The IRS recently released Revenue Procedures 2015-27 and 2015-28, which modify, but do not replace, the existing Employee Plans Compliance Resolution System (EPCRS) in Revenue Procedure 2013-12 (the “2013 Revenue Procedure”). This HR Alert summarizes the changes included in Revenue-Procedure 2015-27. The July HR Alert will include a summary of the modifications set forth in Revenue-Procedure 2015-28. Generally, the Read More
How do I Correct a 401(k) Plan Loan Error?
Many 401(k) plans allow loans to participants. However, failure to properly administer plan loans is a common 401(k) compliance issue. Before distributing loans to participants, plan sponsors should ensure that their plan document: (i) allows plan loans and (ii) appropriately reflects the requirements prescribed under Internal Revenue Code (the “Code”) Section 72(p). What are the loan requirements under the Read More
Business Associates and Business Associate Contracts
An HR Director recently asked me (i) how to determine if an entity is a business associate and (ii) what terms should be included in a business associate agreement? Who is a Business Associate? Generally, a business associate is a person who, on behalf of a health plan, and in a capacity other than as part of the covered entity’s workforce: performs or assists in performing a function or activity involving the Read More