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An Employer's Practical Guide to 401(k) Plan Catch-Up Contribution Changes for 2026

"These steps should be taken by December 31, 2025: [1] Ensure systems will identify 'High Earners' ... [2] Confirm payroll is set to withhold catch-up contributions for High Earners as after-tax contributions. [3] Determine whether the plan will administer catch-up contributions as deemed elections or require affirmative election. [4] Confirm payroll and plan recordkeeping systems communicate wage data correctly and can segregate contribution types. [5] Communicate with participants."

IRS Streamlines 83(b) Election Process with New Online Filing Option

"Pursuant to Code Section 83(b)(2), the election must be made not later than 30 days after the date of the Restricted Property transfer (i.e., the date of receipt by the service provider from the company). Late elections are not permitted.... While the online election mechanism will ease administrative difficulties for service providers, timely and proper filing remain critical components."

Recently Issued Regulations That Will Take Effect in 2025 and 2026

"Prior to the end of the Biden administration, a number of proposed and final regulations were issued that impact retirement and welfare benefit plans. The final regulations are effective in 2025, and the proposed regulations, if finalized, would be effective in 2026.... [1] New relief on ACA employer mandate penalties.... [2] IRS anticipates a delay in applicability date for future SECURE 2.0 required minimum distribution regulations.... [3] IRS proposes regulations on SECURE 2.0 Act catch-up provisions."

Multiemployer Withdrawal Liability Can Extend Beyond the Withdrawing Employer

"[U]nder certain circumstances, the employer's owners, their spouses, and affiliated companies may also be subject to withdrawal liability. Whether withdrawal liability may attach is a very fact-intensive analysis ... Employers should keep in mind that what appear to be unrelated businesses owned by the spouses of company owners can be deemed to be "trades or businesses" under common control and as a result be responsible for the payment of withdrawal liability." [Local No. 499, Board of Trustees of Shopmen's Pension Plan v. Art Iron, Inc., Nos. 22-3925, 22-3926 (6th Cir. Sep. 26, 2024)

Health Plan Compliance Concerns for Year-End 2024

"[1] HIPAA privacy extends special protections to reproductive health care: Employer action required by 12/23/24 ... [2] Gag clause attestation.... [3] NQTL compliance.... [4] Transparency requirements.... [5] Fiduciary obligations ... [6] Cybersecurity compliance.... [7] Prescription drug reporting."

Crushing Health Care Taxes and Penalties Delayed

Excerpt: The [IRS, DOL and HHS] have postponed until at least mid to late 2011, at the earliest, the effective date of the new Patient Protection and Affordable Care Act ... non-discrimination rules that may result in substantial taxes and penalties for noncompliance.

Summary of the Principal Provisions of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010

Addressed in the summary are various employment-based benefits such as the child care credit, Employer Provided Educational Assistance, and Adoption Credit and Exclusion from Income for Employer Provided Assistance.

Thirteen Things Employers Need to Know About Health Reform

Excerpt: This new regime is exceedingly complex, with various provisions becoming effective on different dates. Employers should develop a comprehensive strategy to ensure they meet the obligations imposed by this reform as they become due while continuing to ensure their group health plans meet their organization's goals without unnecessary and undue cost.

Delay in W-2 Reporting Requirements

Excerpt: The IRS also issued a draft W-2 Form for 2011, which would allow employers to voluntarily provide information about the cost of coverage. The IRS stated it plans to publish guidance on this requirement later this year.