The IRS issued proposed regulations under Section 4960 of the Internal Revenue Code of 1986, as amended (the “Code”), which was added as part of the Tax Cuts and Jobs Act. The proposed regulations published in the Federal Register on June 11, 2020, largely follow the IRS interim guidance under
Articles about the Employee Retirement Income Security Act (ERISA) and other issues relating to employee benefit topics
OCR’s Relaxed Enforcement of HIPAA During COVID-19 Paves The Way For Increase in Telehealth Services
As the COVID-19 pandemic continues to spread across the country, doctors, dentists, therapists and other healthcare providers have turned to telehealth use with their patients by way of videoconferencing applications such as Zoom, Skype and WebEx. The Office of Civil Rights and the Department of Health and Human Services (“OCR”)
PCORI Fee Reminders and Clarifications
IRS Notice 2020-44 was issued this week as a reminder that Patient-Centered Outcomes Research Institute (PCORI) fees were extended under the Further Consolidated Appropriations Act of 2020 and are now not scheduled to expire until plan years ending after September 30, 2029. Annual PCORI fees will still need to be
IRS Provides Relief for Retirement Plan Elections and Consents Required to be Notarized or Witnessed
The Internal Revenue Service has relaxed spousal notarization and plan representative witness requirements in 2020 for retirement plan elections in IRS Notice 2020-42. The notice addresses the physical presence requirement for notarization or witnessing of certain plan elections and provides temporary relief permitting remote notarization and witnessing subject to certain
Supreme Court: Plaintiffs Who Suffered No Injury Lack Standing to Sue under ERISA
The plaintiffs’ expectations surely suffered a blow after reading the Supreme Court’s initial observation in their case: “If [the plaintiffs] were to lose this lawsuit, they would still receive the exact same monthly benefits that they are already slated to receive, not a penny less. If [the plaintiffs] were to win this lawsuit, they
Expanding the Safe Harbor for (Certain) Electronic Disclosures
We previously wrote about the Department of Labor’s proposed expansion of its safe harbor for electronic delivery of certain retirement plan disclosures required under ERISA. The wait is finally over, with publication of the final rule (the “New Rule”) helped along by the DOL’s desire to alleviate some of the
Suspending Safe Harbor Contributions Mid-Year: A Primer for Employers
As cash flow and decreased revenue concerns rise, many employers are looking for ways to cut costs. This article generally identifies the circumstances that allow a safe harbor 401(k) plan sponsor to suspend safe harbor contributions and the related consequences of such suspensions.
DOL Finally Relaxes Its Electronic Delivery Rule—But Only for Retirement Plans
On May 21, 2020, the U.S. Department of Labor (DOL) announced publication of its long-awaited guidance on electronic participant disclosures. The good news is that the DOL has taken a step in the right direction in easing some of the difficulties that were present in the prior electronic communications safe
Reopening Health Plan Elections Mid-Year? IRS Leaves it up to Employers
On May 12, 2020, the IRS issued guidance temporarily suspending long-standing federal regulations that limit when an employee can make mid-year changes to employer-sponsored health coverage.
Under the normal IRS rules, employees elect health coverage before each plan year during open enrollment, and may not change those elections except
IRS and DOL Issue Sweeping Deadline Relief for Benefit Plan Participants and Plan Sponsors
In accordance with emergency powers granted in the wake of the COVID-19 pandemic, the Internal Revenue Service (IRS) and US Department of Labor (DOL) recently issued guidance temporarily extending a number of benefit plan-related deadlines and providing other relief for participants and plan sponsors having difficulty complying with these
IRS’s New 2021 HSA and HDHP Limits
On May 20, 2020, in Revenue Procedure 2020-32, the Internal Revenue Service (IRS) announced the annual contribution limits for 2021 for health savings accounts (HSA). The IRS also announced the 2021 definitional limits per Internal Revenue Code Section 223 for high deductible health plans (HDHP).
COVID-19 And Late Remittances of Employee Deferrals to 401(k) Plans
Many employers facing economic challenges because of COVID-19 have considered several possibilities for reducing their contributions to their 401(k) plans. Whether freezing safe harbor matching or nonelective contributions or deciding against making discretionary matching and/or profit-sharing contributions, the goal has been the same: reduce their employee benefits costs.
What many
IRS Reverses Course on Employee Retention Credit for Qualified Health Plan Expenses
The IRS has changed its position and will allow employers to receive a tax credit for paying health care plan premiums for employees on furlough.
Northrup Grumman Agrees to Settle 401(k) Excessive Fee Suit
Northrop Grumman has agreed to pay $12,375,000 to settle a class action brought under the Employee Retirement Income Security Act (“ERISA”) by participants in its 401(k) plan. The parties reached the initial terms of this settlement last year minutes before the start of the trial.
In Private Letter Ruling, IRS Approves 401(k) Student Loan Repayment Benefit
The IRS has released a Private Letter Ruling (“PLR”) 201833012, in which it approved a student loan repayment program as a 401(k) benefit. Although the PLR can only be applied by the taxpayer/plan sponsor requesting it, it is a promising development for employers seeking to provide stronger incentives for a workforce increasingly saddled with student loan debt.
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