SECURE Act/Inflation Adjustments Act Leads to Significant Increase in Benefit Plan Penalties

The SECURE (Setting Every Community Up for Retirement Enhancement) Act of 2019 provided many incentives for Americans to save for retirement, including greater flexibility in contributions, tax credits for new plans, automatic enrollment capability, and more.  However, these important benefits also come with a potential price to pay: a substantial increase in penalties for failure to file several forms in a timely Read More

SECURE Act’s Increase in RMD to Age 72 May Lead to Avoidance of Net Investment Income Tax

Prior to the enactment of the SECURE (Setting Every Community Up for Retirement Enhancement) Act, people invested in qualified retirement plans and IRAs were required to begin taking required minimum distributions (RMDs) from those plans after they turned 70 ½. Under the SECURE Act, the age for beginning RMDs is now 72 for all those who turn 70 ½ after December 31, 2019.  Calculating the amount of those RMDs will Read More

SECURE Act and the Expanded Flexibility of Lifetime Income Annuity Options: Important Considerations

Three provisions in the Setting Every Community Up for Retirement Enhancement Act (the “SECURE Act”) aim to encourage adoption of guaranteed life income products by defined-contribution plans and participants by addressing perceived shortcomings of these products by DC plan sponsors.  These provisions also aspire to increase awareness among participants of the importance of viewing retirement account balances as an Read More

SECURE Act In; Three ACA Health Taxes Out!

Three taxes created to fund the Affordable Care Act (ACA) have been repealed, thanks to the Setting Every Community Up for Retirement Enhancement Act (the “SECURE Act”) of 2019. ACA Excise Tax on High-Cost Employer Medical Plans Set to take effect in 2022, the ACA excise tax on high-cost employer medical plans -- also known as the “Cadillac Tax” -- set a cap on tax deductions taxpayers could claim based on their Read More

SECURE Act Allows for ADP Failure Relief by Retroactive Adoption of Nonelective Contribution Safe Harbor Retirement Plan Status

Signed into law in late December 2019, the Setting Every Community Up for Retirement Enhancement Act (the “SECURE Act”) of 2019 includes a number of provisions designed to increase access to tax-advantaged accounts for American workers struggling to save for retirement. According to the U.S. Bureau of Labor Statistics, approximately 55% of U.S. employees participate in employer-sponsored retirement plans.  However, Read More

Agencies Extend Important Health and Welfare and Retirement Plan Deadlines

By Anne Tyler Hall and Robert Forman, Hall Benefits Law On April 28th, the Department of Labor’s (“DOL”) Employee Benefits Security Administration (“EBSA”) and the Department of Treasury and Internal Revenue Service issued a joint rule (the “Rule”) and notice (EBSA Notice 2020-01 or the “Notice”) announcing relief from certain pre-established deadlines for group health plans, other welfare benefit Read More

One of Congress’s “Offset” to Pay for the SECURE Act: Tenfold Penalty Increase for Retirement Plan Filing and Notice Failures

In order to help pay for the changes that the SECURE Act will bring to the retirement system, as well as to increase compliance with filing reports and providing notices, the legislature also included a significant increase in penalties for late filing of plan returns and plan notices.  These new penalties apply to all returns, plan statements, and require plan notices that must be provided after the end of Read More

IRS Offers Form 5500 Deadline Relief for Taxpayers with Filing Deadlines Before July 15, Provides No Relief for Many

Amidst the Coronavirus pandemic and resulting business disruption, many employers have been concerned about meeting the Form 5500 filing deadline for their retirement and health and welfare benefit plans. Jointly developed by the IRS, Department of Labor, and Pension Benefit Guaranty Corporation, the Form 5500 returns are intended to satisfy to satisfy annual reporting requirements under ERISA and the Internal Read More

SECURE Act Initiates Seminal Retirement Plan Change: Prohibition on Exclusion of Part-Time Workers

The SECURE Act, signed into law at the end of 2019, brought several significant changes to retirement planning.  A major goal of the legislation was to enable and encourage the American worker to save for retirement.  One significant change is that businesses are now required to allow long-term, part-time employees to participate in employer-sponsored 401(k) plans. Part-Time Workers Currently, businesses are Read More

SECURE Act’s Increase in RMD to Age 72 Requires Immediate Communication and Coordination by Retirement Plan Sponsors

At the end of last year, the SECURE Act brought many changes to retirement plans including raising the required minimum distribution (RMD) age to 72.  Previously, the RMD age was 70 ½.  The change applies to individuals are who meet the RMD age requirement after December 31, 2019.  This change was designed to acknowledge the fact that many Americans are living longer and having longer productive years. In addition Read More