News & Analysis as of

Internal Revenue Service Pensions

The United States Internal Revenue Service is a bureau of the United States Department of the Treasury. The IRS is charged with collecting revenue and enforcing the Internal Revenue Code.  
Husch Blackwell LLP

IRS Issues Guidance on Uncashed Retirement Plan Checks

Husch Blackwell LLP on

The IRS has released Revenue Ruling 2025-15, which clarifies the federal tax withholding and reporting responsibilities of retirement plan administrators when a distribution check is issued but remains uncashed and a...more

Ice Miller

Avoiding Impermissible CODAs in Governmental Pension Plan Reform and Enhancement

Ice Miller on

One topic that frequently arises is whether a qualified governmental plan, under Internal Revenue Code (Code) Section 401(a), may allow an employee the election on whether to contribute at different pretax employee...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Timely use forfeitures

ERISA is filled with traps for the unwary. Some are complex, hiding in layers of regulatory nuance. Others are deceptively simple—like plan forfeitures. Yes, I’m talking about those dollars left behind when participants fail...more

Husch Blackwell LLP

Time to Restate? It's Not Too Late! Upcoming Restatement Deadlines for Pre-Approved Retirement Plans

Husch Blackwell LLP on

The Internal Revenue Service (IRS) regularly requires retirement plans to incorporate new laws and regulations. To ensure that pre-approved retirement plans incorporate these required legal and regulatory updates, the IRS...more

Cole Schotz

RetireReady NJ: Reminder About The Requirements Under The New Jersey Secure Choice Savings Program Act

Cole Schotz on

Employers with at least 25 employees in New Jersey that do not already offer a qualified retirement plan to employees must take action to facilitate the RetireReady NJ Retirement Savings Program (“RetireReady NJ”)....more

Baker Donelson

Multiemployer Withdrawal Liability Can Extend Beyond the Withdrawing Employer

Baker Donelson on

A recent case from the United States Court of Appeals for the Sixth Circuit, Local No. 499, Board of Trustees of Shopmen's Pension Plan v. Art Iron, Inc., et al., 177 F. 4th 923 (6th Cir. 2024), clarifies a significant legal...more

Proskauer - Employee Benefits & Executive...

Sixth Circuit Adopts IRS Standard to Determine Whether Activity Constitutes “Trade or Business” for Withdrawal Liability Purposes

Under 29 U.S.C. § 1301(b)(1), all “trades or businesses” under common control with an employer that has withdrawn from a multiemployer pension plan are jointly and severally liable for the employer’s withdrawal liability. ...more

Proskauer - Employee Benefits & Executive...

Reminder: Is Your Individually Designed 403(b) Plan Eligible for a Determination Letter?

Plan sponsors of Code Section 403(b) tax-sheltered annuity plans (“403(b) plans”) that have not already done so may want to consider applying for an IRS determination letter or planning and budgeting for the process next year...more

Jackson Lewis P.C.

Use of Plan Forfeitures Not the Slam Dunk It Used to Be

Jackson Lewis P.C. on

A recent rash of class action lawsuits in California claim that using forfeitures to reduce future employer contributions to tax-qualified retirement plans runs afoul of the Employee Retirement Income Security Act (ERISA)....more

Akin Gump Strauss Hauer & Feld LLP

DOL Issues Final Amendment to the QPAM Exemption

On April 2, 2024, the U.S. Department of Labor (DOL) announced its final amendment to prohibited transaction class exemption 84-14 (the QPAM Exemption). The QPAM Exemption is a broad-based class exemption relied upon by many...more

Patterson Belknap Webb & Tyler LLP

Does Your Retirement Plan Need a 'PLESA'?

Pension-Linked Emergency Savings Accounts (“PLESAs”) are a special retirement plan feature created under SECURE ACT 2.0. PLESAs were first permitted to be made available to participants as of January 1, 2024. PLESAs, which...more

Morgan Lewis - ML Benefits

Reminder to Multiemployer Pension Plan Administrators: New Federal Income Tax Withholding Election Forms Are Mandatory

In January 2022, the Internal Revenue Service (IRS) changed the withholding election rules applicable to distributions from pension plans (a term that includes 401(k) plans, money purchase pension plans and defined benefit...more

Brownstein Hyatt Farber Schreck

Employee Benefits-Related Limits For 2024

This chart sets forth some of the annually adjusted dollar limits that impact employee benefits, as published by the Internal Revenue Service, the Social Security Administration and the Pension Benefit Guaranty Corporation....more

Dickinson Wright

Mastering Retirement Plan Forfeitures: A Deep Dive into IRS’s 2023 Proposals & Fiduciary Litigation Trends

Dickinson Wright on

When a participant terminates employment without being fully vested in their qualified retirement plan account, the non-vested portion of the account is a “forfeiture.” While forfeitures are a common element of most...more

Proskauer - Employee Benefits & Executive...

IRS Releases Annual Increases to Qualified Retirement Plan Limits for 2024

On November 1st, the IRS released a number of inflation adjustments for 2024, including to certain limits for qualified retirement plans. As expected, this year’s adjustments are more modest than last year’s significant...more

Seyfarth Shaw LLP

Want to Put More Away in Your 401(k)? Qualified Plan Limits Generally Increase in 2024

Seyfarth Shaw LLP on

Seyfarth Synopsis: The IRS just announced the 2024 annual limits that will apply to tax-qualified retirement plans. For a third year in a row, the IRS increased the annual limits, allowing participants to save even more in...more

Freeman Law

Malta Pension Funds

Freeman Law on

Amplifying its efforts to crack down on U.S. taxpayers’ use of Malta pension funds to attempt to achieve federal income tax savings, the IRS recently has issued proposed regulations identifying these funds as listed...more

McDermott Will & Emery

IRS Criminal Investigation Division Is on the Hunt for Malta Pension Plan Participants and Promoters

McDermott Will & Emery on

There has been a growing trend of US taxpayers contributing non-cash assets, such as appreciated property, securities and cryptocurrency, into Maltese pension plans since the US-Malta Tax Treaty went into effect in 2011....more

Freeman Law

The Cautionary Tale of the Malta Pension Plan: First, Civil Audits, Now Criminal Investigations

Freeman Law on

Few things scare a taxpayer more than the IRS knocking on their door. But when the taxpayer realizes that the person knocking on the door is a Special Agent of the Criminal Investigation Division (“CID”) of the IRS, well…...more

Morgan Lewis - ML Benefits

Reminder: Form W-4P Withholding Certificates on Periodic Pension or Annuity Payments Must Be Valid and Up to Date

Recipients of periodic or annuity retirement plan distributions provide a Form W-4P to payors of pension or annuity payments for the correct amount of federal income tax to be withheld from these distributions. (While...more

Groom Law Group, Chartered

Proposed Treasury Regulation on Constructing Yield Curve for Funding Purposes

On June 23, the Treasury published proposed regulations on the methodology for constructing the yield curve that underlies how present values are calculated for defined benefit plans (88 Fed Reg 41047).  The proposed...more

Proskauer - Employee Benefits & Executive...

Self-Help: The IRS Provides Interim Guidance for Self-Correction under the SECURE Act 2.0

The IRS recently issued Notice 2023-43 providing new interim guidance for self-correction of plan errors. This guidance applies to corrections made prior to the anticipated issuance of revisions to the Employee Plans...more

Faegre Drinker Biddle & Reath LLP

Final Changes Announced to Forms 5500 and 5500-SF

The Department of Labor (DOL) announced that it has finalized, together with the Internal Revenue Service (IRS) and Pension Benefit Guarantee Corporation (PBGC), the third and final round of revisions to the Form 5500 Annual...more

Lerch, Early & Brewer

10% Tax for Early Withdrawal from IRA is not a Penalty Requiring an IRS Supervisor’s Approval

Lerch, Early & Brewer on

Grajales v. Commissioner - In Grajales v. Comm’r of Internal Revenue, the United States Court of Appeals for the Second Circuit addressed whether the ten percent exaction under Section 72(t) (Exaction) is considered a...more

Groom Law Group, Chartered

IRS Rules That Payment of 401(h) Account Benefits to Pension-Eligible Active Participants Won’t Jeopardize Plan Qualification

A recent IRS letter ruling provides helpful clarification on the interaction of in-service distributions to active employees (Code section 401(a)(36)) and the requirement that Code section 401(h) accounts provide only retiree...more

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