Employers sponsoring 401(k) or other types of defined contribution plans “pre-approved” by the Internal Revenue Service (IRS) should be aware that the restatement deadline is quickly approaching. The IRS requires pre-approved plans to be amended and restated every six years to incorporate recent law changes. The deadline for the current restatement cycle, “Cycle 3,” is
Co-fiduciary Can’t Be Sued for Indemnification in 8th or 9th Circuits First Reliance Standard Life Ins. Co. v. Giorgio Armani Corp. U.S. No. 21-861, Cert. Denied 2/22/22
Section 405 of the Employee Retirement Security Act of 1974 (ERISA) provides for joint liability for co-fiduciaries of a pension, health or welfare benefit plan. In this case, there was an enrollment error in signing up an employee for life insurance coverage with his employer – Georgio Armani Corp. The surviving spouse, Soohyun Cho sued
Annual Limits on Qualified Plans for 2022
Updated November 18, 2021
On November 4, 2021, the Internal Revenue Service (IRS) released Notice 2021-61, which sets forth the 2022 cost-of-living adjustments affecting dollar limits on benefits and contributions for qualified retirement plans. The health savings account (HSA) and high deductible health plan (HDHP) annual deductible and out-of-pocket expense adjustments were announced earlier
AMERICAN RESCUE PLAN ACT CONTAINS MANY EMPLOYEE BENEFITS RELATED PROVISIONS
On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 (the “ARPA”) into law. Many of the provisions in this sweeping legislation bring changes to the employee benefits world of which employers should take note and which are summarized below.
Subsidized COBRA
The ARPA contains several new rules which impact COBRA
SECURE Act Includes Retirement Plan Changes, Some Effective Immediately
On December 19, 2019, the President signed the SECURE Act. SECURE includes, among other things, provisions that are intended to make retirement plans more accessible, especially to smaller employers, address changing workforce demographics, address nondiscrimination issues facing defined benefit plans, encourage guaranteed income options under defined contribution plans, and increase penalties for noncompliance with certain
IRS Memorandum Limits Exceptions for Retaining Signed Retirement Plan Documents – (excuse that “my dog ate my plan documents” will not always work)
Generally, for a tax qualified retirement plan to be adopted, the plan document must be signed and dated by the sponsoring employer and retained. However, in Val Lanes Recreation Center Corp. v. Commissioner of Internal Revenue, T.C. Memo 2018-92, the Tax Court found that the employer’s failure to produce a signed plan document did
Class Action Filed Against Fidelity for Alleged “Secret Kickback Payments”
On February 21, 2019 attorneys for Andrew Wong, a participant in the T-Mobile USA Inc. 401(k) Retirement Savings Plan & Trust, filed a class action complaint in the U.S. District Court of Massachusetts against FMR LLC, Fidelity Management Research Company, Fidelity Management Trust Company and several other affiliates. The basis for the lawsuit relates to
Are Your Business Associate Agreements In Place?
HHS Announces Significant Settlement Agreements for Noncompliance
On December 4 and December 11, 2018, the U.S. Department of Health and Human Services’ (HHS) Office for Civil Rights (OCR) issued press releases announcing two settlements with health care providers for violation of the Health Insurance Portability and Accountability Act’s (HIPAA) privacy and security rules. Specifically, the
IRS Annual Limits on Qualified Plans for 2019
IRS Annual Limits on Qualified Plans for 2019 By Jeffrey P. Cairns
The Internal Revenue Service has released the 2019 cost-of-living adjustments affecting dollar limits on benefits and contributions for qualified retirement plans. The Notice providing the cost-of-living adjustments is available here 2018-83. The Service announced the Health Savings Account Limits in May, 2018.
DOL Issues Final Association Health Plan Rule
On June 19, 2018, the Department of Labor (DOL) released a final rule that offers new options for associations to sponsor health plans for their members. These new options allow more small businesses to come together to create large employer plans free from many of the Affordable Care Act (ACA) mandates applicable to individual and