Seemingly unfazed by the recent setbacks with the Association Health Plan regulations, the Departments of Treasury, Labor and Health and Human Services have released new health reimbursement (HRA) regulations that could reshape the group health plan landscape by providing employers
Employee Benefits Law Report
Reporting on recent legal developments and trends affecting employee benefits
The Employee Benefits Law Report, published by Porter Wright Morris & Arthur LLP, focuses on legal and regulatory issues related to employee benefit plans. It covers topics such as compliance with Department of Labor (DOL) guidance, ERISA requirements, summary plan descriptions, plan documents, and fiduciary responsibilities. The blog addresses practical concerns for plan sponsors and fiduciaries, including annual funding notices, ESOP transaction regulations, and best practices for plan administration. It also provides explanations of key employee benefits concepts and helps employers navigate complex regulatory frameworks affecting retirement and welfare benefit plans.
Latest from Employee Benefits Law Report - Page 5
IRS issues guidance on excise tax on executive compensation of tax-exempt entities
The IRS recently issued Notice 2019-09 (Notice), which provides guidance with respect to the 21 percent excise tax on remuneration in excess of $1 million and excess parachute payments by “applicable tax exempt organizations” (ATEOs) applies under Code Section 4960.…
IRS publishes transition relief regarding part-time employees and 403(b) plans
The IRS recently issued Notice 2018-95 (the Notice), which clarifies the circumstances under which part-time employees must be given the opportunity to make deferral elections under their employers’ 403(b) plans. In particular, the Notice provides transition relief from the once-in-always-in…
IRS letter ruling generates interest in employer student loan benefit plans, but be aware of testing and other issues
The Internal Revenue Service (IRS) recently issued a private letter ruling, PLR 201833012 (PLR) that has generated interest among employers about student loan benefit programs. An IRS official at a recent conference, however, cautioned practitioners to read the PLR because…
Recent IRS guidance affects corporate tax deductibility of public company executive compensation arrangements and related proxy statement disclosures
By Greg Daugherty & Dave Tumen
We previously blogged about how the Tax Cuts and Jobs Act (the Act) amended Internal Revenue Code Section 162(m). In general, the amended Code Section 162(m) restricts the ability of publicly traded companies to recognize a tax deduction for amounts…
Fifth Circuit issues mandate that vacates the ERISA fiduciary rule: What plan sponsors should do next
After years of revising regulations and even more years of legal battles, the Department of Labor’s (DOL) 2016 ERISA fiduciary regulations (the regulations) essentially end up right where they started. That is because the U.S. Court of Appeals for the…
Final association health plan regulations provide opportunity for small employers…maybe
In February, we reported that the Department of Labor (DOL) issued a proposed rule that could make it easier for small businesses to join together to purchase health insurance. That proposed rule sparked considerable debate on the general merits of…
Tie goes to the plan administrator: Sixth Circuit clarifies importance of Firestone language for ERISA plan interpretation
In baseball, there is a common saying that a “tie goes to the runner.” Under this maxim, if a base runner and the baseball arrive at the base at the same time, the runner is safe. Stated another way, the…
IRS provides guidance to 403(b) plan sponsors who can’t locate participants required to receive distributions (but be mindful of DOL rules too)
The IRS’s Tax Exempt and Government Entities Division recently issued a memorandum (the memo) to its auditors that directed them not to challenge a 403(b) plan as failing to satisfy the required minimum distribution (RMD) standards under circumstances set out…
Association health plans: Proposed DOL rules create potential opportunity for associations and small employers
On Jan. 5, 2018, the Department of Labor (DOL) issued a proposed rule that would make it easier for small businesses to join together to purchase health insurance.
This is not a completely new concept. Unrelated small employers can join…