Understanding Employee Benefits

New DOL Electronic Disclosure Safe Harbor Offers Relief for Retirement Plans

The Department of Labor has issued final regulations that will enable employers to electronically provide required information and documents to more plan participants.  Although employers have been able to electronically provide some documents and information to some participants under existing rules, use of electronic delivery was limited because of an... Read More

Topics: Retirement Plans

IRS Answers Some FAQs on Coronavirus-Related Distributions and Loans

On May 4, 2020, the IRS provided guidance on coronavirus-related distributions (“CRDs”) and coronavirus-related loans and loan payment delays (“CR Loan Provisions”) in the form of FAQs.  In those FAQs, the IRS answered a few of the questions that many practitioners, administrators, and employers have been asking: Does a spouse’s... Read More

Topics: Retirement Plans

Multiemployer Pension Reform Likely on the Table in Phase 4 Coronavirus Bill

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Since the coronavirus (COVID-19) first emerged as a serious health emergency, Congress has moved quickly to pass three major pieces of legislation designed to address the public economic and health crises caused by the pandemic. According to reports, House Democrats have prioritized multiemployer pension reform in previous negotiations regarding coronavirus... Read More

Topics: Multi-employer Plans, Retirement Plans

CARES Act offers Opportunity for Tax-Free Student Loan Repayment Available until 2020 Year-End

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On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which addresses the public economic and health crisis related to the 2019 novel coronavirus (COVID-19). The CARES Act includes a temporary provision that allows employers to make tax-free student loan payments... Read More

Topics: Compensation Questions, Errors & Omissions Liability, Payroll, Uncategorized, Welfare Plans

SECURE Act Includes Retirement Plan Changes, Some Effective Immediately

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On December 19, 2019, the President signed the SECURE Act. SECURE includes, among other things, provisions that are intended to make retirement plans more accessible, especially to smaller employers, address changing workforce demographics, address nondiscrimination issues facing defined benefit plans, encourage guaranteed income options under defined contribution plans, and increase... Read More

Topics: Fiduciary Guidance, Form 5500s, Retirement Plans, Uncategorized

IRS Memorandum Limits Exceptions for Retaining Signed Retirement Plan Documents – (excuse that “my dog ate my plan documents” will not always work)

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Generally, for a tax qualified retirement plan to be adopted, the plan document must be signed and dated by the sponsoring employer and retained. However, in Val Lanes Recreation Center Corp. v. Commissioner of Internal Revenue, T.C. Memo 2018-92, the Tax Court found that the employer’s failure to produce a... Read More

Topics: Retirement Plans

Annual Limits on Qualified Plans for 2020

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On November 6, 2019, the Internal Revenue Service (IRS) released Notice 2019-59, which sets forth the 2020 cost-of-living adjustments affecting dollar limits on benefits and contributions for qualified retirement plans. The IRS also announced the health savings account (HSA) and high deductible health plan (HDHP) annual deductible and out-of-pocket expense... Read More

Topics: Cafeteria Plans, Health Plan, Retirement Plans

IRS Final Regulations Amend Hardship Distribution Rules for 401(k) and 403(b) Plans

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On September 23, 2019 the Internal Revenue Service (“IRS”) issued final regulations amending the rules for hardship distributions from 401(k) and 403(b) plans (the “Final Regulations”). The Final Regulations modify the hardship requirements to reflect statutory changes and directives introduced by the Bipartisan Budget Act of 2018, the Tax Cuts and... Read More

Topics: Errors & Omissions Liability, Retirement Plans