The Benefit of Benefits

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Voluntary Closing Agreements— The Non-EPCRS Correction Program Webinar

By Scott E. Galbreath, J.D., LL.M (Tax) on August 16, 2019

Just a brief post to let you know that I will be presenting a webinar for the Western Pension and Benefits Council Governing Board titled Voluntary Closing Agreements–The Non-EPCRS Correction Program on August 21 at 10 am PST. I will discuss fixing plan issues that do not qualify for correction under the Employee Plans Correction Resolution System (EPCRS) through the Employee Plans Voluntary Closing Agreement Program, including the advantages and disadvantages of closing agreements. I will…

The Benefit of Benefits

CalSavers on Radar of Justice Department

By Scott E. Galbreath, J.D., LL.M (Tax) on August 6, 2019

CalSavers, California’s mandated payroll deduction program for certain California employees who do not have access to retirement plans at work became effective July 1, 2019. However, still pending is a lawsuit by the Howard Jarvis Taxpayers Association to invalidate the law as preempted by ERISA. See CalSavers Moves to Dismiss Amended Complaint Challenging Program under ERISA. A motion to dismiss the amended complaint is awaiting a hearing. However, interestingly, on August 2, 2019, the…

The Benefit of Benefits

A More In Depth Look At The Expansion Of Self-Correction Under EPCRS

By Scott E. Galbreath, J.D., LL.M (Tax) on July 15, 2019

This post takes a deeper dive into the expansion of the self-correction program under EPCRS by reproducing my article from this month’s Compensation Planning Journal. The article discusses the increase in user fees under the Voluntary Correction Program which caused the industry to push back on the cost and request expanded self-correction to ease the cost of correction. It also discusses issues with the concept of self-correction and some proposed resolutions. I hope you enjoy…

The Benefit of Benefits

In 21st Century We May Not Have Hoverboards But We Have Electronic Top Hats

By Scott E. Galbreath, J.D., LL.M (Tax) on July 1, 2019

In 1989’s film Back to the Future II, Marty McFly rides a hoverboard (flying skateboard) to escape Griff Tannen and his gang of teenage thugs in the year 2015. Well it’s 2019, and we still don’t have hoverboards to ride, however, thanks to the Department of Labor we now have mandatory electronic top hats. On June 17, 2019, the Department of Labor announced that effective August 16, 2019 final regulations require that all “top hat”…

The Benefit of Benefits

CalSavers Moves to Dismiss Amended Complaint Challenging Program under ERISA

By Scott E. Galbreath, J.D., LL.M (Tax) on June 3, 2019

On April 11, 2019, the Howard Jarvis Taxpayer’s Association (HJTA) filed its amended complaint challenging the propriety of California’s new CalSavers retirement program after a federal district court dismissed its first complaint on March 28, 2019 but granted leave to amend the complaint due to the Court’s awareness of the importance of the case. See HJTA Files Amended Complaint Challenging CalSavers Program, See also, CalSavers Saved from ERISA Preemption By District Court. On…

The Benefit of Benefits

How to Take Advantage of the IRS Expanded Self-Correction Program

By Scott E. Galbreath, J.D., LL.M (Tax) on May 20, 2019

By now you’ve probably read that the IRS has expanded the failures that can be self-corrected under the Employee Plans Compliance Resolution System (EPCRS) as set forth in Rev. Proc. 2019-19 issued April 19, 2019. This development comes on the heels of the IRS changing how user fees are determined under the Voluntary Correction Program (VCP) from a participant-based fee to an asset-based fee. See, Plan Mistakes are Now More Costly to Correct. The…

The Benefit of Benefits

HJTA Files Amended Complaint Challenging CalSavers Program

By Scott E. Galbreath, J.D., LL.M (Tax) on April 23, 2019

On April 11, 2019, the Howard Jarvis Taxpayer’s Association (HJTA) filed its amended complaint challenging the propriety of California’s new CalSavers retirement program after a federal district court dismissed its first complaint on March 29, 2019. See CalSavers Saved from ERISA Preemption By District Court. Like the first complaint, the amended complaint attacks the statutory program in two ways. First, it argues that the program is preempted by ERISA and therefore should be declared…

The Benefit of Benefits

CalSavers Saved From ERISA Preemption By District Court

By Scott E. Galbreath, J.D., LL.M (Tax) on March 29, 2019

On March 29, 2019, the United States District Court for the Eastern District of California dismissed the lawsuit filed by the Howard Jarvis Taxpayers Association (HJTA) maintaining that CalSavers, California’s mandated auto-enrollment payroll deduction IRA retirement savings program, is preempted by ERISA. The court found that HJTA had standing to bring the suit and that the case was ripe for decision and would not dismiss on those grounds. It also found that CalSavers could not…

The Benefit of Benefits

Did Mueller Report Fuel ACA Fight?

By Scott E. Galbreath, J.D., LL.M (Tax) on March 28, 2019

I don’t believe much in coincidence when it comes to politics. It is clear that the President and current administration believe that the Mueller Report exonerates the President from any wrongdoing with respect to the Russian interference in the 2016 election or the subsequent investigation. Others disagree with respect to the obstruction of justice issue and congressional investigations continue. It is interesting though that just a day after the Attorney General issued his summary of…

The Benefit of Benefits

Meter Expiring On Important Election Regarding Tax Consequences Of Reserved Employee Parking

By Scott E. Galbreath, J.D., LL.M (Tax) on March 19, 2019

As a result of the 2017 Tax Act, the costs of providing qualified parking to employees as a tax-free fringe benefit is not deductible by for-profit employers and is subject to a 21% tax for tax exempt organization employers. Interim guidance provided by the Internal Revenue Service in Notice 2018-99 in December sets forth a four step process in determining how much of the cost of providing parking is nondeductible or taxable, respectively. Where the…

The Benefit of Benefits

…Because Compensation Is More Than Wages

Blog Authors

Voluntary Closing Agreements— The Non-EPCRS Correction Program Webinar

CalSavers on Radar of Justice Department

A More In Depth Look At The Expansion Of Self-Correction Under EPCRS

In 21st Century We May Not Have Hoverboards But We Have Electronic Top Hats

CalSavers Moves to Dismiss Amended Complaint Challenging Program under ERISA

How to Take Advantage of the IRS Expanded Self-Correction Program

HJTA Files Amended Complaint Challenging CalSavers Program

CalSavers Saved From ERISA Preemption By District Court

Did Mueller Report Fuel ACA Fight?

Meter Expiring On Important Election Regarding Tax Consequences Of Reserved Employee Parking

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