Cybersecurity threats are becoming ubiquitous in today’s technology-driven, cloud-based society and even more so now as the COVID-19 pandemic has fundamentally changed the way people work, communicate, and save. No information is safe and no financial assets, including your 401(k) plan, are…
In 2017, the Pension Benefit Guaranty Corporation (“PBGC”) established the PBGC Defined Contribution Missing Participants Program (the “Program”) for terminated defined contribution plans (e.g., 401(k), profit sharing and stock ownership plans). The Program was established to hold retirement…
COBRA Continuation Coverage
The American Rescue Plan Act (“ARPA”) impacts employers sponsoring certain group health plans in multiple ways, but the primary impact is to: (1) provide a six-month premium subsidy for selected COBRA qualified beneficiaries and (2) create special enrollment rights for…
Is it time you consider amending your plan document to provide a waiver of class actions and mandatory arbitration? We first visited this issue one year ago after a 2019 federal court decision approved use of class action waiver and mandatory arbitration provisions as a means to reduce potential…
On October 26, 2020, the Internal Revenue Service issued Notice 2020-79 to announce the cost-of-living adjustments applicable to pension and retirement plan dollar limitations for the 2021 tax year – most of which will remain unchanged from 2020. Additionally, the Social Security Administration has…
On May 21, 2020, the Department of Labor (DOL) published its final rule establishing an alternative safe harbor method of delivery of electronic disclosures by retirement plan administrators. The Alternative Safe Harbor allows employers to post retirement plan disclosures online or deliver them to…
When preparing this Alert, I recalled a presentation I did in 2008 called “Dealing with Down Times in an ESOP Company.” Well, here we are 12 years later, but the impact of the COVID-19 pandemic on many ESOP companies is even worse than the 2008 recession.
In addition to the difficult issues faced by…
Overview
On May 12, 2020, the IRS issued Notice 2020-33, which (i) increases the carryover limit for flexible spending arrangements (“FSAs”) to $550, and (ii) clarifies the timing for reimbursement of individual health coverage premiums under certain tax-favored arrangements. This guidance was…
Overview
On May 12, 2020, the IRS issued guidance in response to the COVID-19 pandemic which provides flexibility during calendar year 2020 for employer-sponsored health coverage, health flexible spending arrangements (“FSAs”), and dependent care assistance programs (“DCAPs”). IRS Notice 2020-29…
Overview
On April 29, 2020, the U.S. DOL, Treasury Department and the IRS issued deadline relief and other guidance to aid employee benefit plans and plan participants impacted by the COVID-19 pandemic. The guidance extends certain timeframes affecting participants’ rights to healthcare coverage,…
An employer seeking to provide additional financial support to employees during the COVID-19 pandemic may want to consider a “qualified disaster relief payment” program. Qualifying disaster relief payments are not only tax-free to employees in most cases, but are also fully tax-deductible to the…
The IRS provided special relief from the April 15, 2020, Federal income tax return filing and payment deadline in response to the ongoing COVID-19 emergency, in Notices 2020-18 and -17. That relief allows many individuals and businesses until July 15, 2020, instead of April 15, 2020, to file their…
