IRS Updates Materials for 403(b) Plans, IRAs

The IRS has made available updated materials relevant to annual filings that 403(b) plans and certain IRA holders must make. Specifically, it has made available for 2015 filings:

• the instructions for IRS Form 8955-SSA, “Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits”;
• Publication 571, “Tax-Sheltered Annuity Plans (403(b) Plans) for Employees of Public Schools and Certain Tax-Exempt Organizations”; and
• the instructions for Form 8606, “Nondeductible IRAs.”

Form 8955-SSA Instructions

Plan administrators of plans subject to the vesting standards of section 203 of ERISA must file Form 8955-SSA. For example, the plan administrator of a 403(b) plan that is subject to the vesting standards of Section 203 of ERISA must file a Form 8955-SSA for the plan’s deferred vested participants.

A plan administrator is not required to report a separated participant if the participant’s deferred vested benefits are attributable to an annuity contract or custodial account that is not required to be treated as part of the 403(b) plan assets.

Sponsors and administrators of government, church and other plans that are not subject to the vesting standards of section 203 of ERISA (including plans that cover only owners and their spouses) may file Form 8955-SSA voluntarily.

Publication 571

The IRS made the following changes regarding Publication 571 for filings by 403(b) plans.

For 2015:

• for 2015, the adjusted gross income (AGI) limitations increased from $60,000 to $61,000 for married filing jointly filers, from $45,000 to $45,750 for head of household filers, and from $30,000 to $30,5000 for single, married filing separately, or qualifying widow(er) with dependent child filers;
• the limit on elective deferrals increased from $17,500 to $18,000; and
• the limit on annual additions increased from $52,000 to $53,000.

For 2016:

• for 2016, the adjusted gross income (AGI) limitations increased from $61,000 to $61,500 for married filing jointly filers, from $45,750 to $46,125 for head of household filers, and from $30,500 to $30,750 for single, married filing separately, or qualifying widow(er) with dependent child filers;
• the limit on elective deferrals remains unchanged at $18,000; and
• the limit on annual additions remains unchanged at $53,000.

Form 8606

The IRS made the following changes regarding Form 8606 for 2015 filings by certain IRA holders:

• the modified AGI limit for Roth IRA contributions increased; and
• because April 15, 2016, falls on Emancipation Day, a legal holiday in the District of Columbia, the due date for making contributions for 2015 to an IRA is April 18, 2016, even if one does not live in the District of Columbia. Those living in Maine or Massachusetts have until April 19, 2016, because of the Patriots' Day holiday in those states