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TRI-AD Newsletter, September 2013

Articles include: IRS Guidance on the DOMA Court Ruling and the Impact on Benefit Plans; Department of Labor Clarified DOMA Ruling's Impact on FMLA; HIPAA Omnibus Final Rule; Update on Summary of Benefits and Coverage (SBC) for 2014; and Final Regulations Published by IRS for Individual Health Insurance Mandate.

TRI-AD's Health and Welfare NewsLink, May 2011

This edition contains articles on the following: Over-The-Counter Medication Rules -- Where We Stand in 2011; Recap of Health Care Reform Provisions for Group Health Plans Effective in 2010 or 2011; California Conforms to Federal Law on Dependents to Age 26; and, Change in FSA Eligibility for Lactation Supplies.

The Downside to 401(k) Loans (PDF)

Excerpt: 401(k) conventional wisdom is that loans are just a part of any well-rounded 401(k) plan. Because TRI-AD tends to be a leader rather than blindly following conventional wisdom, we are going to express the opinion that largely unfettered access to 401(k) accounts is counter to the plans' purpose of providing a way for participants to save successfully for retirement.

IRS Issues Proposed Regs on Catch-Up-As-Roth Contributions Effective January 1, 2026

"For mid-year hires, you do not need to annualize their income or prorate the $145,000 threshold  ... If a participant's prior year FICA wages from the employer sponsoring the plan exceed $145,000 (indexed to 2024), then all catch-up contributions must be made on a Roth basis. It's not split between contributions made before they hit $145,000 in FICA wages and after.... Employers may automatically switch participants to Roth catch-up as long as the participant is given the opportunity to opt out of this deemed election and stop their deferrals when the applicable IRS limit is reached."

State-Mandated Auto-IRA Programs Boost Retirement Readiness

"The overarching goal is to provide a retirement savings option for small business employees who otherwise would not have access to such plans. As states start to adopt these Auto-IRA programs, an increase in new employer-sponsored retirement plans has occurred as employers take steps to move forward with their own retirement plans."

Quick Update on Final RMD Regs

"Despite suggestions to the contrary, beneficiaries of individuals who have begun required annual distributions must continue these distributions. Except for spousal distributions, the account balance must still be fully distributed within 10 years of the individual's death."

Correcting Mistaken Elections in Cafeteria Plans

"For erroneous elections, the IRS only allows an employer and employee to correct a mistaken election if there is 'clear and convincing evidence' that a mistake has occurred.... Examples may be wrong salary reductions, benefit elections entered into the HRIS/payroll system, or a delay in changing a salary reduction when a change in status occurs."

IRS Provides Proposed Regulations for Long-Term Part-Time Employees

"Even though written plan amendments do not have to be made until the end of the 2026 plan year, plan sponsors are required to operate their plans in compliance with these LTPT employee requirements starting with the 2024 plan year. Section 403(b) plans must implement these provisions for plan years beginning in 2025."

Lifestyle Spending Accounts: What Employers Need to Know

"LSAs can help with recruitment, retention, and productivity. Most importantly, they can help workers feel more satisfied with their jobs.... Because this program typically involves reimbursement on a taxable basis, employers have the freedom to be creative with plan designs."

2024 Compliance Calendar for Retirement Plans (PDF)

2-page calendar lists notable deadlines for retirement plans with calendar-year plan years.