The IRS recently announced cost-of-living adjustments for 2019 in Notice 2018-83 and related guidance. The key dollar limits for qualified retirement plans and health and welfare plans are noted below. Qualified Retirement Plan Dollar Limits 2018 2019 Limit on Section 401(k) deferrals (Section 402(g)) $18,500 $19,000 Dollar limitation for catch-up contributions (Section 414(v)(2)(B)(i)) $6,000 […]
On August 17, 2018, the Internal Revenue Service (the “Service”) published a Private Letter Ruling (the “PLR”) describing a unique student loan repayment program in the context of a qualified retirement plan. Proposed Student Loan Repayment Program As described in the PLR, an Employer sponsors a Section 401(k) defined contribution plan that permits elective deferrals. […]
Late last year, the Internal Revenue Service (the “Service”) began enforcing penalties with respect to failures to comply with the employer shared responsibility provisions of Section 4980H of the Internal Revenue Code. In the coming months, the Service is expected to begin assessing penalties with respect to such failures occurring in calendar year 2016. These […]
We previously reported on certain changes made to the hardship distribution rules for qualified retirement plans by the Tax Cuts and Jobs Act. Since then, Congress has made additional and significant changes to those same hardship distribution rules by the passage of the Bipartisan Budget Act (the “BBA”). The BBA loosens various restrictions on a […]
In Revenue Procedure 2018-18, the Internal Revenue Service announced a reduction in the HSA contribution limit for family coverage in 2018 to $6,850 from $6,900. The self-only HSA contribution limit for 2018 remains unchanged at $3,450. This change is a technical result of the Tax Cuts and Jobs Act, which adjusted the method for calculating […]
As we recently reported in our “2017 End of the Year Plan Sponsor To Do List,” applicable large employers must continue to submit to the IRS and to employees information regarding offers of health coverage made to full-time employees in 2017. The IRS recently published Notice 2018-06 (the “Notice”), which contains some relief with respect […]
This post has been updated as of June 7, 2018, to reflect the revised maximum annual HSA contribution limit for family coverage set out in Revenue Procedures 2018-18 and 2018-27. The IRS recently announced cost-of-living adjustments for 2018 in Notice 2017-64 and related guidance. The key dollar limits for qualified retirement plans and health and welfare plans […]
In a series of tweets published on July 26, 2017, President Trump announced a ban on transgender service in the armed forces. In the wake of this reversal of government policy, employers may question the current state of transgender benefits and whether additional changes are forthcoming. On May 18, 2016, the Department of Health and […]
On June 8, the House of Representatives passed the Financial CHOICE Act of 2017 in a bid to reform the financial regulatory system created by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The bill, which passed the chamber on a vote of 233 to 186, has received support from the Trump Administration but […]
As efforts to reform the Affordable Care Act (the “ACA”) stall in Congress, a recent government report suggests that the Internal Revenue Service is preparing to identify and collect employer shared responsibility penalties. The Treasury Inspector General for Tax Administration issued the report, Affordable Care Act: Assessment of Efforts to Implement the Employer Shared Responsibility […]
