The IRS has issued guidance on new retirement plan features under the SECURE Act, specifically related to long-term, part-time employees.
Top Hat Plans: What Executives and Organizations Need to Know…and Why
This past January, the U.S. Government Accountability Office (GAO) published its initial findings after conducting a review of executive retirement plans, specifically, top hat plans. The study came in response to a request filed by U.S. Senators Ron Wyden (Oregon), Bernie Sanders (Vermont), and Patty Murray (Washington).
This article looks at 1.) the GAO’s report; 2.) the final rulings by the U.S. District Court in the class action lawsuit of Berry v Wells Fargo & Co; and, 3.) the implications of both on Top Hat plans in general.
Deadline for RMD Rollback Under CARES Act is August 31
Taxpayers who have already taken their required minimum distribution, RMD, for 2020, have the option for an RMD Rollback under the CARES Act if taken by August 31, 2020. The intention of this option is to provide tax relief for those who took their required RMD prior to the Coronavirus Aid, Relief, and Economic Security (CARES) Act becoming law on March 27, 2020 and wish to ‘undo’ their action.
CARES Act Guidance for Plan Sponsors and Participants Updated
On June 19, 2020, the Internal Revenue Service (IRS) updated and clarified issues of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) guidance for plan sponsors and plan participants. Issued as Notice 2020-50 (“Guidance for Coronavirus-Related Distributions and Loans from Retirement Plans Under the CARES Act,”) the publication explains the new provisions which allow enhanced access to plan loans and plan distributions.
Defining “Separation from Service” under Section 409A
The atypical circumstances of recent months have created new situations most organizations have not previously faced. Every employer needs a clear understanding of which workforce reduction circumstances could constitute a “separation of service” and thereby trigger payment of benefits for plan participants covered by a nonqualified deferred compensation agreement (NQDC).
Does Furlough Constitute a Separation from Service Under IRC 409A
The COVID-19 pandemic has brought operational challenges and financial strain to businesses in every sector. While some organizations have terminated employees, other businesses have been able to furlough some of, or all, their workforce instead. How the employer handles the furlough is important for many reasons, including how the guidelines of Internal Revenue Code Section 409A (IRC 409A) impact decisions made by both employer and employee.
Fulcrum Partners Shares AALU Estate Planning Report from Heckerling Institute
On February 20, 2020, AALU released highlights from the 54th Annual Heckerling Institute on Estate Planning. The full AALU report is available as a PDF here: 54th Annual Heckerling Institute on Estate Planning.
March Compliance Calendar for Retirement Plans and Other Benefit Plans
Here is a checklist of 2020 compliance deadlines, covering retirement plans along with other health and welfare benefit plans. Thank you IslerDare PC for providing this information. Here are key March Deadlines for 2020: Date Action By March 1: File DOL1 Form M-1 for MEWA2s By March 2: Provide 2019 ACA3 information reporting returns (Forms 1095-B and 1095-C) to individuals By March 15: …
Unpacking Proposed Regulations by IRS and the Treasury Department on Changes to Section 162(m)
Winston & Strawn Partner Michael Melbinger continues his analysis of the proposed regulations that have been issues by the Internal Revenue Service (IRS) and the Treasury Department on changes to Tax Code Section 162(m). The following article first appeared on the Executive Compensation Blog on January 13, 2020, and is republished here with the author’s permission. #executivecomp #fulcrumpartners #IRS #162m
2020 Retirement Plan and Benefits Contribution Limits
On Wednesday, November 6, the Internal Revenue Service (IRS) announced its updated dollar limitations for tax-qualified, defined benefit and defined contribution plans. This guidance provides tax year 2020, cost‑of‑living adjustments (COLA), affecting dollar limitations for pension plans and other retirement-related items.
