The ERISA consultants at the Learning Center Resource Desk, which is available through Columbia Threadneedle Investments, regularly receive calls from financial advisors on a broad array of technical topics related to IRAs and qualified retirement plans. A recent call with a financial advisor in Oregon is representative of a common question related to retirement plan technical answers from the IRS. The advisor asked:
"Someone said the IRS will no longer answer technical questions related to retirement plans. Is that true?"
Highlights of Discussion
Effective October 1, the Employee Plans unit of the IRS will no longer answer retirement-plan related legal and technical questions by email. This includes questions forwarded from its Customer Account Services area.
According to the IRS, this change is due to a realignment of legal work and a number of Employer Plans unit employees having moved to the Office of the Associate Chief Counsel in January 2015.
Furthermore, the telephone assistance available from Customer Account Services will be limited to:
- Account-specific questions
- Basic information about Employer Plans forms
- Status of pending applications (e.g., determination, opinion or advisory letter applications)
In its announcement about curtailing services, the IRS pointed out that many answers to retirement plan questions are on IRS.gov at the Retirement Plans and Retirement Plan Forms and Publications pages.
Furthermore, if the situation involves a legal question that needs to be addressed, individuals may want to request a private letter ruling (PLR), which is a written statement that interprets and applies tax laws to the taxpayer's specific set of facts. See Revenue Procedure 2015-1 on how to obtain a PLR and the applicable user fees.
Conclusion
With the cutback in technical resources from the IRS, it becomes even more imperative for retirement plan service providers to secure access to a reliable source of technical support and tools. Financial advisors who partner with Columbia Threadneedle Investments wholesalers can gain access to retirement plan expertise, technical information, best practices, positioning points and real-time support from the seasoned veterans who staff the Learning Center Resource Desk.
The Learning Center Resource Desk is staffed by the Retirement Learning Center, LLC (RLC), a third-party industry consultant that is not affiliated with Columbia Threadneedle. Any information provided is for informational purposes only. It cannot be used for the purposes of avoiding penalties and taxes. Columbia Threadneedle does not provide tax or legal advice. Consumers consult with their tax advisor or attorney regarding their specific situation.
Information and opinions provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Columbia Threadneedle.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies.
©2015, Columbia Management Investment Advisers, LLC. Used with permission.
