Posts

Yellow triangle background

By Jodie Norquist, CIP, CHSP; Ascensus, a WBA Associate Member 

If your financial organization administers IRAs, health savings accounts (HSAs), and Coverdell education savings accounts (ESAs), you are likely aware of the many reporting deadlines looming in the first quarter of the coming year. Performing these annual administrative tasks can be stressful. After all, compliance errors or missed deadlines can lead to costly financial penalties.

Here’s a rundown of the impending due dates, along with a brief description of the financial organization’s requirements. Please note that if any of these deadlines fall on a Saturday, Sunday, or legal holiday, the deadline is extended to the following business day.

January 31

Fair Market Value Statement

Financial organizations must provide an annual fair market value (FMV) statement to IRA owners and beneficiaries by January 31. These statements must be provided to Traditional, Roth, and SIMPLE IRA owners. They must also be provided to Traditional IRA owners that have received simplified employee pension (SEP) plan contributions. FMV statements are required for both IR accounts and IR annuities, including those that have been annuitized.

NOTE: FMV statements are not required but are recommended for HSAs.

The FMV statement must

  • show the IRA’s FMV as of December 31 of the previous year;

  • be presented in any type of written format;

  • be provided to IRA owners even if no contributions were made to the IRA for that year; and

  • contain a legend designating which information is being furnished to the IRS on Form 5498, IRA Contribution Information.

Required Minimum Distribution (RMD) Statement

If an IRA owner is age 72 or older and is required to take a distribution from an IRA for the year, the financial organization holding the IRA on December 31 of the prior year must provide an RMD statement to the IRA owner by January 31. RMD statements are not required for beneficiaries or for Roth IRA owners. This statement may be combined with the FMV statement.

The RMD statement must

  • inform the IRA owner that an RMD is due for the calendar year,

  • notify the IRA owner of the date by which the RMD must be taken,

  • include an offer to provide a calculation of the RMD amount, upon request, and

  • communicate what information is being reported to the IRS for the year.

This requirement may also be satisfied if a Form 5498 is sent to the IRA owner by January 31. If a financial organization opts to use Form 5498 to satisfy the RMD statement, then the date by which the RMD must be distributed should be entered in Box 12a, RMD date, and the RMD amount in Box 12b, RMD amount. However, keep in mind that if an IRA owner must take an RMD for the year, the financial organization is not required to report any RMD information to the IRS on Form 5498, other than the fact that an RMD is due.

SIMPLE IRA Account Statement

Financial organizations must provide SIMPLE IRA owners with an account statement by January 31. Although the IRS hasn’t provided any specific guidance on the form that the account statement must take, the SIMPLE IRA account statement must include

  • the SIMPLE IRA’s account balance as of the end of the previous calendar year;

  • a summary of the account activity throughout the previous calendar year; along with

  • any distributions taken or fees charged against the account, as well as all contributions.

Coverdell ESA Year-End Statement

While year-end statements for Coverdell ESAs are not required, they are recommended. Before 2003, the FMV of an ESA—originally known as an Education IRA—was reported on Form 5498, IRA Contribution Information, which suggests reporting ESA FMVs as a “best practice.” The recommended deadline for providing a year-end statement to the designated beneficiary is January 31. This statement should show

  • the ESA’s FMV as of December 31 of the previous year, and

  • contribution activity for the calendar year.

IRS Form 1099-R

Financial organizations must report Traditional, Roth, and SIMPLE IRA distributions made during the calendar year on Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., to IRA owners and beneficiaries by January 31.

Distributions reported on Form 1099-R include

  • rollovers,

  • recharacterizations, and

  • conversions.

IRS Form 1099-SA

HSA and medical savings account (MSA) owners must be sent a Form 1099-SA, Distributions from HSA, Archer MSA, or Medicare Advantage MSA, by January 31, which reports their distributions for the previous year.

IRS Form 1099-Q

ESA distributions that were taken during the previous calendar year are reported on IRS Form 1099-Q, Payments From Qualified Education Programs, which is due to recipients by January 31.

IRS Form 945 and 945-A

Financial organizations must report amounts withheld by payers to the IRS on Form 945, Annual Return of Withheld Federal Income Tax. Form 945 is due to the IRS by January 31 of the year following the year the taxes are withheld.

NOTE: If withholding deposits are made on time and in full, the due date for filing Forms 945 and 945-A is February 10, rather than January 31. 

Some payers are required to file Form 945-A, Annual Record of Federal Tax Liability, in addition to Form 945, depending upon the payer’s withholding depositor status. Monthly depositors file only Form 945, which lists the amount of nonpayroll withholding collected for each month. Semiweekly depositors, however, file Form 945-A with Form 945 to report nonpayroll withholding. Form 945-A reports the amount of nonpayroll withholding collected each day. The IRS uses Form 945-A to match the tax liability to deposits to determine whether the withholding tax liabilities have been timely deposited.

Employer SEP Contribution Notice

Employers that make SEP plan contributions for employees must notify employees of all discretionary contributions by the later of

  • January 31 of the year following the year for which the contribution is made, or

  • 30 days after the contribution is made (potentially as late as the SEP plan sponsor’s tax return due date, including extensions).

February 28

IRS Forms 1099-R, 1099-Q, and 1099-SA

Forms to report distributions are due to the IRS by February 28 if filing on paper. The paper form must be filed with a Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

March 15

IRS Forms 1099-R, 1099-Q, and 1099-SA

Forms 1042 and 1042-Srm 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, is filed to report tax withheld by the payor on certain payments (including IRA distributions) to foreign persons, including nonresident aliens. Form 1042 must be filed with recipients’ Forms 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, by March 15 of the year following the year of distribution.

March 31

IRS Forms 1099-R, 1099-Q, and 1099-SA

These forms used to report distributions from IRAs, Coverdell ESAs, HSAs, and MSAs are due to the IRS by March 31 if filing electronically. Financial organizations must file electronically if there are 250 or more returns of any one type.

Events

In January 2022 the IRS released new federal tax withholding forms W-4R and W-4P. Here’s your opportunity to learn about the new forms, as well as how to best handle many common (and sometimes tricky) issues to ensure smooth sailing for your IRA and HSA programs.

AFTER THIS WEBINAR YOU’LL BE ABLE TO:

  • Understand the new 2023 federal tax withholding rule changes and requirements
  • Discuss the 2022 voluntary withholding rule change implications
  • Complete the new W-4R form for nonperiodic IRA distributions
  • Examine the three life expectancy tables that changed on January 1, 2022
  • Examples of the effect on RMD and beneficiary life expectancy distributions
  • Review the beneficiary “reset rule” when calculating life expectancy payouts
  • Identify which types of IRA beneficiaries have lost the “stretch IRA” option because of the SECURE Act
  • Determine when IRA and HSA plan document amendments are required
  • Answer the most-common HSA questions
  • Recognize your responsibilities when monitoring HSA contribution limits
  • Analyze how to handle employer mistakes in contributions and HSA owner mistakes in distributions
  • Explain the proper handling and reporting of HSA death distributions

WEBINAR DETAILS
Join this lively discussion of the top issues facing individual retirement account (IRA) and health savings account (HSA) owners and financial organizations. The timely information provided will explain how to avoid common pitfalls associated with owning or administering IRA and HSA accounts. It will review 2022’s hottest IRA and HSA issues and provide the information needed to stay on track. Attend this session to learn the answers to the most common questions from IRA and HSA owners.

WHO SHOULD ATTEND?
This detailed webinar will benefit everyone involved with IRA or HSA accounts, including service representatives, operations staff, administrative personnel, management, trust department personnel, and licensed insurance and securities agents.

TAKE-AWAY TOOLKIT
• PDF of slides and speaker’s contact info for follow-up questions
• Attendance certificate provided to self-report CE credits
• Employee training log
• Interactive quiz

NOTE: All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your agency is prohibited. Print materials may be copied for eligible participants only.

MEET THE PRESENTER — Frank J. LaLoggia, LaLoggia Consulting, Inc.
Frank LaLoggia is the President of LaLoggia Consulting, Inc., a pension consulting firm that assists financial organizations with ongoing support in the creation, development, and marketing of their retirement plans offerings.

LaLoggia coordinates and conducts pension seminars and training programs throughout the United States, including in-house IRA, HSA, and employer retirement plan training. With over 40 years of experience, he has assisted many leading financial organizations in the pension and financial services industries.

REGISTRATION OPTIONS

  • $245 – Live Webinar Access
  • $245 – OnDemand Access + Digital Download
  • $320 – Both Live & On-Demand Access + Digital Download

The Health Savings Account program was signed into law in 2004 to help relieve the financial burden caused by high deductible health insurance plans. As premiums skyrocketed back in the early 2000’s, the “semi” cost-effective way of dealing with higher out-of-pocket expenses was to open a tax-deductible account earning tax-free interest when used for a qualified medical expense.

Over the last 15 years there have been many changes to HSAs so this annual update is a necessity when it comes to keeping up with the latest rules and regulations.

Covered Topics

  • What are the HSA Cost of Living Adjustments for 2022?
  • What happens to a Family plan when one spouse enrolls in Medicare?
  • Are customers eligible to have an HSA if they dropped their health insurance?
  • What happens when an HSA owner dies?
  • What are the reporting requirements by the bank and the HSA Customer?
  • What are the new qualified tax-free medical expenses?
  • Who can use the funds in the HSA?
  • How are non-qualified withdrawals from an HSA taxed and penalized?
  • Is there a time limit for an HSA owner to be reimbursed from an HSA for out-of-pocket medical expenses?

Who Should Attend?
All bank personnel involved in opening, processing and answering questions regarding Health Savings Accounts — including CSRs, Call Center Reps, Operations, and Compliance.

Presenter
Patrice M. Konarik is president of Sunwest Training Corp. founded over 25 years ago and is located in the Texas Hill Country near San Antonio, Texas. With over 35 years in the financial industry, Konarik has focused her expertise on the retirement account area and is currently providing live training and Webinars on IRAs and Health Savings Accounts on a nationwide basis. She has a BS in management science from New York’s Binghamton University. Many state banking associations and other organizations use her as their main source for training on these complicated topics.

Registration Option

  • Live Access, 30 Days OnDemand Playback, Presenter Materials and Handouts – $279
  • Available Upgrades:
    • 12 Months OnDemand Playback + $110
    • 12 Months OnDemand Playback + CD  + $140
    • Additional Live Access + $75 per person

This seminar will provide the banker with several advanced tax return concepts and related analyses to help them more effectively work with their business customers.

The session will begin with a brief review of analyzing a business owner’s personal 1040 tax return and the return of an LLC, S corporation, and C corporation including Schedules M-1 and M-2, Schedule K-1, pass-through transactions, and other deductions.

The remainder of the seminar will cover the following advanced tax topics related to business clients:

  • Corporate tax Issues including business structure, Section 179 depreciation, and bonus depreciation
  • Investments including capital gain/loss issues and passive activities
  • Real estate issues including personal residence, rentals, home offices, and 1031 tax-free exchanges
  • Employer provided benefits including Qualified Retirement Plans and Health Savings Accounts (HSAs)
  • Retirement planning strategies including Defined Benefit (DB) plans
  • Estate planning issues including gifting
  • Year-end tax strategies
  • Changes to the Tax Code that impact Business Owners including the Tax Cuts and Jobs Act (TCJA), the CARES Act, and proposed tax legislation

Target Audience: Commercial lenders, credit analysts, relationship managers, and credit administrators

Presenter
David Osburn, Osburn & Associates, LLC

Registration Option
Live presentation $330

Recording available through June 22, 2022

Take your knowledge of HSAs to the next level with a review of difficult HSA issues regarding eligibility requirements, employer contributions, excess contributions, prohibited transactions, mistaken distributions, and reporting. For a refresher on HSAs, see HSA Fundamentals.

Registration Option
Live presentation $275

Recording available through December 14, 2022

The rules and regulations governing IRAs, HSAs, and other tax favored savings accounts are constantly evolving, and can be challenging to keep up with. Rely on our industry experts to bring you up to date on recently proposed legislation and regulatory updates that may affect your organization and your clients.

Presented by Ascensus

Registration Option

Live presentation $275

Recording available through May 9, 2022

Want to manage a successful HSA program more effectively? During this course, our experts teach on the fundamentals of HSAs and basic HSA compliance rules. You will gain an understanding of HSA benefits, eligibility requirements, documentation and reporting requirements, contribution rules and limits, portability rules, and the difference between qualified and nonqualified distributions.

For a deeper dive into HSAs, see HSAs – Advanced.

Registration Option: Live presentation $275

Recording available through December 7, 2022

The WBA Health Savings Account Workshop will take place on April 12 at the Wisconsin Bankers Association Office in Madison. The Workshop will begin at 8:30 a.m. and conclude at 4:00 p.m.

Whether your financial organization is just entering the HSA marketplace or looking to enhance its current HSA program, this day long seminar is the ideal training program. It will cover all aspects of a successful HSA program and give you a comprehensive curriculum along with a practical understanding of critical rules and operational issues.

Topics Include:

  • Introduction to HSAs
  • Establishing HSAs
  • HSA Funding
  • HSA Distributions
  • HSA Portability
  • HSA Compliance

Who Should Attend:

  • Industry professionals needing to become more comfortable with HSA rules.
  • Those responsible for ensuring a compliant HSA department.
  • Those needing an understanding of the basics of HSAs.
  • Those looking for an update on the latest industry changes.
  • Those who are responsible for internal systems, HSA transaction codes, and proper HSA administration.

Registration:

The registration fee of $225 includes program registration, instruction and materials, refreshment breaks and, lunch.

Refund Policy:

A refund, less a $25 administrative fee, is provided for cancellations requested on or before April 8th.

From recent legislation to trends to contribution limits, this important IRA and HSA update will provide all the vital information you need in a tidy package. This dynamic webinar will also address pending legislation and the potential impact of changes on the horizon.

AFTER THIS WEBINAR YOU’LL BE ABLE TO:
Appreciate the far-reaching effects of recently enacted legislation and pending tax bills; proposed tax bills include:
Retirement reform (“SECURE 2.0”)
Build Back Better reconciliation
Infrastructure 1.0
Examine current HSA issues, trends, and contribution limits
Discuss traditional and Roth IRA contribution limits
Understand the latest IRA issues and trends

WEBINAR DETAILS
The winds of change are once again in the air. Comprehensive retirement plan legislation is pending. As we start a new year, it is important to be aware of and understand how recent regulatory changes and proposed legislation will impact your IRA and HSA programs. Join us for a lively discussion about the many implications of what is new and important in 2022 and beyond.

Attendance certificate provided to self-report CE credits.

WHO SHOULD ATTEND?
This very timely webinar will provide individuals who have direct IRA owner contact, operational, compliance, or decision-making authority with the information needed to make informed decisions about IRA and HSA plans and programs. It will also benefit individuals who hold insurance or securities licenses.

TAKE-AWAY TOOLKIT
Employee training log
Interactive quiz

PRESENTER
Frank J. LaLoggia, LaLoggia Consulting, Inc.
Frank LaLoggia is the President of LaLoggia Consulting, Inc., a pension consulting firm that assists financial organizations with ongoing support in the creation, development, and marketing of their retirement plans offerings.

Frank coordinates and conducts pension seminars and training programs throughout the United States, including in-house IRA, HSA, and employer retirement plan training. With over 40 years of experience, he has assisted many leading financial organizations in the pension and financial services industries.

REGISTRATION OPTIONS
$245 Live Webinar Access
$245 On-Demand Access + Digital Download
$320 Both Live & On-Demand Access + Digital Download

HSAs are one of the fastest growing products currently offered by financial organizations. Whether your organization already offers HSAs or is just thinking about it, join us as we discuss the Top 10 HSA issues revolving around these increasingly popular accounts.

Presented by Ascensus

Registration Option

Live presentation $225

Recording available through Mar. 29, 2022

This course is perfect for individuals who are comfortable with HSAs and are looking to further enhance their understanding of these accounts. This course will take your knowledge to the next level with a review of difficult HSA issues regarding eligibility requirements, employer contributions, excess contribution issues, prohibited transactions, mistaken distributions and reporting.

Presented by Ascensus

Registration Option

Live presentation $225

Recording available through Mar. 22, 2022