IRS Provides Guidance on 2019 Updates to Retirement Plans

Over the 2019 calendar year, the IRS, in conjunction with the Department of Labor (DOL), issued guidance on retirement plans that was largely focused on self-correction, determination letters, hardship distributions, and multiple employer retirement plans (MEPs). The following provides an overview of retirement plan governmental guidance during 2019: Self-Correction for Loan Failures: Guidance from April 2019 Read More

January 2020 Newsletter | SUD Confidentiality Final Rule: Your Business Associate Agreement May Need to Be Updated!

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ERISA 403(b) and 457 Plans the Subject of New SEC Investigations

403(b) retirement plans are generally provided for government and public university employees. While like 401(k) plans in some ways, these retirement plans are designed specifically for tax-exempt entities.  457 plans are often offered to government workers and nonprofit groups, and they and allow bigger catch-up contributions than their counterparts. Recently, 403(b) plans have come under fire from lawsuits Read More

401(k) Student Loan Repayment Programs at Top of 2020 IRS Priority List

Student loans remain a major issue for younger professionals. Many of these professionals now choose to prioritize student loan payments over saving for retirement, something that makes sense presently but can lead to financial consequences in the future. When businesses look for ways to attract top talent, they want to be able to address the concerns the talent has by offering benefit packages that are in line with Read More

IRS Clarifies ACA ‘Pay or Play’ Rules to Individual Health Reimbursement Arrangements (IHRAs)

New proposed regulations from the IRS are designed to clarify the nondiscrimination rules pertaining to Individual Coverage Health Reimbursement Arrangements (ICHRAs). Affordable Care Act (ACA) employer shared responsibility provisions apply to all Applicable Large Employers (ALEs), which are generally employers who have an average of 50 or more full-time employees during the preceding calendar year. The new proposed Read More

IRS and DOL Issue Myriad of Changes for MEPs Over the Past Year

Multiple employer plans (MEPs) are a hot topic of conversation both in government and with the small businesses and business associations hoping to benefit from new regulations. Over the course of the past year, new legislation and regulations from the IRS and the Department of Labor (DOL) have created a number of changes for MEPs with which plan sponsors should be familiar. Department of Labor Regulations Final Read More

HSAs: Health Version of a 401(k)?

Many employers offer a variety of health plan options including high-deductible health plans (HDHP) coupled with health savings accounts (HSAs) that employers as well as employees can contribute to. While employees are not required to have an HSA to accompany their HDHP, it can be an excellent way to save for future healthcare costs. Recent research by the Employee Benefits Research Institute (EBRI) shows that in Read More

Recent Incomplete COBRA Notice Leads to Lawsuits Against Three Employers

When an employee leaves a business, they have an opportunity to extend their insurance coverage by taking advantage of the Consolidated Omnibus Budget Reconciliation Act  (COBRA). At the time of their departure, employers are required to give notice, a fairly standard process, that the departing employee is eligible for COBRA coverage, what it would cost, and how to sign up for this coverage. Recently in Florida, Read More

IRS Deems Portion of Ancestry Genetic Testing Payable by Health FSA

Private Letter Rulings from the IRS provide useful guidance on how they view and will handle certain situations, even if identifying information is redacted from the letter. A recent redacted ruling focused on ancestry genetic testing and whether those costs are payable by a Health Flexible Spending Account (FSA). The IRS found that at least a portion of the test could be covered by funds from a Health FSA, as the Read More

403(b) Plan Restatement Deadline Fast Approaching!

403(b) retirement plans are used by a wide variety of non-profits, including large university systems. These plans are required to be restated on IRS-approved documents in order to ensure they meet IRS requirements. The deadline to accomplish this, March 31, 2020, is fast approaching. New Formal Plan Documentation for 403(b) Plans In 2007. new final regulations governing 403(b) plans included sections focused on Read More