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Total Articles: 10

IRS Announces New Retirement Plan Guidance for Voluntary Correction Program (VCP) Applications

For HR offices, December is typically a time to recover from open enrollment, tie up loose ends, and look forward to 2019. Lost in the busyness of the last few months may have been some retirement plan guidance from the Internal Revenue Service regarding its Employee Plans Compliance Resolutions System (EPCRS). In Revenue Procedure 2018-52 (September 28, 2018), the IRS has outlined new filing requirements for its Voluntary Correction Program. This guidance essentially amends and restates Rev. Proc. 2016-51, which, as described below, will have limited applicability after December 31, 2018.

IRS Extends Deadline to Provide Forms 1095-B and 1095-C to Individuals

The Patient Protection and Affordable Care Act (ACA) requires applicable large employers, as well as all employers that sponsor self-funded health plans, to report certain health plan coverage information. Applicable large employers must report the offers of coverage they extend to full-time employees and their dependents. Employers that sponsor self-funded health plans must report the months of coverage for individuals who are actually enrolled in coverage. Employers must report this information to the relevant individuals and the Internal Revenue Service (IRS) via IRS Forms 1094-B, 1095-B, 1094-C, and 1095-C.

Benefits Update (No. 4, December 2018)

Employer-sponsored student loan repayment programs are an effective way to attract highly educated employees with student loan debt. Traditional student loan repayment programs—in which employers give a lump sum or reimburse employees for payments toward their student loans—have grown significantly in popularity over the last decade. However, these programs are often expensive to maintain because the payments are afforded no special treatment under the Tax Code. As a result, benefits paid under the program generally constitute additional taxable income to the employee.

“Hard[ship] to Handle”?

Otis Redding and the Black Crowes may have proclaimed themselves “hard to handle now,” but thanks to recent guidance from the Internal Revenue Service (IRS), hardship distributions from 401(k) plans are a bit less hard to handle, now.

IRS Announces Filing Extension for Furnishing 2018 Forms 1095-B and 1095-C and Continued Good Faith Transition Relief

In IRS Notice 2018-94, the IRS announced an extension for furnishing 2018 IRS Forms 1095-B (Health Coverage) and 1095-C (Employer-Provided Health Insurance Offer and Coverage), from January 31, 2019, to March 4, 2019. The IRS issued this extension in response to requests by employers, insurers, and other providers of health insurance coverage that additional time be provided to gather and analyze the information required to complete the Forms and is largely identical to the extension the IRS provided for furnishing the 2016 and 2017 Forms. Despite the extension, the IRS encourages employers and other coverage providers to furnish the Forms as soon as possible.

IRS Proposed Regulations Implementing Changes To Hardship Distribution Rules

Earlier this year we reported on legislative changes that modified the requirements related to hardship distributions from 401(k) plans. Recently, the IRS issued proposed regulations that if finalized will implement those changes.

IRS Releases 2019 Inflation Adjustments to Fringe Benefits and Income Taxes

The IRS has released Revenue Procedure 2018-57, which lists the inflation adjustments for a variety of employer-provided fringe benefits. Also included in the revenue procedure are adjustments to the standard deductions and personal income tax rate brackets.

The Saga Continues for Multi-Employer Pension Funds

This is another blog on our monitoring the status of defined benefit multi-employer pension funds. Since this author last wrote to you, it has been revealed that the Central States Pension Fund is scheduled to become insolvent sometime in 2025. Worse yet, it has been announced that the multi-employer fund of the Pension Benefit Guaranty Corporation (“PBGC”) which was structured to assist insolvent multi-employer pension funds is also projected to run out of money in 2025.

IRS Publishes Pension Plan Limitations for 2019

On November 1, 2018, the Internal Revenue Service (IRS) announced cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for the 2019 tax year. These limits include both employee and employer contribution limits. The list below details some of the key limit increases and those limits that remain unchanged effective January 1, 2019:

Fifth Circuit Opines on when Claims may be Properly Maintained under ERISA § 502(a)(1)(B) Versus § 502(a)(3)

The U.S. Court of Appeals for the Fifth Circuit recently addressed “the labyrinthine complexities of ERISA law and practice.” Manuel v. Turner Industries Group, LLC, et al., No. 17-30835 (5th Cir. Oct. 1, 2018). In this wide-ranging opinion, the Fifth Circuit highlighted the importance of identifying the underlying purported injury to understand whether an ERISA § 502(a)(3) claim (a claim for equitable relief) is duplicative of a claim that could have been brought under ERISA § 502(a)(1)(B) (a claim to recover benefits or enforce a right under the terms of a plan), in which case it should be dismissed.