It’s no secret. Lots of people made poor decisions about their eligibility for the employee retention credit (“ERC”), which was passed by Congress to help businesses weather the pandemic-induced economic downturn. Apart from...more
In a decision that will come as potentially bad news to many private equity and hedge funds, on November 28, 2023, the U. S. Tax Court opined in Soroban Capital Partners LP versus Comm’r that limited partners in a limited...more
The Internal Revenue Service (“IRS”) issued Notice 2023-62 last week, which addresses a change made by the SECURE 2.0 Act of 2022 (“Secure 2.0”) to the 401(k) plan rules applicable to so-called “catch-up contributions” that...more
It’s not often that business owners get good news from the government, but small and even some medium-sized businesses with 401(k) plans got a helping hand from the U.S. Department of Labor (“DOL”) earlier this year when the...more
As part of its mammoth 2022 year-end spending bill, Congress passed Secure 2.0, which makes dozens of modifications to the laws governing retirement savings. These revisions, almost all of which were driven by concerns that...more
The Internal Revenue Service (“IRS”) announced today (October 21, 2022) the following dollar limits applicable to tax-qualified plans for 2023: Additional information regarding benefit plan dollar limits can be obtained in...more
The Ban on Non-Compete Agreements Amendment Act of 2020 (the “Act”) passed by the D.C. Council over the summer will take effect on October 1, 2022, imposing new substantive and procedural restrictions on D.C. employers’ use...more
The Internal Revenue Service (“IRS”) has announced a pilot program that begins this month in which they will send letters to employers letting them know that their retirement plan has been selected for examination.
Under...more
Compensating employees with cryptocurrency raises many of the same tax issues as compensating employees with employer stock and, therefore, requires thoughtful planning on the part of both the employer and the employee, says...more
It is common for executives to be compensated by giving them the right to receive employer stock. This right can take different forms, including direct stock grants, stock options, and restricted stock units. Equity awards...more
The Internal Revenue Service (“IRS”) announced yesterday (November 4, 2021) the following dollar limits applicable to tax-qualified plans for 2022...more
A federal appeals court recently ruled that an employer was entitled to a former employee’s 401(k) plan funds as restitution for that employee’s embezzlement. However, writes Dan Morgan of Blank Rome, the court failed to...more
As we explained in our April 16, 2021, post, the American Rescue Plan Act of 2021 (“ARPA”) requires employers to subsidize the cost of Consolidated Omnibus Budget Reconciliation Act (“COBRA”) continuation coverage and state...more
Earlier this year, Washington, D.C.’s mayor signed legislation, the “Ban on Non-Compete Agreements Amendment Act of 2020” (the “Act”), which imposes sweeping limitations on during-employment and post-employment non-compete...more
The Consolidated Omnibus Budget Reconciliation Act (“COBRA”) requires group health plans to allow qualified beneficiaries who would otherwise lose coverage due to certain events to elect to continue coverage under the plans...more
A recent decision by the Delaware Chancery Court in the clawback litigation between McDonald’s Corporation and its former CEO highlights the meaning and impact of a common contractual provision: the “integration clause.” Such...more
Late in December 2020, the District of Columbia Council passed legislation titled, “Ban on Non-Compete Agreements Amendment Act of 2020” (the “Act”), barring the use of non-compete agreements and workplace policies that...more
The great majority of 401(k) plans allow participants to borrow against their plan benefits. These loans are secured by the borrowing participant’s plan account and are typically repaid by withholding amounts from the...more
The Internal Revenue Service (“IRS”) announced yesterday (October 26, 2020) the following dollar limits applicable to tax-qualified plans for 2021...more
In a Memorandum to the Secretary of the Treasury, President Trump directed that the Secretary use his authority to defer the withholding and payment of the employee’s share of certain Social Security taxes for the period...more
The Covid-19 pandemic and its shock to the country’s economy have been felt particularly hard by small employers, who are also likely to face a number of looming problems with their 401(k) plans. This article discusses three...more
The Internal Revenue Code mandates that individuals receive annual required minimum distributions (“RMDs”) from employer tax-qualified retirement plans and IRAs. Until recently, RMDs had to begin by the April 1st following...more
In a recent announcement (Notice 2020-46), the Internal Revenue Service (“IRS”) provided guidance to employers for how to exchange employee elections to forego vacation, sick, or personal leave for cash payments that the...more
Under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), eligible employers are permitted to claim a retention payroll tax credit if they pay qualified wages after March 12, 2020, and before January 1,...more
On May 4, 2020, as part of a broader set of extensions intended to provide relief during the pandemic, the Department of Labor (“DOL”) and the Internal Revenue Service (“IRS”) moved back deadlines applicable to the election...more