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
Recently enacted legislation related to COVID-19 allows an eligible employer to claim tax credits if the employer is required to pay certain sick or family leave wages to employees who are unable to work due to circumstances...more
On March 27, 2020, the Federal government enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) in the wake of the coronavirus (“COVID-19”) pandemic. The CARES Act, in part, provides relief to...more
3/31/2020
/ CARES Act ,
Coronavirus/COVID-19 ,
Financial Stimulus ,
Income Taxes ,
Paycheck Protection Program (PPP) ,
Payroll Taxes ,
Relief Measures ,
SBA ,
SBA Lending Programs ,
Small Business ,
Tax Relief
Now that it has become clear that the Covid-19 health crisis will result in significant economic disruption, including furloughs and job losses, employers should expect to confront challenges related to their 401(k) plans....more
In order to make tax-deductible contributions to a health savings account, an individual must be covered under a high deductible health plan and have no disqualifying health coverage....more
The final installment of this blog series discussing changes made by the Setting Every Community Up for Retirement Enhancement Act of 2020 (“the SECURE Act”) focuses on modifications to the required minimum distributions...more
This third installment of summaries of some of the key provisions of the Setting Every Community Up for Retirement Enhancement Act of 2020 (“the SECURE Act”) discusses an extension of the date for adopting a new employer...more
In this second of a four-part series providing an overview of some key provisions of the Setting Every Community Up for Retirement Enhancement (“SECURE”) Act of 2019, I summarize the Act’s liberalization of the 401(k) plan...more
One of the spending bills signed by President Trump to avert a government shutdown late last year had attached to it the Setting Every Community Up for Retirement Enhancement Act of 2019, or as it’s known by its acronym, the...more
In 2019, we witnessed the precipitous decline in value of WeWorks, as well as supernovas of other startups that investors considered to be shooting stars. Aside from increased scrutiny of founder financial projections, one...more
For many individuals, one of the most significant assets that gets transferred when they die is their benefits under an employer-sponsored retirement plan. A case recently decided by the Alabama Supreme Court, Moore v. Estate...more
The Internal Revenue Service (“IRS”) announced today (November 6, 2019) the following dollar limits applicable to tax-qualified plans for 2020:
The limit on the maximum amount of elective contributions that a person may make...more
The Bankruptcy Code contains a number of exemptions that an individual who has filed for bankruptcy can use to exclude property from the individual’s bankruptcy estate and shelter the property from the individual’s creditors....more
A problem faced by the administrators of 401(k) and other retirement plans is what to do about plan participants who fail to cash distribution checks. This problem arises most commonly in connection with a plan that is...more
Section 409A was added to the Tax Code in 2004 to, among other things, limit the ability of companies and their executives to optimize tax outcomes by controlling the timing of deferred compensation payments. Although this...more
If you’re an employer in Maryland, beginning October 1, 2019, you are prohibited from requiring a low wage worker (defined as someone earning less than $15/hour or less than $31,200/year) to sign a non-compete agreement with...more
For many years, the Internal Revenue Code has had in place a set of rules, in Code Section 413(c), which govern tax-qualified retirement plans that cover the employees of unaffiliated employers. These plans, which go by the...more
The Issue before the Supreme Court -
On June 10, 2019, the Supreme Court granted certiorari in a case from the 9th Circuit Court of Appeals involving the statute of limitations applicable to claims under the Employee...more
INTRODUCTION -
Now that §401(k) plans have replaced traditional pension plans as the overwhelming type of employer-sponsored type of retirement plan, there is a growing concern that many employees are not equipped to make...more
As part of 2017’s Tax Cuts and Jobs Act, Congress added new Section 4960 to the Internal Revenue Code. Section 4960 imposes an excise tax — currently set at 21 percent — on “applicable tax-exempt organizations” that pay...more
Increasingly, 401(k) plans have become the primary retirement savings vehicle for workers in U.S. private industry, and according to the Investment Company Institute, at the end of 2015, 87 percent of 401(k) plan participants...more
The Internal Revenue Service (“IRS”) announced on November 1, 2018, the following dollar limits applicable to tax-qualified plans for 2019:
- The limit on the maximum amount of elective contributions that a person may make...more
The Internal Revenue Service recently issued a ruling describing the tax treatment of individual retirement accounts that become unclaimed property. IRA owners should be aware of this ruling and ensure that they are taking...more
The IRS recently issued a ruling describing the tax treatment of IRAs that become unclaimed property. IRA owners should be aware of this ruling and ensure that they are taking appropriate measures to avoid having their IRAs...more
According to the Pew Research Center, as of June 2017, the total amount of U.S. student debt was $1.3 trillion; and 53 percent of all Americans under the age of 30 with a bachelor’s degree or higher had an outstanding student...more