In a new information letter, the U.S. Department of Labor (DOL) concludes offering professionally managed asset allocation funds, which include a private equity component as an investment option in an individual account plan (e.g., a 401(k) plan), is not
Benefit Notes
Understanding Employee Benefits
Benefit Notes, published by Stinson LLP, focuses on legal developments and compliance issues related to employee benefit plans and retirement plans. The blog covers topics such as annual limits and cost-of-living adjustments for qualified retirement plans, risk management in retirement plan litigation, legislative changes affecting health savings accounts and flexible spending arrangements, and regulatory updates impacting health plan compliance including HIPAA and mental health parity laws. It provides guidance on plan administration, fiduciary responsibilities, and the implications of recent court rulings and federal agency actions for employers and plan sponsors.
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New DOL Electronic Disclosure Safe Harbor Offers Relief for Retirement Plans
The Department of Labor has issued final regulations that will enable employers to electronically provide required information and documents to more plan participants. Although employers have been able to electronically provide some documents and information to some participants under existing…
IRS Answers Some FAQs on Coronavirus-Related Distributions and Loans
By Audrey Fenske & Sam Butler
On May 4, 2020, the IRS provided guidance on coronavirus-related distributions (“CRDs”) and coronavirus-related loans and loan payment delays (“CR Loan Provisions”) in the form of FAQs. In those FAQs, the IRS answered a few of the questions that many…
Multiemployer Pension Reform Likely on the Table in Phase 4 Coronavirus Bill
By Tom Dowling
Since the coronavirus (COVID-19) first emerged as a serious health emergency, Congress has moved quickly to pass three major pieces of legislation designed to address the public economic and health crises caused by the pandemic. According to reports, House Democrats…
CARES Act offers Opportunity for Tax-Free Student Loan Repayment Available until 2020 Year-End
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which addresses the public economic and health crisis related to the 2019 novel coronavirus (COVID-19). The CARES Act includes a temporary…
IRS Issues Coronavirus Relief for High-Deductible Health Plans
By Tom Dowling
On March 11, the IRS issued Notice 2020-15. The new guidance permits high-deductible health plans (HDHPs) to pay for 2019 Novel Coronavirus (COVID-19) testing and treatment without a deductible (or with a deductible below the minimum annual deductible otherwise…
SECURE Act Includes Retirement Plan Changes, Some Effective Immediately
On December 19, 2019, the President signed the SECURE Act. SECURE includes, among other things, provisions that are intended to make retirement plans more accessible, especially to smaller employers, address changing workforce demographics, address nondiscrimination issues facing defined benefit plans,…
IRS Answers FAQs That Arise When Participants are Slow to Cash Distribution Checks
Participants and beneficiaries are sometimes slow to cash qualified retirement plan distribution checks, especially when the checks are relatively small. This may result in the check being cashed in a year after the year the check was received. Sometimes it…
Casino Group’s Gamble on Partial Withdrawal Liability Hits Jackpot
By Mark Wilkins
Companies that contribute to multiemployer pension plans are often rightfully worried that corporate restructurings may inadvertently trigger either a complete or a partial withdrawal from the plan. A recent case out of the Third Circuit provides a helpful illustration of…
Time is Running out for 403(b) Plan Sponsors to Meet March 31, 2020 Adoption Deadline
Employers sponsoring 403(b) plans should be aware that we are nearing the deadline for adopting a pre-approved 403(b) plan that provides relief for any documentary noncompliance back to January 1, 2010 (or, if later, the effective date of the plan).…