must have the right to exercise the put option provided by that section for a period of at least 60 days following the date of distribution, or if the put option is not exercised within that period, for an additional 60-day period in the following plan year.
Sec. 409(h)(5) An employer required to repurchase employer securities distributed as part of a total distribution from an ESOP must pay for the securities in substantially equal periodic payments (at least annually) over a period beginning not later than 30 days after the exercise of the put option and not exceeding five years.
Sec. 409(h)(6) An employer required to repurchase employer securities distributed as part of an installment distribution from an ESOP must pay for the securities not later than 30 days after the exercise of the put option under section 409(h)(4).
Sec. 409(o) An ESOP must commence the distribution of a participant’s account balance, if the participant elects, not later than one year after the close of the plan year - i) in which the participant separates from service by reason of attaining normal retirement age under the plan, death or disability; or ii) which is the fifth plan year following the plan year in which the participant otherwise separates from service (except if the participant is reemployed before distribution is required to begin). An ESOP must also, unless the participant elects otherwise, distribute the participant’s account balance in substantially equal payments over a period not longer than five years (a longer period applies if the account balance exceeds $800,000, as adjusted for cost of living).
Sec. 414(w)(2) and Sec. An employee can elect a permissible withdrawal from an eligible automatic contri1.414(w)–1(c) bution arrangement (EACA) if the election is made within 90 days of the date of the employee’s first elective contribution under the EACA.
Sec. 1042(a)(2) A taxpayer must purchase qualified replacement property (defined in section 1042(c)(4)) within the replacement period, defined in section 1042(c)(3) as the period which begins three months before the date of the sale of qualified securities to an ESOP and ends 12 months after the date of such sale.
Sec. 4972(c)(3) Nondeductible contributions to a qualified employer plan must be distributed prior to a certain date to avoid the imposition of a 10 percent tax.
Sec. 4973 Excess contributions to an IRA or certain other tax-favored accounts must be distributed prior to a certain date to avoid the imposition of a six percent tax.
Sec. 4979 and Sec. A 10 percent tax on the amount of excess contributions and excess aggregate con54.4979–1 tributions under a plan for a plan year will be imposed unless the excess, plus income through the end of the plan year attributable to the excess is distributed (or, if forfeitable, forfeited) no later than 2 1/2 months (six months in the case of an EACA) after the close of the plan year. In the case of a salary reduction simplified employee pension (SARSEP), the employer must notify employees of the excess and the tax consequences within the 2 1/2 -month period to avoid the tax.
Secs. 6057, 6058, and 6059 Form 5500, Annual Return/Report of Employee Benefit Plan; Form 5500–SF, Short Form Annual Return/Report of Small Employee Benefit Plan; Form 5500– EZ, Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan (Form 5500 series), which are used to report annual information concerning employee benefit plans and fringe benefit plans, must be filed by a specified time. Form 8955–SSA, Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits, which is used to report information about separated participants with deferred vested benefits under a plan, must be filed by a specified time.

General Advice

Bulletin No. 2018–50 1001 December 10, 2018

Statute or Regulation Act Postponed

Affected filers are advised to follow the instructions accompanying the Form 5500 series or Form 8955–SSA (or other guidance published on the postponement) regarding how to file the forms when postponements are granted pursuant to section 7508 or section 7508A.

Combat Zone Postponements under Section 7508

Individual taxpayers who meet the requirements of section 7508 are entitled to a postponement of the Form 5500 series filing due date under section 7508. The postponement of the Form 5500 series filing due date under section 7508 will also be permitted by the Department of Labor and the Pension Benefit Guaranty Corporation (PBGC) for similarly situated individuals who are plan administrators.

Postponements for Federally Declared Disasters and Terroristic or Military Ac- tions under Section 7508A

In the case of “affected taxpayers,” as defined in § 301.7508A–1(d), the IRS may permit a postponement of the Form 5500 series filing due date. Taxpayers who are unable on a timely basis to obtain information necessary for completing the forms from a bank, insurance company, or any other service provider because such service provider’s operations are located in a covered disaster area will be treated as “affected taxpayers.” Whatever postponement of the Form 5500 series filing due date is permitted by the IRS under section 7508A will also be permitted by the Department of Labor and PBGC for similarly situated plan administrators and direct filing entities.

Sec. 6343(f) If the Secretary determines that an individual’s account or benefit under an eligible retirement plan (including an IRA) has been wrongfully levied upon (or that the levy was premature or otherwise not in accordance with administrative procedures of the Secretary), and property or an amount of money is returned to the individual, the individual may roll over the property or amount (plus interest paid) to an eligible retirement plan no later than the due date (not including extensions) for the filing of the return of tax for the taxable year in which the property or amount is returned.
Rev. Proc. 2016–51, The correction period for self-correction of operational failures is the last day of 2016–42 I.R.B. 466, Sections the second plan year following the plan year for which the failure occurred, except 9.02(1) and (2) that a special rule applies in the case of a failure to satisfy section 401(k)(3) or
Rev. Proc. 2016–51, The correction period for self-correction of operational failures is the last day of 2016–42 I.R.B. 466, Sections the second plan year following the plan year for which the failure occurred, except 9.02(1) and (2) that a special rule applies in the case of a failure to satisfy section 401(k)(3) or

401(m)(2). The correction period for self-correction of operational failures for transferred assets does not end until the last day of the first plan year that begins after the corporate merger, acquisition, or other similar employer transaction.

Rev. Proc. 2018–4, Appen- If a plan is not required to file a Form 5500 series return, for Voluntary Correction dix A, Section .09(1) Program (VCP) user fee purposes, the amount of net assets generally will be the
Rev. Proc. 2018–4, Appen- If a plan is not required to file a Form 5500 series return, for Voluntary Correction dix A, Section .09(1) Program (VCP) user fee purposes, the amount of net assets generally will be the

amount as of the last day of the most recently completed plan year preceding the date of the VCP submission. However, if this information has not been compiled by the time the plan sponsor is ready to make a VCP submission to the IRS, the plan sponsor may use the amount of net assets associated with the most recently completed prior plan year for which information on the amount of net assets is available. This exception will not apply if the VCP submission is mailed to the IRS more than seven months after the close of the most recently completed plan year preceding the date of the VCP submission.

Rev. Proc. 2016–51, Section If an examination of a plan in the Audit Closing Agreement Program (Audit CAP) 14.03 involves a plan with transferred assets and the IRS determines that no new incidents of the failures that relate to the transferred assets occurred after the end of the second plan year that begins after the corporate merger, acquisition, or other similar employer transaction, the sanction under Audit CAP will not exceed the sanction that would apply if the transferred assets were maintained as a separate plan.

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