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

  The Patient-Centered Outcomes Research Institute (PCORI) fee that employers thought was dead as of last September is back, thanks to legislation passed in December 2019 that extended it for an additional 10 years. The Bipartisan Budget Act of 2019 reinstated the PCORI annual filing and fees for another decade, through 2029. This means that self-funded plan sponsors’ and insurers’ PCORI filings and fees Read More

The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) includes three sections designed to encourage more employers to adopt retirement plans, and it simplifies a few issues that have bedeviled plan sponsors and taxpayers for years.  Among these issues are: Whether participants in defined contribution plans will be able to save enough to sufficiently fund their living expenses in Read More

A recent New York Times article highlights what it calls a “tidal wave of business bankruptcies” that are coming due to financial fallout from the COVID-19 pandemic. A number of high profile businesses have already declared bankruptcy, including J.C. Penney, Hertz, J. Crew, Neiman Marcus, 24-Hour Fitness, Borden Dairy, and Pier 1 Imports. More are sure to follow. Typically, a business will file either Chapter 7 or Read More

The primary purpose of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) is to provide financial relief to Americans suffering from the financial fallout of the COVID-19 pandemic.  Among the many provisions in the CARES Act are several temporary changes that relax IRS rules for retirement account withdrawals and loans for qualified individuals impacted by COVID-19.  Restrictions on Eligibility Read More