RPS COVID-19 PREPAREDNESS
RPS & COVID-19 Preparedness
We will continue operations as usual.
Monday through Friday,
7AM to 6PM MT.
Employees can only use company-provided computers to access our network and then only after satisfying our dual-authentication security protocols.
We have extremely robust data encryption and all data resides securely on our Azure virtual file servers.
After 18 months of preparation, RPS and 24HourFlex transitioned in 2017 to a fully-remote environment and we have operated this way for three years.
While we maintain a Colorado office, headquartered in Littleton, we now have employees in over a dozen states.
COVID-19 Pension Administration Announcements
For anyone with an existing 12/31 plan year-end Cash Balance plan, prior to anyone working 1,000 hours in 2020, you may have the option of freezing your plan so that new benefits in 2020 do not accrue.
Please click here for an explanation of what freezing your Cash Balance plan might entail from Nathan Carlson, President of RPS.
- ⬤ An automatic extension to October 15 for filing of the Form 5500 series for retirement plans with calendar year plan years (with corresponding extensions for non-calendar year plan years).
- ⬤ A 90-day extension to the deadline for correcting a failed ADP or ACP test and a 90-day extension of the period for distributing excess contributions and excess aggregate contributions under a plan (March 15 for a calendar year plan year) without incurring a 10% tax under Code Section 4979 for distributions after the statutory deadline.
- ⬤ A 120-day extension of the defined benefit plan restatement deadline (currently April 30, 2020).
- ⬤ A 90-day extension of the 1099-R e-filing deadline for employers (normally March 31, 2020).
- Reasonable relief from notices required to be provided to plan participants under Title I of ERISA.
In the wake of the Coronavirus outbreak, one of the countless issues facing plan sponsors and practitioners alike is determining a participant’s employment status, more specifically whether there has been a severance of employment.
This determination must be made in order to apply a wide variety of rules that apply with qualified plans, IRC §403(b) arrangements and IRC §457(b) plans.
- ⬤ Diagnosed with COVID-19
- ⬤ Whose spouse or dependent is diagnosed with COVID-19
- ⬤ Who experiences adverse financial consequences as a result of being quarantined, furloughed, laid off, having work hours reduced, being unable to work due to lack of child care due to COVID-19, closing or reducing hours of a business owned or operated by the individual due to COVID-19; or
- ⬤ Meets other factors as determined by the Treasury Secretary.
Plan Loans (Section 2202): H.R. 748 doubles the current retirement plan loan limits to the lesser of $100,000 or 100% of the participant’s vested account balance in the plan. Individuals with an outstanding loan from their plan with a repayment due from the date of enactment of the CARES Act through Dec. 31, 2020, can delay their loan repayment(s) for up to one year.
Plan Amendments (Section 2202): The legislation further permits retirement plans to adopt these rules immediately, even if the plan does not currently allow for hardship distributions or loans, provided the plan is amended on or before the last day of the first plan year beginning on or after Jan. 1, 2022, or later if prescribed by the Treasury Secretary.