By Todd Castleton and Harrison Taylor
House Republicans this week released much-anticipated legislation to reform individual and corporate income taxation. Titled the “Tax Cuts and Jobs Act,” the legislation proposes substantial revisions to the Internal Revenue Code, including provisions that may impact qualified retirement plans as well as nonqualified deferred compensation and certain health and welfare benefits. Highlighted here are the significant proposals relating to qualified...Continue Reading
The tax bill issued yesterday contains a number of provisions that, if implemented, will result in dramatic changes to the taxation of certain compensation arrangements. Of particular concern:
- The performance-based compensation exception to the section 162(m) $1 million compensation deduction limitation would be eliminated, and the CFO would be added to the group of executives that are subject to the 162(m) limitation.
- Employer stock options would be treated as deferred compensation and...Continue Reading
Substantial new guidance has been issued on QSEHRAs, the new type of health reimbursement arrangement described in Code Section 9831(d) that is exempt from ERISA’s requirements that apply to group health plans. If an employee has minimum essential coverage (MEC), reimbursements from these accounts for medical expenses (including reimbursements for premiums for medical coverage) are excludable from income. Unfortunately, these arrangements are only available to a small employer that is not...Continue Reading
By: Sterling Perkinson and Harrison Taylor
On October 19th, the IRS released a memorandum titled “Missing Participants and Beneficiaries and Required Minimum Distributions” (the “Memo”) to its plan auditors that provides guidelines for when a plan’s efforts to locate missing participants and beneficiaries should be challenged on audit. As noted below, plans must keep in mind that the Memo addresses only IRS audit standards. The Department of Labor (the “DOL”) has its own...Continue Reading
Yesterday, the IRS released inflation adjusted benefit limitations for retirement plans and welfare plans. Our legal alert sets forth the newly released benefit limitations, along with the HDHP and HSA limitations released earlier this year.
2018 Legal Alert