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Showing 25 posts in Employee Benefits.

Special Timing Rule

Special timing tax rule

Are You Withholding Too Much on Nonqualified Deferred Compensation?

If you have a nonqualified deferred compensation plan for select employees, you are probably aware that benefit payments under a properly structured plan are generally not taxable for income tax purposes until the payments are received by the employee. Read More ›

The IRS Backtracks (Again!) on Retiree Lump-Sum Windows

The IRS Backtracks (Again!) on Retiree Lump-Sum Windows

On March 7, 2019, the IRS issued Notice 2019-18, which walked back its prohibition on offering retirees receiving annuity payments a time-limited opportunity to receive their remaining benefit value in one lump-sum payment (a “retiree lump-sum window”). Read More ›

COBRA Noncompliance can be Costly

COBRA Noncompliance can be Costly

Now is a good time for employers to take a look at their COBRA procedures or check with their COBRA vendors about documentation processes given a recent case out of the Southern District of Ohio. Read More ›

IRS Issues Updated Eligible Rollover Distribution Notices - Plans Should Begin Using Immediately

IRS Issues Updated Eligible Rollover Distribution Notices - Plans Should Begin Using ImmediatelyMost retirement plans (including profit sharing, 401(k), and 403(b) plans) are required to provide participants with an explanation of the rules for making an eligible rollover distribution and the tax rules for distributions that are not rolled over. Generally, this rollover notice is part of the participant’s distribution election packet. Read More ›

Changes in Hardship Withdrawal Rules for 401(k) and 403(b) Plans – What Plan Sponsors Need to Know

Changes in Hardship Withdrawal Rules for 401(k) and 403(b) Plans – What Plan Sponsors Need to KnowEmployers who sponsor a 401(k) plan or a 403(b) plan that offers hardship withdrawals have some decisions to make. Read More ›

SURPRISE! You may be liable for union pension plan withdrawal liability

SURPRISE! You may be liable for union pension plan withdrawal liability

When a participating employer stops contributing to, or no longer has an obligation under a collective bargaining agreement (CBA) to contribute to, an underfunded multiemployer (union) pension plan, the employer may be liable for “withdrawal liability” even though it always paid its required annual contributions to the pension plan. Read More ›

Employer Health Plan Litigation over Residential Treatment and Wilderness Therapy

Employer Health Plan Litigation over Residential Treatment and Wilderness Therapy

If you keep tabs on employer group health plan litigation, you have perhaps noticed a substantial increase in lawsuits over plans denying coverage for various types of out-of-network residential treatment and "wilderness therapy" benefits during the last 18 months. Read More ›

IRS Final Rules Make Plan Forfeitures More Useful

IRS Final Rules Make Plan Forfeitures More Useful

The IRS finalized the proposed rules in mid-July. If you have not already done so, now is a good time to consider amending your plan to allow the use of forfeitures for funding safe harbor contributions, QNECs, and QMACs. Read More ›

SEC Liberalizes Rules for Private Company Equity Compensation

SEC Liberalizes Rules for Private Company Equity Compensation

Equity compensation (including options to purchase stock or LLC units, restricted stock or units, and sales of equity to employees) is frequently used by publicly traded and privately held businesses to recruit and retain employees, directors, and other service providers. Businesses using these compensation techniques or equity-based nonqualified compensation deferral programs need to be concerned about compliance with federal and state securities laws for these programs. Read More ›

Department of Labor Issues Final Rule Expanding Access to More Affordable Health Insurance for Small Employers and Sole Proprietors

Department of Labor Issues Final Rule Expanding Access to More Affordable Health Insurance for Small Employers and Sole Proprietors

Department of Labor (DOL) published its Final Rule, adding the new Section 2510.3-5 to CFR Title 29. This new section, promulgated in response to President Trump’s Executive Order 13813, provides an expanded definition of “employer” under Section 3(5) of the Employee Retirement Income Security Act (ERISA), which will change the regulatory requirements for Association Health Plans (AHPs) and likely reduce the cost of providing health care coverage to the association’s members. However, AHPs structured to meet the criteria under the DOL’s sub-regulatory guidance in place prior to the Final Rule can continue under the prior rules, which required a much closer organizational relationship and prohibited coverage of owner employees. Read More ›

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Attorney Spotlight

Jennifer Y. Barber is a member of FBT, focusing on state and local tax, economic incentives and government affairs. She has experience representing local and national clients on tax planning and litigation in administrative and judicial disputes.

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