On June 11, 2020, the IRS issued Notice 2020-46 to address potential tax issues arising from employer leave-based donation programs that help victims of the COVID-19 pandemic in “affected geographic areas” that include all 50 U.S. states, the District of Columbia, and U.S. territories.  Leave donation programs typically allow employees with accrued vacation, sick, or leave time to donate their hours to be used by Read More

The U.S. Department of Labor (DOL) has issued an information letter stating that a fiduciary that complies with the requirements of Title I of the Employee Retirement Income Security Act of 1974 (ERISA) may include private equity as an investment option for 401(k) plan participants. In its information letter, the DOL noted that, “Private equity investments...present additional considerations to Read More

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27, 2020, to deliver financial relief to American workers and businesses facing financial hardship from the COVID-19 pandemic. Going forward, there are some important considerations for companies involved in M&A transaction negotiations, especially when it comes to how CARES Act relief provisions affect employee Read More

On June 1, 2020, the U.S. Supreme Court held in Thole v. U.S. Bank, N.A., that defined benefit plan participants lack standing under Article III to pursue claims of fiduciary breach when the plan is fully funded.  Background Plaintiffs were fully vested retired participants in U.S. Bank’s defined benefit retirement plan and filed suit against the bank and other plan fiduciaries for allegedly mismanaging plan Read More

Recently, the IRS issued Notice 2020-50 to update and clarify certain provisions of Section 2202 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which deals with the tax treatment of coronavirus-related distributions from eligible retirement plans for qualified individuals. Under the CARES Act, retirement plan participants may borrow up to $100,000 or 100% of their vested balance, whichever Read More

The IRS has issued an internal procedural update that shortens the deadline for depositing employment taxes for certain stock-settled awards from three business days after exercise (T+3) to two business days after exercise (T+2), and expands the application of the administrative waiver of late employment tax deposit penalties for stock options to stock-settled restricted stock units (RSUs) and stock-settled Read More

In response to the COVID-19 pandemic, the IRS has provided temporary relief from the requirement that spousal consent for retirement plan loans, distributions, and beneficiary designations take place in the physical presence of a plan representative or notary public.  IRS Notice 2020-42 provides for the physical presence requirement to be deemed satisfied during calendar year 2020 under the following Read More

On June 29, 2020, the Department of Labor (DOL) released a proposed prohibited transaction exemption for investment advice fiduciaries that is based on the Department’s temporary policy adopted after a 2018 ruling by the Fifth Circuit Court of Appeals vacated the DOL’s 2016 fiduciary rule package. The proposed exemption would allow investment advice fiduciaries — registered investment advisers, broker-dealers, Read More

As employers navigate ways to incentivize and retain employees in this rapidly changing business environment, below are some key considerations when addressing the impact of COVID-19 on executive compensation. Equity Award Vesting and Furloughs Equity awards are often subject to vesting based on a predetermined length of service as defined in an equity plan or award agreement. COVID-19-related furloughs may Read More