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Most plan administrators are familiar with a qualified domestic relations order or “QDRO,” which is used to split retirement plan benefits between a plan participant and an alternate payee, such as an ex-spouse or minor child. Even an experienced plan administrator may not be aware that a QDRO can also apply to a welfare benefit …
Continue reading “Surprise! A QDRO Can Apply to a Welfare Benefit Plan”
Section 45S of the Internal Revenue Code (“Code”), added to the Code by the Tax Cuts and Jobs Act of 2017, establishes a general business credit for an employer who provides paid family and medical leave to qualifying employees. The credit would partially offset the cost of the paid leave, however, it is available only …
Continue reading “Determining Eligibility for the Employer Credit for Paid Family and Medical Leave”
Many recent college graduates find it difficult to make contributions to their employer’s 401(k) plan as they have significant student loan repayments which take precedence in their budget. By failing to make 401(k) deferrals, these employees may miss out on employer matching contributions as well as earnings on the deferrals and match. The IRS has …
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ERISA generally governs all pension and welfare benefit plans. In regulations, the Department of Labor (“DOL”) has exempted certain types of plans or practices from the definition of a welfare benefit plan under Title I of ERISA. One commonly used exemption is the “payroll practice” exemption. Exempt payroll practices include “payment of an employee’s normal …
Continue reading “Is a Self-Funded STD Plan an ERISA Plan or an Exempt Payroll Practice?”
An employee comes into your office and requests a copy of the plan document for the medical plan. What document do you give to the employee? One of the basic ERISA rules is that all employee benefit plans must have a written plan document. Under ERISA Section 402, a plan document must include these elements: …
Continue reading “Why Do I Need a Plan Document for my Welfare Benefit Plan?”