On November 9, 2023, the IRS issued Revenue Procedure 2023-34 and an accompanying News Release announcing the annual inflation adjustments for more than 60 tax provisions for tax year 2024....more
On November 1, 2023, the IRS issued Notice 2023-75 and an accompanying news release, announcing retirement plan dollar limits and thresholds for 2024. Selected dollar limits and thresholds are summarized here, with references...more
A recent Social Security Administration news release announced that, for 2024, Social Security benefits will increase by 3.2%, and the Social Security taxable wage base will increase to $168,600 from $160,200.
The...more
The IRS periodically issues tax-related “Issue Snapshots” that can be of interest to employers and practitioners alike.
A recent “Issue Snapshot” discusses the timing rules that govern the deductibility of retroactive...more
10/31/2023
/ 401k ,
Benefit Plan Sponsors ,
Deadlines ,
Deferred Contributions ,
Employer Contributions ,
IRS ,
New Guidance ,
New Rules ,
Plan Documents ,
Profit Sharing ,
Retirement Plan ,
SECURE Act ,
Tax Deductions
The IRS recently issued a “Tax Tip” reminding that employers that offer IRC Section 127 educational assistance programs can use those programs until December 31, 2025, to pay principal or interest on any “qualified education...more
The IRS’s Office of Chief Counsel recently released Chief Counsel Advice Memorandum Number 202317020, which reiterates the longstanding substantiation requirements that apply to claims for payment or reimbursement of expenses...more
5/12/2023
/ Benefit Plan Reimbursements ,
Cafeteria Plans ,
Documentation ,
Employee Benefits ,
Flexible Savings Accounts (FSAs) ,
Health Savings Accounts ,
IRS ,
Medical Reimbursement ,
Out-of-Pocket Expenses ,
Policy Memorandums ,
Required Documentation ,
Self-Certification
The IRS recently issued Proposed Regulations that clarify and update existing rules governing how and when forfeitures must be used in qualified defined contribution (e.g., 401(k)) and defined benefit retirement plans. ...more
4/19/2023
/ Comment Period ,
Deadlines ,
Effective Date ,
Employee Benefits ,
Employer Contributions ,
Forfeiture ,
IRS ,
Plan Administrators ,
Proposed Rules ,
Qualified Retirement Plans ,
Retirement Plan ,
Vesting
On May 19, 2022, the IRS issued Notice 2022-28 (available at here), which provides guidance under the Internal Revenue Code (the “Code”) on the federal income and employment tax treatment of cash payments made by employers to...more
5/26/2022
/ Charitable Donations ,
Charitable Organizations ,
Corporate Counsel ,
Employment Tax ,
IRS ,
Military Conflict ,
New Guidance ,
Paid Leave ,
Paid Leave Tax ,
Refugees ,
Russia ,
Ukraine
On May 13, 2022, the IRS issued Notice 2022-27 (available here), which further extends, by six months, from July 1, 2022 to December 31, 2022, the IRS’s previously-granted temporary relief from the “physical presence...more
5/24/2022
/ Coronavirus/COVID-19 ,
Employee Benefits ,
IRS ,
Notarization ,
Physical Presence Test ,
Plan Participants ,
Relief Measures ,
Remote Notarization ,
Retirement Plan ,
Signatures ,
Time Extensions
The Affordable Care Act (ACA) information reporting deadlines for calendar year 2021 health coverage will soon be here.
Late last year, the IRS issued proposed regulations which made permanent an automatic 30-day extension...more
The IRS recently released two Information Letters addressing the substantiation rules that apply to health flexible spending account (FSA) debit cards. (As an aside, IRS Information Letters call attention to a...more
On July 26, 2021, the IRS issued Notice 2021-46, which provides additional Q&A guidance on the temporary 100% COBRA premium subsidy (and the related tax credit) provided by the American Rescue Plan Act of 2021 (the ARP,...more
On July 16, 2021, the IRS issued an updated version of the Employee Plans Compliance Resolution System (EPCRS), set forth in Revenue Procedure 2021-30. The new EPCRS modifies and supersedes the previous EPCRS, set forth in...more
On May 10, 2021, the IRS issued Notice 2021-26, which addresses the taxation of dependent care benefits, provided through a Code Section 129 dependent care assistance program (“DCAP”), available in taxable years ending in...more
Just think of the many dollars you spend on face masks, hand sanitizers and sanitizing wipes to help you and your family prevent the spread of the coronavirus disease (COVID-19). It all adds up very quickly and can make a...more
4/9/2021
/ Corporate Counsel ,
Employer Group Health Plans ,
Flexible Savings Accounts (FSAs) ,
HRA ,
Income Taxes ,
IRS ,
Medical Reimbursement ,
Personal Protective Equipment ,
Plan Documents ,
Reimbursements ,
Tax Deductions
The IRS has extended the last day of the initial remedial amendment period for 403(b) retirement plans from March 31, 2020, to June 30, 2020. Plan sponsors now have until June 30, 2020, to update their individually designed...more
The March 31, 2020 deadline to correct form defects in individually-designed 403(b) plan documents seemed a tiny speck on the distant horizon when the IRS announced it in early 2017. But now, March 31, 2020 looms large and...more