What's New? SECURE Act Makes Significant Changes to Retirement Accounts

The SECURE Act (Setting Every Community Up for Retirement Enhancement) became effective January 1, 2020 and makes sweeping changes to Retirement Accounts.

Important highlights include:

• Age Limit Eliminated for Traditional IRA Contributions

Beginning in 2020, the new law eliminates the age limit for traditional IRA contributions (formerly 70 ½). Now, those who are still working can continue to contribute to a traditional IRA, regardless of their age. See Eligibility in The Gold Book.

• RMD Age Raised to 72

The SECURE Act also raises the age for beginning RMDs to 72 for all retirement accounts subject to RMDs. IRA owners reaching age 70 ½ in 2020 catch a break and will not have to take their first RMD in 2020 now that the RMD deadline has been extended to age 72. See Mandatory Distributions and When Benefits Must Begin in The Gold Book.

• New Exception to the 10% Penalty for Birth or Adoption

The SECURE Act adds a new 10% penalty exception for birth or adoption. It is limited to $5,000 per individual over a lifetime. The birth or adoption distribution amount can be repaid at any future time (re-contributed back to any retirement account). See IRS Penalty Exceptions and Withdrawals Prior to Age 59-1/2 in The Gold Book.

• Elimination of "Stretch" IRA

Beginning for deaths after December 31, 2019, the stretch IRA is replaced with a ten year rule for the vast majority of beneficiaries. The rule requires accounts to be emptied by the end of the tenth year following the year of death. There are no annual RMDs. Instead, the only RMD on an inherited IRA is the balance at the end of the 10 years after death. For deaths in 2019 or prior years, the old rules would remain in place.

There are five classes of “eligible designated beneficiaries” who are exempt from the 10-year post-death payout rule and can still stretch RMDs over life expectancy. These include surviving spouses, minor children, disabled individuals, the chronically ill, and beneficiaries not more than ten years younger than the IRA owner.

See Accounts of Deceased IRA Holders and When Benefits Must Begin in The Gold Book.

Updated Life Expectancy Tables

The IRS has issued proposed regulations revising the life expectancy and distribution period tables used for determining required minimum distributions (RMDs) from qualified retirement plans, individual retirement accounts (IRAs), annuities, and other tax-favored employer-provided retirement arrangements. The proposed regulations would affect participants, beneficiaries, and plan administrators of qualified retirement plans and other retirement arrangements, as well as owners, beneficiaries, trustees, and custodians of IRAs and annuities. The updated tables generally are proposed to be applicable for distribution calendar years beginning on or after January 1, 2021.

Plan Amendments

Amendments for any required modifications are not required to be incorporated into the plan document until IRS guidance is published. It is expected that such amendments will be issued to be effective with plan year 2022. At that time, the IRS will provide the date by which amendments must be adopted. See The SECURE Act in The Gold Book.

What's New? 2020 Annual CRA Asset-Size Threshold Adjustments

The federal bank regulatory agencies announced the annual adjustment to the asset-size thresholds used to define small bank, small savings association, intermediate small bank, and intermediate small savings association under the Community Reinvestment Act (CRA) regulations.

The annual adjustments are required by the CRA rules.  Financial institutions are evaluated under different CRA examination procedures based upon their asset-size classification.  Those meeting the small and intermediate small institution asset-size thresholds are not subject to the reporting requirements applicable to large banks and savings associations unless they choose to be evaluated as a large institution.

Annual adjustments to these asset-size thresholds are based on the change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Read more on Bank Size Criteria in The Gold Book.

What's New? Reg. CC

On June 24, 2019, the Consumer Financial Protection Bureau (the Bureau) and the Federal Reserve Board (the Board) jointly announced a final rule amending Regulation CC. The final rule includes the COLA changes required by the Dodd-Frank Act as well as certain amendments made by the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA).

The COLA changes are effective July 1, 2020 and may be found in The Gold Book.

What's New? HMDA Relief

The Consumer Financial Protection Bureau issued a final rule providing relief for smaller institutions from the Home Mortgage Disclosure Act (HMDA) data collection and reporting requirements by extending until Jan. 1, 2022, the current temporary coverage threshold of 500 for open-end lines of credit. The Bureau said it would address permanent relief in a future rulemaking. To read the final rule click here. Read more about HMDA Rules in The Gold Book.

What's New? Annual CRA Asset-Size Threshold Adjustments

The federal bank regulatory agencies announced the annual adjustment to the asset-size thresholds used to define small bank, small savings association, intermediate small bank, and intermediate small savings association under the Community Reinvestment Act (CRA) regulations.

The annual adjustments are required by the CRA rules.  Financial institutions are evaluated under different CRA examination procedures based upon their asset-size classification.  Those meeting the small and intermediate small institution asset-size thresholds are not subject to the reporting requirements applicable to large banks and savings associations unless they choose to be evaluated as a large institution.

Annual adjustments to these asset-size thresholds are based on the change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Read more on Bank Size Criteria in The Gold Book.

What's New? ADA Releases Technical Assistance Materials Webpage

The Technical Assistance Materials webpage on ADA.gov has been revised to make it more organized and user friendly. Materials are now arranged by the relevant Title of the ADA as well as by subject matter covered in the documents. Check out the new look of the page here. Read more about the Americans with Disabilities Act (ADA) here in The Gold Book.

What's New? Anti-Harassment Policy and Training Effective Date 10/9/18

NYS has issued final guidance on sexual harassment policy requirements effective October 9, 2018. Sexual harassment training requirements are also final and are effective October 9, 2019. Please see The Gold Book chapter New York State, Anti-Harassment Laws for details.

What's New? Beneficial Ownership Rules

Effective May 11, 2018, the Financial Crimes Enforcement Network (FinCEN) issued a final rule on beneficial ownership with respect to customer due diligence requirements.   The final rule requires covered financial institutions to adopt due diligence procedures to identify and verify a legal entity customer’s beneficial owner(s) at the time a new account is opened. Further, financial institutions are required to amend their anti-money laundering (AML) program requirements related to collecting, monitoring, and maintaining this information. 

Please see Beneficial Ownership Rule in the Compliance section of The Gold Book.

HMDA Updated Charts and Timeline

On Sept. 28, 2017, the Bureau updated the 2018 HMDA institutional coverage chart , the 2018 HMDA transactional coverage chart , and the key dates timeline . The updated documents reflect the changes in the Bureau’s 2017 HMDA final rule  amending Regulation C. 

CFPB Issues Reg B Final Rule and Executive Summary

On Sept. 20, 2017, the Bureau issued a final rule to amend Regulation B to allow creditors flexibility in complying with Regulation B in order to facilitate compliance with Regulation C and transition to the 2016 Uniform Residential Loan Application. To support implementation of the rule, the Bureau issued an executive summary. 

Check back soon for notice of updated sections The Gold Book.

What's New? NYS Anti-Terrorism & Money Laundering Regs

New York State requires its financial institutions to adopt anti-money laundering programs, including customer identification and foreign asset controls. Prior to January 1, 2017, compliance with applicable federal requirements (Bank Secrecy Act, USA PATRIOT Act and OFAC) constitutes compliance with the state requirements under Parts 115 and 116 of the General Regulations of the Banking Board. The NYS Department of Financial Services (DFS) has adopted a risk-based anti-terrorism and anti-money laundering regulation that requires institutions to maintain programs to monitor and filter transactions for potential Bank Secrecy Act (BSA) and anti-money laundering (AML) violations and prevent transactions with sanctioned entities. See more in The Gold Book.

What's New? Annual CRA Asset-Size Threshold Adjustments

The federal bank regulatory agencies announced the annual adjustment to the asset-size thresholds used to define small bank, small savings association, intermediate small bank, and intermediate small savings association under the Community Reinvestment Act (CRA) regulations.

The annual adjustments are required by the CRA rules.  Financial institutions are evaluated under different CRA examination procedures based upon their asset-size classification.  Those meeting the small and intermediate small institution asset-size thresholds are not subject to the reporting requirements applicable to large banks and savings associations unless they choose to be evaluated as a large institution.

Annual adjustments to these asset-size thresholds are based on the change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Read more on Bank Size Criteria in The Gold Book.

What's New? IRS Form 1098 Reporting

The Gold Book section has been updated to include changes related to Form 1098 mortgage interest reporting. See Form 1098 under the Reporting Compliance chapter.

Military Lending Act: Examination Procedures, Interpretive Rule, and the FDIC'S Supervisory Expectations

In July 2015, the Department of Defense (DOD) issued a final rule amending the implementing regulations of the Military Lending Act of 2006 (MLA). The final rule expands specific protections provided to servicemembers and their dependents under the MLA and addresses a wider range of credit products than the DOD's previous regulation.

In August 2016, DOD published an interpretive rule in the Federal Register that provides guidance on certain questions received regarding compliance with the July 2015 Final Rule. The DOD issued its interpretive rule to inform the public of its views. The interpretive rule, comprised of 19 questions and answers, does not substantively change the regulation implementing the MLA, but rather merely states DOD's preexisting interpretation of an existing regulation.

The FDIC has released examination procedures that reflect the Department of Defense's (DOD) 2015 amendments to the implementing regulations of the Military Lending Act of 2006 (MLA).

See The Gold Book, Military Lending Act for details.

What's New? HMDA Rules

Significant amendments have been made to the collection and reporting of applicant or borrower information. The majority of the provisions will be effective on January 1, 2018. Covered institutions will collect the new HMDA information in 2018 and report it by March 1, 2019. Until final rules are issued the following rules apply. 

For more information go to The Gold Book, Home Mortgage Disclosure Act.

What's New? Military Lending Act

On July 21, 2015, the Department of Defense (DOD) issued a final rule amending the John Warner National Defense Authorization Act  called the “Military Lending Act” (MLA). The final rule expands coverage of the current regulation to include many non-mortgage related credit transactions covered by the Truth in Lending Act (TILA), as implemented by Regulation Z. It provides safe harbor methods for identifying borrowers covered by the final rule, prohibits the use of certain practices, and amends the content of the required disclosures. The final rule also contains new provisions about administrative enforcement, penalties and remedies. 

See The Gold Book: John Warner National Defense Authorization Act and Military Lending Act.

What's New? Federal Holiday Schedule

The Federal Holiday Schedule has been updated through 2019. Click here to view.

What's New? CRA Asset Size Threshold Change

On December 22, 2015, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency announced the annual adjustment to the asset-size thresholds used to define 'Small Bank,' 'Small Savings Association,' 'Intermediate Small Bank,' and 'Intermediate Small Savings Association' under the CRA Regulations. See Bank Size Criteria.

What's New? Threshold for Smaller Loan Exemption from Appraisal Requirements for Higher-Priced Mortgage Loans

The Consumer Financial Protection Bureau (CFPB), Federal Reserve Board, and Office of the Comptroller of the Currency (OCC) announced that the threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans during 2016 will remain $25,500.

Click here to read more in The Gold Book. 

New HMDA Rules

The CFPB recently published the final rule to Regulation C, which implements HMDA. The new rule makes changes to covered institutions and transactions. The new rule also changes the information institutions collect and report about mortgage loans and applications. Stay tuned for Gold Book updates concerning the final rule and its implementation.