Takeaways
A provision of the One Big Beautiful Bill Act created “Trump Accounts,” a new type of individual retirement account (IRA) for children. Starting in 2026, a Trump Account may be opened for any child who is a U.S. citizen,
Latest from Benefits Law Advisor - Page 2
IRS Guidance on Claiming the New Tax Deduction for Tips and Overtime Pay
Takeaways
For tax years 2025 -2028, the One Big Beautiful Bill Act (OBBBA) allows employees to take an above-the-line tax deduction on qualified overtime pay and qualified tips.
On November 21, 2025, the Internal Revenue Service (IRS) released IRS Notice
2026 Cost of Living Adjustments for Retirement Plans
The Internal Revenue Service recently announced its cost-of-living adjustments applicable to dollar limitations on benefits and contributions for retirement plans generally effective for Tax Year 2026 (see IRS Notice 2025-67). Most notably, the limitation on annual salary deferrals into
IRS 2025 Penalty Relief: A Break for Employers under OBBBA’s Tax Reporting for Tips and Overtime
Takeaways
The Internal Revenue Service (IRS) released guidance on November 5, 2025, granting employers relief from tax penalties for failing to provide employees information related to their (1) “qualified tips” and (2) “qualified overtime compensation” that is otherwise required under
IRS Issues Final Regulations on Mandatory Roth Catch-Up Contribution Ahead of January 1, 2026 Implementation Date
Takeaways
- Generally, plan sponsors should be prepared to implement the Roth catch-up rule for taxable years beginning after December 31, 2025 (i.e., January 1, 2026, for calendar year plans). This will require coordination with ERISA counsel, the company’s payroll provider,
Countdown to Compliance: What Employers Need to Know About New York’s Secure Choice Savings Program
New York has officially joined the growing list of states requiring certain private employers to offer retirement savings options. The New York Secure Choice Savings Program (Secure Choice or the Program) is moving closer to implementation, and employers, particularly those
A Fiduciary’s Next Steps After Trump’s August 2025 Executive Order: Opening the 401(k) Door to Alternative Investments
Introduction
On August 7, 2025, President Donald J. Trump issued an Executive Order designed to broaden access to alternative investments, such as private equity, commodities, real estate, and certain digital assets, for participants in 401(k) and other defined contribution retirement
New Tax-favored Benefit for Employees with Children
Takeaways:
- Trump Accounts are a new type of custodial savings account for children under 18, established under new Internal Revenue Code section 530A.
- For U.S. citizen children born between January 1, 2025, and December 31, 2028, there’s a $1,000 seed
Harnessing AI Under ERISA: A Compliance and Oversight Guide for Retirement and Health Plan Fiduciaries
It is increasingly evident that artificial intelligence (AI) is reshaping all facets of business, and its impact on employee benefit plans is no exception. From automating plan administration to personalizing participant communications, AI introduces both new opportunities and new responsibilities
Remote Work Challenges After New York Tax Appeals Tribunal Upholds Income Tax “Convenience Rule”
In an opinion issued on May 15, 2025, the State of New York Tax Appeals Tribunal, the highest administrative forum for state tax appeals, upheld the application of the state’s income tax “convenience rule” imposing New York tax on wages