| Dear Center Members: |
This alert contains information about:
- AICPA launches OnPoint EBP
- IRS notices expanding access to COVID-19 related plan distributions and loans and providing guidance on required minimum distributions
- DOL EBSA COVID-19 guidance and relief, including procedural requirements for plan loans and distributions and adequate security requirements for participant loans
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AICPA and CPA.com launch OnPoint EBP
The AICPA and CPA.com launched OnPoint EBP, a cloud-based audit solution designed to facilitate the efficient and effective performance of limited scope employee benefit plan audits. OnPoint EBP is powered by the CaseWare Cloud platform and designed for audits of employee benefit plans pursuant to ERISA Section 103 (a)(3)(C). OnPoint combines AICPA-developed methodology, engagement management, analytics, advanced client collaboration tools and links to authoritative guidance within a single application.
OnPoint EBP comprises a unique plan profile that serves as a scoping tool to help identify appropriate areas of focus and nuances unique to the plan under audit. This tool:
- Helps the auditor gain an understanding of the employee benefit plan
- Offers a guided approach to risk assessment
- Automates drafting of engagement letters and reports
- Assists with drafting of financial statements and note disclosures as a permissible nonattest service
- Integrates AICPA methodology and guidance that intelligently builds out the engagement as work progresses
- Integrates diagnostics to indicate when an auditor's response warrants additional consideration or when someone chooses a non-standard path.
OnPoint EBP is commercially available to all firms through AICPA's business arm, CPA.com, and may be used for ERISA limited scope audits both currently and after the adoption of SAS 136 Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA.
For more information on OnPoint EBP, including a product overview, key benefits, pricing and training, visit cpa.com/onpoint-ebp.
If you have questions about OnPoint EBP please contact CPA.com at inquire@hq.cpa.com.
IRS issues notices to expand access to COVID-19 related plan distributions and plan loans for qualified participants, and provide guidance on required minimum distributions
The Internal Revenue Service (IRS) Notice 2020-50, Guidance for Coronavirus-Related Distributions and Loans from Retirement Plans Under the CARES Act, expands access to COVID-19 related plan distributions and plan loans for qualified participants by expanding the categories of individuals eligible for these types of distributions and loans (referred to as "qualified individuals") and providing helpful guidance and examples on how qualified individuals will reflect the tax treatment of these distributions and loans on their federal income tax filings.
Notice 2020-50 expands the definition of who is a qualified individual to take into account additional factors such as reductions in pay, rescissions of job offers, and delayed start dates with respect to an individual, as well as adverse financial consequences to an individual arising from the impact of the COVID-19 coronavirus on the individual's spouse or household member. As expanded under Notice 2020-50, a qualified individual is anyone who –
- is diagnosed, or whose spouse or dependent is diagnosed, with the virus SARS-CoV-2 or the coronavirus disease 2019 (collectively, "COVID-19") by a test approved by the Centers for Disease Control and Prevention (including a test authorized under the Federal Food, Drug, and Cosmetic Act); or
- experiences adverse financial consequences as a result of the individual, the individual's spouse, or a member of the individual's household (that is, someone who shares the individual's principal residence):
- being quarantined, being furloughed or laid off, or having work hours reduced due to COVID-19;
- being unable to work due to lack of childcare due to COVID-19;
- closing or reducing hours of a business that they own or operate due to COVID-19;
- having pay or self-employment income reduced due to COVID-19; or
- having a job offer rescinded or start date for a job delayed due to COVID-19.
Click here for IRS Notice 2020-50.
In addition, IRS Notice 2020–51, Guidance on Waiver of 2020 Required Minimum Distributions, provides guidance relating to the waiver of 2020 required minimum distributions (RMDs) under the CARES Act. In particular, the notice:
- permits rollovers of waived RMDs and certain related payments, including an extension of the 60-day rollover period for certain distributions to August 31, 2020
- answers questions relating to the waiver of 2020 RMDs; and
- provides a sample plan amendment that, if adopted, would provide participants a choice whether to receive waived RMDs and certain related payments.
The notice also provides transition relief for plan administrators and payors in connection with the change in required beginning date for RMDs under the SECURE Act.
Click here for IRS Notice 2020-51.
DOL EBSA issues COVID-19 guidance and relief, including procedural requirements for plan loans and distributions, and adequate security requirements for participant loans
The DOL Employee Benefit Plan Security Administration (EBSA) issued Disaster Relief Notice 2020-01; Guidance and Relief for Employee Benefit Plans Due to the COVID-19 (Novel Coronavirus) Outbreak which extends the deadlines for furnishing certain required notices or disclosures to plan participants, beneficiaries, and other persons so that plan fiduciaries and plan sponsors have additional time to meet their obligations under Title of I ERISA during the COVID-19 outbreak. EBSA Disaster Relief Notice 2020-01 also provides verification requirements relief for plan loans and distributions, and the adequate security requirement in ERISA for participant loans; and certain plan amendments related to the COVID-19 outbreak.
Click here for EBSA Disaster Relief Notice 2020-01.
Sincerely,
AICPA Employee Benefit Plans Audit Quality Center |
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