The Internal Revenue Code imposes dollar limitations on various compensation, benefit and contribution levels under qualified retirement plans. Today, the Internal Revenue Service announced the 2020 cost-of-living adjustments affecting dollar limitations for qualified retirement plans. Check out our chart for easy reference!
https://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.png00adminhttps://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.pngadmin2019-11-06 09:23:392019-11-06 09:23:41Take it to the limit one more time…IRS announces cost-of-living adjustments for 2020!
The Health Insurance Portability and Accountability Act
(“HIPAA”) was created for one specific reason – evolution of technology. Today,
health care providers are using online clinical applications and electronic
health records; also, health plans are offering online access to claims and
care management. This evolution of technology, while incredible and
appropriate, raises several security risks that could, if not appropriately
addressed, lead to HIPAA penalties.
Health care providers and group health plans (“covered
entities”) deal with highly sensitive and protected health information (“PHI”).
The HIPAA privacy, security, and breach rules were adopted to make sure covered
entities protect and safeguard PHI. Although employers/plan sponsors are not
directly subject to the HIPAA rules; if the covered entity is a self-funded
group health plan, complying with the myriad of HIPAA rules will likely fall on
the plan sponsor.
https://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.png00adminhttps://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.pngadmin2019-10-22 09:38:352019-10-22 09:40:09It’s HIP(AA) to be square… making sure you are HIPAA compliant
As you may recall, Private Letter Ruling 201833012 (the
“PLR”), concerning the IRS’ approval of Abbott Laboratories’ plan to
implement 401(k) matching contributions on student loan repayments, was
released to much fanfare in the summer of 2018.
We’ve learned that at last week’s annual NASPP conference in New
Orleans, Stephen Tackney, Deputy Associate Chief Counsel of the IRS Office of
Chief Counsel (and author of the Section 409A deferred compensation
regulations) announced that the IRS is working on converting the PLR into a
revenue ruling that can be relied upon by all employers.
https://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.png00adminhttps://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.pngadmin2019-09-26 11:22:492019-09-26 11:22:51Start spreading the news…student loan 401(k) match revenue ruling in the works
If you are one of those plan
sponsors who was waiting for the final hardship regulations to be issued before
making any changes to hardship distributions in your plans – your time has
come. The Treasury Department and IRS issued the final regulations on September
19, 2019 for publication today, September 23, 2019.
These regulations finalize
the proposed regulations issued on November 14, 2018, and they are essentially
the same with some clarifications. Plans that made changes in compliance with
the proposed regulations will be deemed to have complied with the final
regulations. Overall the rules – which generally apply to 401(k) plans, 403(b)
plans, and 457(b) plans – ease some of the restrictions on taking hardship
distributions.
https://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.png00adminhttps://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.pngadmin2019-09-23 14:45:522019-09-23 15:12:23It’s been a hard day’s night: final hardship distribution rules issued
Final rules released by the Departments of Labor, Health and
Human Services and Treasury on June 13, 2019 have the potential to transform
how employers pay for health care coverage for employees. The rules
permit the use of a new type of health plan called an individual coverage
health reimbursement arrangement (“ICHRA”). Under an ICHRA, the
employer provides an amount that can be used by the workers to pay for all or
some of health coverage obtained in the individual market. These plans
will presumably be utilized by employers that want to offer a health benefit to
employees without maintaining a full (major medical) group health plan.
However, an important notice deadline is approaching. Employers
that want to adopt an ICHRA for 2020 (effective January 1, 2020) must provide a
notice to employees by no later than October 3, 2019. The new ICHRA
guidance is complex and includes rules related to enrollment, classes of
employees, opting out, substantiation of expenses and the annual notice
requirement described above. Given the short time frame to analyze
whether to proceed under the new rules, work out the details and issue the
required notice, many employers may take a wait and see approach and defer this
decision to the 2021 plan year or beyond. Early adopters, however, need
to act soon if this is on their agenda for 2020.
If you have questions about the new ICHRA health plans,
reach out to a member of the Benefits Law Group and we will be glad to
assist.
https://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.png00adminhttps://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.pngadmin2019-09-19 11:00:252019-09-19 11:01:14Wake me up when September ends
Employee Stock Purchase Plans (ESPPs) are a program offered by many companies (particularly those with publicly traded stock) as a way for all of their employees to buy company stock. In their most robust format, employees can buy stock at a discount. You’d think employees would jump at the chance to capitalize on this immediate value opportunity. Not so! Employee participation rates are typically fairly low (often below 50%). Employers who offer ESPPs strive for ways to engage employees to appreciate and participate in this valuable benefit. Those employers may be interested to hear that a startup company is making headlines for its product aimed at boosting ESPP participation.
https://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.png00adminhttps://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.pngadmin2019-09-05 09:22:122019-09-05 09:22:14She works hard for the money, so you’d better … help her afford to buy company stock
You may be hearing from the IRS soon on penalties related to the Affordable Care Act (“ACA”).
We
have seen increased ACA-related enforcement activity from the IRS,
particularly with respect to taxes owed under the employer mandate (which
requires large employers to provide group health coverage meeting certain
requirements to full-time employees). In our experience, the employer mandate
assessments often contain errors in calculating the penalty and/or originate
from inadvertent mistakes made by the taxpayer on the Form 1094-C or Form
1095-C and can often be eliminated or reduced.
The
IRS is also assessing penalties on large employers that fail to file
ACA-related tax forms. We recently
helped a large employer obtain full abatement of a proposed penalty exceeding
$200,000 for failure to file and transmit Forms 1094-C and 1095-C. In this
case, we were able to show that the failure was due to reasonable cause and
persuade the IRS to abate the entire penalty. If you receive proposed
ACA-related taxes or penalties, please reach out to a member of the Holland
& Hart Benefits Law Group.
https://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.png00adminhttps://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.pngadmin2019-08-16 09:16:162019-08-16 10:05:44Somebody get me a (juris) doctor . . . increased IRS activity on healthcare reform
Take it to the limit one more time…IRS announces cost-of-living adjustments for 2020!
/in 401(k) Plans, Defined Benefit Plans, ESOPs, IRS, Retirement Plansby Becky Achten & Lyn Domenick
The Internal Revenue Code imposes dollar limitations on various compensation, benefit and contribution levels under qualified retirement plans. Today, the Internal Revenue Service announced the 2020 cost-of-living adjustments affecting dollar limitations for qualified retirement plans. Check out our chart for easy reference!
It’s HIP(AA) to be square… making sure you are HIPAA compliant
/in Health & Welfare Plansby Hector A Beason
The Health Insurance Portability and Accountability Act (“HIPAA”) was created for one specific reason – evolution of technology. Today, health care providers are using online clinical applications and electronic health records; also, health plans are offering online access to claims and care management. This evolution of technology, while incredible and appropriate, raises several security risks that could, if not appropriately addressed, lead to HIPAA penalties.
Health care providers and group health plans (“covered entities”) deal with highly sensitive and protected health information (“PHI”). The HIPAA privacy, security, and breach rules were adopted to make sure covered entities protect and safeguard PHI. Although employers/plan sponsors are not directly subject to the HIPAA rules; if the covered entity is a self-funded group health plan, complying with the myriad of HIPAA rules will likely fall on the plan sponsor.
Read moreStart spreading the news…student loan 401(k) match revenue ruling in the works
/in 401(k) Plans, IRS, Retirement Plansby Ben Gibbons
As you may recall, Private Letter Ruling 201833012 (the “PLR”), concerning the IRS’ approval of Abbott Laboratories’ plan to implement 401(k) matching contributions on student loan repayments, was released to much fanfare in the summer of 2018. We’ve learned that at last week’s annual NASPP conference in New Orleans, Stephen Tackney, Deputy Associate Chief Counsel of the IRS Office of Chief Counsel (and author of the Section 409A deferred compensation regulations) announced that the IRS is working on converting the PLR into a revenue ruling that can be relied upon by all employers.
Read moreIt’s been a hard day’s night: final hardship distribution rules issued
/in 401(k) Plans, 403(b) plans, 457(b) plans, ERISA, IRS, Retirement Plansby Brenda Berg
If you are one of those plan sponsors who was waiting for the final hardship regulations to be issued before making any changes to hardship distributions in your plans – your time has come. The Treasury Department and IRS issued the final regulations on September 19, 2019 for publication today, September 23, 2019.
These regulations finalize the proposed regulations issued on November 14, 2018, and they are essentially the same with some clarifications. Plans that made changes in compliance with the proposed regulations will be deemed to have complied with the final regulations. Overall the rules – which generally apply to 401(k) plans, 403(b) plans, and 457(b) plans – ease some of the restrictions on taking hardship distributions.
Read moreWake me up when September ends
/in Benefits Plan Creation, Cafeteria Plans, ERISA, Fringe Benefits, Health & Welfare Plans, IRS, Legislationby Lyn Domenick
Final rules released by the Departments of Labor, Health and Human Services and Treasury on June 13, 2019 have the potential to transform how employers pay for health care coverage for employees. The rules permit the use of a new type of health plan called an individual coverage health reimbursement arrangement (“ICHRA”). Under an ICHRA, the employer provides an amount that can be used by the workers to pay for all or some of health coverage obtained in the individual market. These plans will presumably be utilized by employers that want to offer a health benefit to employees without maintaining a full (major medical) group health plan. However, an important notice deadline is approaching. Employers that want to adopt an ICHRA for 2020 (effective January 1, 2020) must provide a notice to employees by no later than October 3, 2019. The new ICHRA guidance is complex and includes rules related to enrollment, classes of employees, opting out, substantiation of expenses and the annual notice requirement described above. Given the short time frame to analyze whether to proceed under the new rules, work out the details and issue the required notice, many employers may take a wait and see approach and defer this decision to the 2021 plan year or beyond. Early adopters, however, need to act soon if this is on their agenda for 2020.
If you have questions about the new ICHRA health plans, reach out to a member of the Benefits Law Group and we will be glad to assist.
She works hard for the money, so you’d better … help her afford to buy company stock
/in Employee Stock Purchase Plans (ESPPs), Equity Compensation, Executive Compensation, Fringe Benefits, IRSby Beth Nedrow and Kevin Selzer
Employee Stock Purchase Plans (ESPPs) are a program offered by many companies (particularly those with publicly traded stock) as a way for all of their employees to buy company stock. In their most robust format, employees can buy stock at a discount. You’d think employees would jump at the chance to capitalize on this immediate value opportunity. Not so! Employee participation rates are typically fairly low (often below 50%). Employers who offer ESPPs strive for ways to engage employees to appreciate and participate in this valuable benefit. Those employers may be interested to hear that a startup company is making headlines for its product aimed at boosting ESPP participation.
Read moreSomebody get me a (juris) doctor . . . increased IRS activity on healthcare reform
/in Health & Welfare Plans, IRSby Kevin Selzer
You may be hearing from the IRS soon on penalties related to the Affordable Care Act (“ACA”).
We have seen increased ACA-related enforcement activity from the IRS, particularly with respect to taxes owed under the employer mandate (which requires large employers to provide group health coverage meeting certain requirements to full-time employees). In our experience, the employer mandate assessments often contain errors in calculating the penalty and/or originate from inadvertent mistakes made by the taxpayer on the Form 1094-C or Form 1095-C and can often be eliminated or reduced.
The IRS is also assessing penalties on large employers that fail to file ACA-related tax forms. We recently helped a large employer obtain full abatement of a proposed penalty exceeding $200,000 for failure to file and transmit Forms 1094-C and 1095-C. In this case, we were able to show that the failure was due to reasonable cause and persuade the IRS to abate the entire penalty. If you receive proposed ACA-related taxes or penalties, please reach out to a member of the Holland & Hart Benefits Law Group.