Especially upon plan termination, locating missing participants can be a major headache for plan sponsors, who have a fiduciary obligation to locate participants and distribute benefits under the terminating plan. In one development that may help in this regard, the Pension Benefit Guaranty Corporation (“PBGC”) issued final regulations that expand, revise and simplify its Missing …
Final ERISA Claims Procedures for Plans Providing Disability Benefits Effective April 1, 2018
March and April will be critical months for employers who sponsor ERISA-governed employee benefit plans that provide benefits subject to the disability claim procedures. Any claims filed after April 1, 2018 will be subject to a new final rule issued by the Department of Labor (“DOL”) in December of 2016. Plans subject to these rules …
Penalties are Coming: The IRS to Begin Enforcing the Affordable Care Act’s Employer Mandate
The IRS has taken actions indicating that the employer mandate penalties under the Affordable Care Act are about to be enforced. Employers should expect to begin receiving letters from the IRS indicating penalties are due for the 2015 year in the coming weeks. There are a few things that employers can do to be prepared …
The IRS Announces Updated Limitations Related to Employer Plans; 401(k) Contribution Limit Increases to $18,500 for 2018
The Internal Revenue Service (“IRS”) announced cost of living adjustments affecting dollar limitations for employer plans for tax year 2018. The IRS issued technical guidance detailing these items in Notice 2017-64, in addition to previous guidance in Rev. Proc. 2017-37 and Rev. Proc. 2017-58. Many of the limitations will change because the increase in the …
IRS Scrutiny of Plan Loans Increases, but IRS Provides Helpful Guidance
The Internal Revenue Service (“IRS”) has increased its level of scrutiny on the limitations imposed on participant loans from defined contribution retirement plans. Internal Revenue Code (“IRC”) Section 72(p) generally limits a participant’s plan loans to the lesser of: $50,000, or 50% of the participants vested account balance. Additionally, if the participant already took out …
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