Search the News Archive

Groom Law Group Recommendation for IRS Priority Guidance Plan: Expand 'Dependent' Definition for VEBA Purposes

"The Treasury regulations governing VEBAs were published nearly 45 years ago. Since that time, the provisions regarding who qualifies as a 'dependent' for VEBA purposes have become outdated.... This letter briefly summarizes [the] rationale for requesting this change and recommends an approach to modify the VEBA regulations to include expanded family relationships, similar to other areas of the law."

Groom Law Group Urges IRS to Expand Determination Letter Program

"[Groom Law Group submitted letters] recommending consideration of the following plans as applicants for updated determination letters: [1] Plans with a cash balance or similar benefit formula whose last determination letter was before the effective date of the final IRS hybrid plan regulations. [2] Plans that address income replacement and inflationary pressures through adoption of a variable annuity feature. [3] Traditional pension plans that convert to a cash balance-type formula. [4] Plans that undergo major changes that otherwise make certain compliance testing unnecessary -- such as safe harbor 401(k) plans. [5] Plan changes accompanying significant workforce adjustments, such as downsizings or corporate separations. [6] Corrective plan amendments submitted as part of an EPCRS submission. [7] Governmental plans where there has been a significant change in the governing state or local law."

Groom Law Group Letter to IRS: 2024-25 Priority Guidance Plan Recommendation (PDF)

"We again write to recommend that Treasury and IRS publish official guidance confirming that the 100% excise tax on reversions under Section 4976 of the Internal Revenue Code ... does not apply when an employer 'repurposes' surplus retiree benefit assets in a welfare benefit fund to provide other health and welfare benefits, including to active employees.... [T]here are compelling policy reasons to issue guidance to allow the repurposing of such assets -- and no apparent policy or legal reasons to continue to place billions of dollars of tax-deferred welfare benefit fund assets in 'tax limbo.' "

Groom Law Group Comments on FBAR Filing Requirement for Pension Plans (PDF)

20 pages. Excerpt: We write to respond to the Treasury's request for comments regarding FBAR and the accompanying instructions. As noted in our July 29, 2009 letter and discussed in more detail below, the policy goals of FBAR ? to detect and prevent taxpayers from hiding assets offshore toavoid income taxes or launder money ? are not advanced by requiring U.S persons to file an FBAR with respect to 'foreign financial accounts' held by or for the benefit of Plans. Nevertheless, Treasury may expect at least a 40 percent increase in annual FBAR filings (nearly 75,000 additional filings) from Plans qualified under Code section 401(a), which would test IRS's already limited resources to indentify violators. Thus, we respectfully make the following recommendations[.]

Groom Law Group Comments on FBAR Filing Requirement for Plans (PDF)

3 pages. Excerpt: Groom Law Group submitted [this] letter to the Internal Revenue Service (IRS) to request a temporary suspension of the Report of Foreign Bank and Financial Accounts form (FBAR) filing requirement for pension plans beyond the current September 23, 2009 deadline.

Pension Provisions of the US Model Tax Treaty: Comments by Groom Law Group

Excerpt: The comments include the possible elimination of the clause applying the 'lesser of' the benefit limits of the two countries for certain corresponding pension plans as unnecessary and difficult to administer, a broader provision for nondiscrimination in the taxation of pension investments in a manner similar to the European Commission, extending the third-state pension provision found in the US-Belgium tax treaty to other tax treaties, and granting greater portability of pensions between corresponding plans of different treaty countries.

Groom Law Group Comment Letter to DOL on Proposed Revisions to Form 5500 Annual Return/Report for Multiple Employer Plans (PDF)

5 pages. "We recommend that the [DOL] limit the requirement to include an attachment listing all employers to multiple employer defined benefit plans, which were the focal point of the legislation. At a minimum, we believe the Department should not require other types of plans, i.e., defined contribution and group health and welfare plans, to include any employer (or employee) contribution information, and should make such relief applicable to 2014 plan year filings."

In Remembrance of Theodore R. Groom

"On November 26, 2021, Groom Law Group lost its founder, friend and leader, Theodore R. Groom. In 1975, Ted co-founded Groom and Nordberg, which evolved to become Groom Law Group, Chartered, the nation's foremost benefits, retirement and healthcare law firm.... In the 1970s, Ted was instrumental in the development of [ERISA], particularly its landmark fiduciary responsibility provisions.... We remember Ted as a mentor, teacher, trusted colleague and friend, as a man who loved the law, and, most of all, as a man who loved and supported his family, friends and colleagues."

Groom Presentation: Overview of Health Care Reform

32 page PDF. Excerpt: Groom Law Group hosted a dial-in for our clients and friends of the firm on Wednesday, January 13th to discuss where health care reform stands at the beginning of 2010. The presentation compared and summarized the key provisions of Senate and House legislation in the areas of insurance market reform, the individual and employer mandates, the Exchange provisions, and tax 'revenue raisers.' A recording of the call is available until February 13th.

Groom Comments on 2009 Suspension of Required Minimum Distribution Rules (PDF)

5 pages. Excerpt: Groom Law Group submitted the attached letter to the IRS to request additional clarifying guidance with respect to the 2009 suspension of the required minimum distribution rules for defined contribution plans described in Code section 401(a), 403(b) plans, governmental 457(b) plans, and IRAs provided under the Worker, Retiree, and Employer Recovery Act of 2008.