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Supreme Court Hears Arguments on Availability of ACA Tax Subsidies Through Federal Exchanges (PDF)

"The King case involves more than the legal issue of the degree of deference that courts should afford to administrative agencies when interpreting the words used in a statute. The Court's decision in King will have real consequences for insurers, employers and millions of people.... Likewise, insurers who offer products on federally-established Exchanges could potentially be deprived of billions of dollars in premium dollars that they expected to receive for coverage sold on such Exchanges.... Additionally, if the Court rules that subsidies for coverage obtained through a federally-established Exchange are not available, the ACA's employer mandate penalty would not apply to large employers with full-time employees who obtain coverage through federal Exchanges." [King v. Burwell, No. 14-1158 (4th Cir. July 22, 2014; cert. pet. granted Nov. 7, 2014, argued Mar. 4, 2015)]

Tax Reporting Guidance for Uncashed Checks Issued by Qualified Plans (PDF)

"[According to Rev. Rul. 2019-19,] a check that was distributed and received by the payee so he or she could cash the check in the year issued is taxable income to the participant (or beneficiary) and subject to Form 1099-R reporting and withholding rules. This answer does not vary regardless of whether the participant or beneficiary keeps the uncashed check, sends it back to the plan, destroys it, or cashes it in a subsequent year."

IRS Determination Letter Program, Then and Now (PDF)

"The IRS determination letter program (Form 5300) is a cornerstone of the favorable tax treatment for individually designed qualified plans.... The program has undergone changes over the years, but it remains an invaluable benefit to plan sponsors that offer custom-designed tax-favored plans."

IRS Ends Lump Sum Windows for Individuals in Pay Status (PDF)

"Importantly, the Notice was quick to point out that it does not provide any guidance with respect to the federal tax consequences of a lump sum risk-transferring program under the following Code sections ... [1] Code Sec. 401(a)(4) ... nondiscrimination rules; [2] Code Sec. 411 ... non-forfeiture and anti-cutback protections; [3] Code Sec. 415 ... benefit limits; [4] Code Sec. 417 ... spousal protections; [5] Code Sec. 436 ... benefit restrictions based on the plan's funding levels.... [If] you are in the process of providing a lump sum option that extends to individuals in pay status, [the authors] recommend a file memo to show that you reviewed Notice 2015-49 and that you fit within one of the [transition rule] exceptions ... or that you otherwise meet one of the long-standing exceptions under Reg. Section 1.401(a)(9)-6, Q&A-13(b)."

IRS Issues Annual Lineup of Legal Changes for Qualified Plans: The 2014 Cumulative List (PDF)

"A summary of the key new items on the 2014 Cumulative List [is] set forth [in this article]. Notably, the 2014 Cumulative List deletes all items that were reviewed by the IRS during the prior Cycle E submission period.... [E]ach plan sponsor should: Review the plan document (and existing amendments) against the 2014 Cumulative List and ensure that the document has been updated for all required and optional plan changes (including legal and design changes). In the event of any missed amendment, an EPCRS filing should be considered."

IRS Guidance Gives In-Plan Roth Rollovers New Life (PDF)

5 pages. Excerpt: "This column briefly reviews the history of the Roth program, summarizes the new guidance in this area, reviews the comprehensive rules applicable to all in-plan Roth rollovers, and provides action steps for plan sponsors to take a fresh look at this optional plan design feature."

Proposed Required Minimum Distribution Regulations Explain SECURE Act Changes (and More) (PDF)

"With the regulations, however, come detailed rules on how to comply with what appears to be an even more complex regulatory scheme, now with two required beginning dates (RBDs) under a single plan, which depend on when the participant was born, and different death benefit rules depending on the type of plan and when payments to the participant commenced. With plan qualification and a 50% excise tax on participants on the line, the stakes are high to get compliance with these rules right."

Relief from the One Bad Apple Rule Is Coming, But Not Without a Price (PDF)

"The rather complex (and onerous) process of obtaining relief from the 'one bad apple' rule in the revised proposed regulations ... picks up the numerous notice requirements that were in the initial proposed regulations and adds more complications with a participant election and required plan amendments."

IRS Provides First Round of Guidance for 'Inadvertent Benefit Overpayments' (PDF)

"[Section 301 of SECURE 2.0] has both [DOL] and [IRS] components, with the DOL rules for [ERISA-covered] plans providing for an added layer of protection for participants. Specifically, the ERISA provisions generally impose strict recovery measures if the plan sponsor elects to seek recovery of the overpayment.... Notice 2024-77 is effective as of October 15, 2024, and provides interim guidance to help plan sponsors understand the correction options available to correct plan overpayments and maintain the tax- qualified status of the qualified plan."

IRS Issues New Pension Withholding Forms; Use Is Optional for 2022 (PDF)

"[T]hese forms are optional for 2022, but are required beginning January 1, 2023. The legacy 2021 Form W-4P is available for 2022 for both periodic and non-periodic payments ... A quick look at the pension-withholding rules and the new forms is set forth in [a table], along with some important questions that these changes raise."