On May 8, 2012, ASPPA submitted comments to the Internal Revenue Service regarding the use of forfeitures to fund safe harbor contributions. ASPPA requested that the IRS consider issuing additional guidance clarifying that forfeitures can be used to fund ADP safe harbor contributions and that forfeitures may be used to fund ADP safe harbor contributions that are qualified automatic contribution arrangements. [Comment]

On May 8, 2012, ASPPA submitted comments to the Internal Revenue Service with respect to proposed regulations relating to longevity annuity contracts under defined contribution plans. ASPPA recommended an increase in the limits, greater flexibility and clarifications regarding premiums paid under a contract that fails or ceases to be a QLAC.  [Comment]

On May 2, 2012, ASPPA and ACOPA submitted comments on proposed modifications to IRC 417(e) regulations regarding partial annuity distribution options. Issues addressed included implications for past practice, multiple annuity starting dates and notice and election rules for bifurcated benefits.  [Comments]

On April 30, 2012, ASPPA, CIKR and NAPA filed a comment letter with the Department of Labor requesting clarification that asset allocation strategies and model portfolios are not designated investment alternatives as defined in Regulation §2550.408b-2(c) as well as Regulation §2550.404a-5. Additionally, the letter recommended that the Department of Labor establish a 1-year transitional period during which good faith efforts to interpret and apply the new regulations will be acceptable. [Comment]

On April 16, 2012, ASPPA joined 28 other organizations in urging House Ways and Means Committee members to support tax incentives for retirement savings. The statement was provided in advance of the committee’s April 17 hearing on the retirement savings incentives. [letter]

On January 23, 2012, NTSAA and ASPPA submitted comments to the Internal Revenue Service in support of the inclusion of 403(b) plans in the prototype program for pre-approved plan documents. IRS officials have recently indicated that budget concerns may result in a reexamination of whether to include 403(b) plan documents in the pre-approved plan program. NTSAA and ASPPA believe that a prototype program for 403(b) plans is essential for the proper administration of the tax laws and that it would be a mistake to abandon this integral component of 403(b) compliance.  [Comment]