The IRS recently announced a Section 409A compliance initiative project. The IRS audit project will focus on approximately 50 employers, all of whom were previously identified for employment tax audits. The IRS indicated that it will focus its examination on: (i) initial deferral elections; (ii) subsequent deferral elections; (iii) distributions; and (iv) application of the […]
GG
Previously, the IRS issued guidance on what employers need to do in order to comply with the United States v. Windsor decision. The guidance insturcts employers on how and when to amend a qualified retirement plan if its current terms regarding marriage and the definition of spouse are inconsistent with Windsor. In short, the employer must adopt an […]
KH
Plan administrators that fail to timely file their Form 5500s can be subject to penalties under both ERISA and the Code. The Department of Labor’s Delinquent Filer Voluntary Compliance Program (“DFVCP”) provides plan administrators with the opportunity to pay reduced Department of Labor penalties for late Form 5500 filings. The DFVCP among other things, requires […]
GG
I gave a presentation last week at the Western Pension & Benefits Conference Phoenix Chapter Spring Conference entitled “Ding Dong DOMA’s Dead – The Supreme Court’s Same-Sex Marriage Ruling and Its Impact on Employee Benefit Plans.” Upon finishing my presentation, I realized my last few slides are a good checklist. On April 4th, the IRS […]
NC
Many start-up companies reward their employees with restricted stock subject to time-based (or performance-based) vesting restrictions. What we sometimes find is that the start-up company and the employee do not fully appreciate the tax implications of a restricted stock award and the potential benefits of a timely filed Section 83(b) election. Section 83 of the […]
GG
Earlier this year, I blogged about how the IRS modified the health flexible spending account (“health FSA”) “use-it-or-lose-it” rule to allow carryovers of up to $500 to subsequent plan years. This rule change caused some confusion. Employers were asking, “what happens to an employee’s eligibility to contribute to a health savings account (“HSA”) if they […]
KH
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 […]
AM
The IRS recently released final regulations (“Final Regulations”) clarifying the conditions that constitute a substantial risk of forfeiture for purposes of Section 83 of the Internal Revenue Code. As some of you know, Section 83 generally provides that property transferred in connection with the performance of services will be not be taxed until the date […]
GG
The proposed regulations included many helpful transition rules. Although I hoped that the transition rules would be extended, I really didn’t think they would be. The good news is — I thought wrong. A package of limited transition rules that applied to 2014 under the proposed regulations has been extended to 2015, including: Special 6 […]
NC
Last summer, the Supreme Court determined that the Defense of Marriage Act (“DOMA”) was unconstitutional. The Supreme Court’s ruling in United States v. Windsor had the effect of extending many employee benefits to same-sex spouses. Employee benefit plans were significantly impacted by the ruling, and, as a result, the IRS and the Department of Labor […]
KH
