The Internal Revenue Service (IRS) has released Rev. Proc. 2024-40, which contains inflation-adjusted items for 2025 in over 60 provisions of the Internal Revenue Code. These changes will impact taxpayers filing tax returns in 2026. The following changes are of particular importance to plan sponsors and employers. Health Flexible Spending Cafeteria Plans RP 2024-40 increases the dollar limitation for Read More

The outcome of the current presidential race, along with control of both houses of Congress, will have a significant impact on many healthcare and employee benefits issues, at least for the next four years. These issues include the Affordable Care Act (ACA), Medicare, Medicaid, prescription drug pricing, and transparency in healthcare costs, among other issues. No matter which political party controls the White Read More

Section 301(b) of Division T of the SECURE 2.0 Act added provisions to the Internal Revenue Code (IRC) to address the requirements of inadvertent overpayments and their treatment as eligible rollover distributions. The Internal Revenue Service (IRS) issued Notice 2024-77 on October 15, 2024, providing important guidance and clarification on treating inadvertent benefits overpayments. The Notice also contains guidance Read More

The Internal Revenue Service (IRS) offers administrative tax relief in various forms to victims living in areas that the Federal Emergency Management Agency (FEMA) or the White House has declared a major disaster area. In August, the IRS extended relief to those affected by Tropical Storm Debby and in September to those affected by Hurricane Helene. An IRS announcement dated October 11, 2024, states that the agency Read More

A Florida federal district court has upheld an independent dispute resolution (IDR) award to an air ambulance provider under the No Surprises Act (NSA) that Congress enacted as part of the Consolidated Appropriations Act, 2021. The air ambulance provider transported a patient from the Dominican Republic to Florida. Thereafter, the provider sought reimbursement from a company licensed to cover travel health insurance Read More

The U.S. Court of Appeals for the Second Circuit zeroed in on potential defects in jury instructions as it heard oral arguments in an appeal of a class action lawsuit against Yale University, signaling that it may order a new trial. Employees alleged that Yale violated its fiduciary duty under ERISA by mismanaging their retirement plan. Although the jury found that Yale had violated its fiduciary duty and caused a Read More

The U.S. Department of Labor (DOL), the U.S. Department of Health and Human Services (HHS), and the Department of Treasury recently issued final rules under the Mental Health Parity and Addiction Equity Act (MHPAEA). The final rules focus on nonquantitative treatment limitations (NQTLs), and the comparative analysis requirement established in the CAA, 2021. These rules provide new definitions, revise existing Read More

The U.S. Department of Labor’s (DOL’s) Employee Benefits Security Administration (EBSA) has issued DOL Compliance Assistance Release No. 2024-01. This compliance assistance release confirms that the agency’s 2021 updated guidance on cybersecurity applies to all employee benefits plans, including all health and welfare plans and retirement plans. EBSA has specifically updated its cybersecurity guidance, which Read More

The Investor Advisory Committee (IAC) of the U.S. Securities and Exchange Commission (SEC) recently held a public hearing featuring a panel discussion on investment advice. Established by the 2010 Dodd-Frank Act, the IAC recommends regulatory actions to the SEC. After the public hearing, various IAC committee members expressed a willingness to recommend that the SEC take action to clarify fiduciary investment Read More

The California Court of Appeals recently found that a reduction in force (RIF) is not necessarily a sufficient reason to terminate an older worker. As a result, the Court revived a former Pacific World Corp. customer service manager’s age discrimination claim under the California Fair Employment and Housing Act (FEHA). However, the Court affirmed the dismissal of the remaining two claims -- disability discrimination Read More