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IRS and DOL Issue Initial Guidance on Pension-Linked Emergency Savings Accounts

"[Notice 2024-22] is limited to plans that offer matching contributions and that are considering implementing anti-abuse procedures beyond those explicitly provided for under Section 127. The DOL FAQs provide guidance on other issues related to PLESAs in ERISA plans, such as contribution timing and permissible investments. The formal application of some of them to non-ERISA plans remains unclear."

Defined Contribution Plan Alert: IRS Proposes New Rules for Required Minimum Distributions

"Because the Proposed Regulations will therefore not apply identically to all plans, employers should determine their application on a plan-by-plan basis.... Employers should ... review their current administration ... in light of the relevant rules.... Employers should ... track participant ages and employment status in light of the plan rules regarding RMD commencement and review beneficiary designations so that any gaps or uncertainties can be addressed proactively."

Reverse Claw-Backs Revisited: IRS Issues Guidance on Adjustments for Stock-Based Compensation Costs and Cost Sharing Arrangements

"[Chief Counsel memorandum AM2021-04] addresses two timing issues related to IRS transfer pricing adjustments of payments made among participants in a non-SBC cost sharing agreement. By its terms, the memorandum discusses such issues only in respect of agreements that include reverse claw-back provisions, but the positions and authority are much more widely applicable -- signaling that taxpayers that added reverse claw-back provisions to their agreements are in no better position than those that did not (and in fact may be worse off)."

Congress Takes the Stretch Out of IRAs (and Other Retirement Assets)

"Prior law defined two categories of beneficiaries, those who were 'designated beneficiaries' (eligible for 'stretch' treatment) and those who were not. The new law preserves those classifications, changes the treatment of designated beneficiaries, and adds one additional category, 'eligible designated beneficiaries.' Different rules apply to each category. Prior law also made a distinction in the treatment of inherited retirement accounts depending on whether the participant died before her required beginning date for taking distributions from retirement accounts or after. The new law does away with that distinction."

What You Need to Know About the New Tax on 'Excess' Nonprofit Compensation

"[1] Compensation that is 'reasonable' under other federal tax rules can still be taxed as 'excess' compensation.... [2] To know whether it might pay compensation that triggers the tax, a nonprofit ... must keep track of its 'related' entities and any compensation paid by those entities to shared employees.... [3] 'Remuneration' counts once there is no substantial risk of forfeiture.... [4] Each common-law employer, whether it is the nonprofit or a related entity, must pay its share of the tax based on its proportional share of remuneration paid to a covered employee."

Qualified Retirement Plans in 2017 and Beyond: Resources and Considerations for Employers

"The Required Amendments List is not exhaustive ... Operational compliance may be required prior to plan amendment ... Reliance on existing determination letters is limited."

Qualified Retirement Plans in 2017 and Beyond: Resources and Considerations for Employers

"The Required Amendments List is not exhaustive ... Operational compliance may be required prior to plan amendment ... Reliance on existing Determination Letters is limited ... Preserve the version of the plan document for which the most recent determination letter was issued, so that any subsequent amendments can be clearly identified; Weigh stylistic revisions to the plan document (whether via amendment or restatement) against their potential impact on reliance; and Consider the desired reliance on the existing plan document when drafting future amendments, e.g., in assessing which sections to amend and how best to do so."