Employee Benefits Blog

IRS Announces 2015 Cost-of-Living Adjustments for Retirement Plans

The IRS recently announced cost of living adjustments for 2015.  The key dollar amounts for retirement plans (compared to the 2014 dollar limits) are noted below. Maximum Qualified Retirement Plan   Dollar Limits 2015 2014 Limit   on Section 401(k) deferrals (Section 402(g)) $18,000 $17,500 Dollar   limitation for catch-up contributions (Section 414(v)(2)(B)(i)) $6,000 $5,500 […]

| 1 min read | Tagged: , , , ,
AM

IRS Issues Guidance on Longevity Annuities

The IRS recently issued guidance on the use of longevity annuities in defined contribution plans and IRAs.  These longevity annuities are known as “qualified longevity annuity contracts” or “QLACs.” A QLAC is a deferred annuity that begins at a specified age, but not later than age 85.  This type of annuity allows individuals to have […]

| 3 min read | Tagged: , , , , , , ,
AM

Supreme Court Decision Changes Standards for Employer Stock in Retirement Plans

The Supreme Court recently decided a case that eliminates the “presumption of prudence” for plan fiduciaries relating to their investment in employer stock in retirement plans.  In Fifth Third Bancorp v. Dudenhoeffer, the Supreme Court determined that fiduciaries of an employee stock ownership plan (“ESOP”) are not entitled to a presumption of prudence.  Rather, the […]

| 2 min read | Tagged: , , , , , ,
AM
TH
Of Counsel

Have you updated your Summary Plan Descriptions lately?

A summary plan description, or SPD, is the document that is given to participants and beneficiaries explaining the material terms of an ERISA plan.  Both pension plans and welfare plans are required to provide SPDs to participants.  An SPD generally must be provided when a participant first becomes covered by a plan.  It also must […]

| 2 min read | Tagged: , , , , ,
AM

IRS Issues Guidance on Same-Sex Marriage for Retirement Plans

Today, the IRS issued Notice 2014-19, which contains long awaited guidance on the application of the Supreme Court’s decision in United States v. Windsor.  The Windsor case found section 3 of the Defense of Marriage Act (DOMA) unconstitutional.  Sponsors of qualified retirement plans have been awaiting this guidance to determine how to apply the Windsor […]

| 2 min read | Tagged: , , ,
AM

Harkin Unveils USA Retirement Funds Act

Senator Tom Harkin (D-IA) recently unveiled his plan to improve the private retirement system.  Senator Harkin’s proposal was the third recent proposal targeting retirement plan savings.  President Obama introduced his myRA program during the State of the Union address and Senator Susan Collins (R-ME) and Senator Bill Nelson (D-FL) introduced the Retirement Security Act of […]

| 2 min read | Tagged: , ,
AM

Obama Administration Announces Plan for “Starter” Retirement Accounts

In his State of the Union address on January 28, President Obama announced that he will use his executive authority to direct the Treasury Department to create “myRA”, a starter retirement savings account program. According to White House Fact Sheet, a myRA will be available to individuals who do not have access to workplace retirement […]

| 1 min read | Tagged: , , ,
AM

IRS Issues Relief for Certain “Closed” Defined Benefit Plans

In Notice 2014-5, the IRS provided temporary relief from the Code’s nondiscrimination rules for certain defined benefit plans that are closed to new participants.  (This is sometimes referred to as a “soft freeze.”). The temporary relief allows employers who sponsor a closed defined benefit plan and a defined contribution plan to comply with Code’s nondiscrimination […]

| 1 min read | Tagged: , , , ,
AM