CARES Act Expands Telehealth Coverage in HDHPs

Included in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) are several provisions dealing with the expansion of telehealth services coverage, including for individuals currently enrolled in high deductible health plans (HDHPs): Section 3701 Participants in HDHPs -- including those with HSAs -- are no longer required to meet their deductibles before gaining access to telehealth services.  Read More

IRS Provides COVID-19 403(b) Plan Relief

Due to the COVID-19 pandemic, the IRS has extended the remedial amendments deadline for Section 403(b) plans by three months, from March 31, 2020, to June 30, 2020. In September 2019, the IRS issued Revenue Procedure 2019-39 that set remedial amendment periods for making amendments to 403(b) plans.  That guidance was updated by the IRS’ recent deadline extension announcement and includes the following: New Read More

Benefit Plan Cost Mitigation Alternatives in a COVID-19 Economic Downturn

As businesses struggle to come to grips with conducting “normal” operations in a “new normal” environment, the issue of cost reduction will certainly be on the table for many companies.  One area that companies will likely be examining to reduce costs is employee benefits; here are some options for consideration: Set priorities.  In looking for ways to reduce costs for employee benefit plans, you should look first Read More

CARES Act Provides Loan Forgiveness for Company Retirement and Health Plan Expenses

Signed into law on March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (CARES Act) features one-time stimulus payments to taxpayers, loans and grants to small businesses, and additional funding for health care and unemployment insurance. Two of the largest small business financial relief programs include the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) Program.  Read More

COVID-19 Considerations for Incentive Compensation

The COVID-19 outbreak in the U.S. coincided with the timeframe for annual incentive awards for many companies and threw a sizable wrench into the decision-making process on how to structure compensation packages going forward.  As companies 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 Read More

Supreme Court Stipulates Actual Knowledge Required in Fiduciary Breach

A unanimous U.S. Supreme Court decision in Intel Corp. Investment Policy Committee v. Sulyma affirmed a Ninth Circuit ruling that a plaintiff must have actual knowledge of a fiduciary breach for ERISA’s three-year limitation period to apply. Under ERISA, claims for breach of fiduciary duty are required to be brought within the shorter of: 6 years after occurrence of the alleged breach; 3 years after a Read More

CMS Proposes Steep Penalties for Medicare Secondary Payer Noncompliance

New proposed regulation by the Centers for Medicare & Medicaid Services (CMS) pose significant financial risk for responsible reporting entities that fail to comply with reporting obligations under Medicare Secondary Payer (MSP) laws.  As proposed, the new rule would impose steep penalties on MSP reporting violations that occur following the new rule’s effective date. Background In general, MSP laws (1) prevent Read More

Time to Review Your Retirement Plan Beneficiary Designations! Considerations Post-SECURE Act

The SECURE Act became effective on January 1, 2020, and it has dramatically changed the landscape for retirement account estate planning by implementing new rules regarding the inheritance of retirement accounts by a deceased plan participant’s beneficiaries. One of the biggest changes is the elimination of lifetime stretch rules.  Where previously designated beneficiaries were able to calculate the required minimum Read More

IRS Confirms That Cafeteria Plan Not Required to Allow Mid-Year Election Change

In IRS Information Letter 2019-0028, the IRS reiterated that while participants in a Section 125 cafeteria plan may change their pre-tax contribution elections due to the occurrence of certain qualifying events, there is no requirement for plans to make this option available.   Cafeteria plan qualifying events If allowed for in its provisions, a cafeteria plan may permit participants to make a mid-year Read More

Tax Court Agrees with IRS that ESOP with Operational/Form Errors is Non-Qualified

The U.S. Tax Court has found that an Iowa corporation’s employee stock ownership plan (ESOP) and employee stock ownership trust (ESOT) do not qualify as retirement plans under federal tax law due to operational and form deficiencies. The case -- Ed Thielking Inc. v. Commissioner of Internal Revenue -- involved an S corporation incorporated on March 10, 2006, with Ed Thielking as sole shareholder.  Ed also served as Read More