PODCAST: Williams Mullen's Benefits Companion - New Hardship Distribution Regulations for 401(k) Plans
The reason I never hired an employee is because I was an employee once too. I had co-workers, many of who I couldn’t trust (I did work for a couple of law firms)....more
On behalf of the ESOPs, Benefits & Compensation team, we hope your Summer is off to a great start. In the time of family vacations and out-of-office replies, the pace of employee benefits changes—both large and small—remains...more
President Biden signed the Consolidated Appropriations Act, 2023, on December 29, 2022, which includes the package of retirement plan legislation known as “SECURE 2.0.” SECURE 2.0 contains numerous significant changes for...more
Besides ensuring the federal government remains fully funded, President Biden’s signature Thursday on the Continuing Appropriations Act, 2023 (CAA 23) contains several provisions that will directly impact health and...more
When markets are unpredictable, employers may be required to make business decisions that can have unanticipated effects on their retirement and health and welfare benefit plans. Employers should keep the following...more
It’s easier to steal when no one is looking. In Ohio, a former plan participant is facing criminal charges for a fraudulent hardship request....more
As 2021 winds down, retirement plan sponsors should confirm that their plan documents are amended by December 31, 2021, to comply with certain plan changes: • Hardship Distributions. 401(k) plans and 403(b) plans must be...more
Holiday season and the end of the year are both quickly approaching, and with the turning of the calendar from 2021 to 2022 come several employee benefit plan amendment deadlines and implementation requirements. Some of these...more
On December 27, 2020, President Trump signed the Consolidated Appropriations Act of 2021 (the “Stimulus Act”), which not only gives taxpayers another stimulus payment but changes to retirement plans, including qualified...more
Last year, in response to the COVID-19 pandemic, the United States Congress and the Puerto Rico Department of Treasury (Hacienda) granted favorable tax treatment to coronavirus-related distributions (CRDs) and participant...more
A special IRS-approved correction method available for elective deferral failures in 401(k) and 403(b) plans with automatic contribution features will sunset on December 31, 2020, meaning it will not be available to correct...more
Seyfarth Synopsis: As Seyfarth has blogged about on multiple occasions, the CARES Act provides participants in tax-qualified retirement plans the opportunity to request distributions on a tax-favored basis by self-certifying...more
A lot has happened since the final regulations revising the hardship distribution rules were issued on September 23, 2019 (the “Hardship Regulations”). The Secure Act was enacted in December 2019, followed by the Cares Act in...more
As COVID-19 continues its upheaval of nearly all aspects of life, retirement plan administration included (see some of our prior discussions here, here, here and here), the Internal Revenue Service recently issued guidance...more
On June 19 and 23, 2020, the IRS issued additional guidance (IRS Notices 2020-50 and 2020-51) clarifying and expanding relief for retirement plan participants under the Coronavirus Aid, Relief and Economic Security Act (CARES...more
After the CARES Act was enacted, plan administrators had questions regarding how to determine if a participant is eligible to receive a Coronavirus distribution, Coronavirus loan, or delay of loan payments because a...more
The CARES Act provides for special federal tax treatment for “coronavirus-related distributions” from most types of tax-qualified retirement plans and IRAs. The distribution must be made between January 1, 2020 and December...more
The Coronavirus Aid, Relief, and Economic Security Act (CARES) made short-term changes to the rules for withdrawals from 401(k), 401(a), 403(b) and 457(b) plans and IRAs for qualifying emergencies and adverse financial...more
As you may have heard, the new “CARES” Act signed on March 27, 2020 creates a new “Coronavirus Related Distribution” option for participants in retirement plans who meet one of the following qualifications...more
The Coronavirus Aid, Relief and Economic Security Act (CARES Act) has a significant impact on employee benefit and retirement plans. The following summary highlights the changes...more
The Coronavirus Aid, Relief and Economic Security (CARES) Act was enacted on Friday, March 27, 2020, there have been changes to retirement plans. In-Service Distributions - The Act waives the 10% excise tax that...more
With the economy in a free-fall and the U.S. government scrambling to create a financial safety net for citizens, giving access to tax-qualified retirement savings was a natural piece of Congress’ plan to loosen the grip on...more
The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act), enacted on March 27, 2020, contains a number of provisions which directly impact tax-qualified retirement plans of non-governmental employers, which we...more
Hardship Distributions During the COVID-19 Outbreak As the COVID-19 outbreak continues, retirement plan sponsors will likely receive questions from employees about ways in which they can access funds in their retirement...more
I was an attorney for a third party administrator (TPA) in 2007 and one of our plan administrator said that a specific 401(k) plan we were the TPA for had a 7 year graded vesting schedule for matching contributions. The only...more