Regulatory Announcements

Kim Collinsworth | July 9, 2020

Regulatory Announcements

GOLDPoint Systems provides the following information concerning changes to government regulations that may affect your financial institution.

Health Savings Account 2021 Limits Released

The Internal Revenue Service (IRS) has issued Revenue Procedure 2020-32, which provides the updated Health Savings Limits for the 2021 calendar year.

  • Self/individual insurance coverage. The current 2020 limit of $3,550.00 will be increased to $3,600.00 beginning 2021. No change was made to the age 55 or older catch-up limit of $1,000.00.
  • Family insurance coverage. The current 2020 limit of $7,100.00 will be increased to $7,200.00 beginning 2021. No change was made to the age 55 or older catch-up limit of $1,000.00.

Federal Reserve Board Amends Regulation D

The Federal Reserve board has changed the rule on transfers from savings deposits. The following information is quoted from an article dated April 24 on the Federal Reserve website:

The Federal Reserve Board on Friday announced an interim final rule to amend Regulation D (Reserve Requirements of Depository Institutions) to delete the six-per-month limit on convenient transfers from the "savings deposit" definition. The interim final rule allows depository institutions to immediately suspend enforcement of the six-transfer limit and to allow their customers to make an unlimited number of convenient transfers and withdrawals from their savings deposits at a time when financial events associated with the coronavirus pandemic have made such access more urgent.

The regulatory limit in Regulation D was the basis for distinguishing between reservable "transaction accounts" and non-reservable "savings deposits." The Board's recent action reducing all reserve requirement ratios to zero has rendered this regulatory distinction unnecessary.

Concurrently, the Federal Reserve is making temporary revisions to the FR 2900 series, FR Y-9, and FR 2886b reports to reflect the amendments to Regulation D.

https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200424a.htm

No programming changes are needed at this time. GOLDPoint Systems recommends you do the following to handle this regulatory change for your deposit accounts:

  • Transaction Conditions: Review Transaction Conditions by going to Deposits > Definitions > Transactions Options > Transaction Condition Overrides tab in CIM GOLD. Review and change Transaction Condition 50 (MMDA/SVGS Exceeds # of Cks/Wdrs/Xfrs) to allow transactions to process over the transaction limit. Also review Tran Condition 12 (Exceeds no. of checks per cycle limit), 13 (Exceeds no. of deposits/cycle limit), 14 (Exceeds no. of withdrls/cycle limit), 15 (Exceeds no. of transfers/cycle limit), and 32 (Exceeds no. of OTC checks/cycle limit), and make changes if needed.
  • Service Charges: Review Service Charges tied to MMDA/Savings accounts. We recommend you just change the charge amount on any service charges affected to $0.00. This will be the quickest and easiest way to affect all the charges and not have to make changes at the account level. Service charges are set up on the Deposits > Definitions > Service Charges screen.
  • Event Letters: Go to Deposits > Definitions > Event Setup and uncheck the MMDA Limit Exceeded option. Or you can leave this setting on and just not print/mail the letters that are produced.
  • Platform: If you would like to add any wording to your new account disclosures, please submit a work order with the requested changes.
  • If we receive additional guidance on disclosures, we will pass on that information.

Please keep notes of all changes that are made at this time.

 

Standard 2020 Year-end Processing Action Dates, COVID-19 Adjusted

Below is a calendar of year-end processing dates with the COVID-19 related adjustments to the 2019 tax deadlines, along with our regular schedule for 2020. This can be used to help your financial institution better plan for each upcoming IRS processing event. Please contact your Account Manager with questions.

 

 

July 16

If your institution has retirement accounts, 5498, 5498SA, and 5498ESA reports, forms, and transmittals are available in GOLDView Plus by this date. Signed transmittals are due by July 31, 2020.

August 5

IRS GOLD third pull of 1099/1098 corrections and new forms for tax year 2019. (Note: These reports and transmittals are available in GOLDView Plus.) Signed transmittals are due by the 15th.

October 15

Last day to communicate changes to GOLDPoint Systems concerning any tests and year-end processing for tax year 2020. Also, the last day to submit year-end programming changes and requests.

We will be emailing your year-end tax administrator a PDF in September with details for year-end tax processing.

November 1

GOLDPoint Systems begins running and sending year-end IRS tests.

Mid-November

Problems on accounts (such as missing SSNs, hold codes, and more) should have been identified and corrected by institutions.

December 31

Tax year 2020 year-end processing begins.

Kim Collinsworth | July 9, 2020

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