The two-year budget agreement passed by Congress on Friday, February 9th, and signed by President Trump later that day, includes tax policy changes that affect qualified retirement plans. Specifically, qualified retirement plan hardship withdrawal operations will be impacted by the Bipartisan Budget Act of 2018 (the Budget Act) as follows: Removal of the six-month prohibition […]

An article authored by Kelly S. Kuglitsch has been published in the January/February 2018 issue of the Journal of Corporate Taxation. The article provides an overview of the tax code section that governs most forms of non-qualified deferred compensation and executive compensation arrangements, as well as the reasons for its enactment and practical tips for […]

Employer sponsors of nonqualified deferred compensation (NQDC) plans, as well as the executives and other service providers, who benefit from them, can breathe a sigh of relief. The ability to reward and retain key employees with incentive and compensation plans that provide a current opportunity to earn a payment to be provided (and taxed) in […]

Buried in IRS guidance issued on November 2 is news that the IRS will soon be issuing notices to employers of potential ACA taxes. While the ACA employer payments are widely referred to as “penalties,” they are actually “assessable payments” in the form an excise tax. Specifically, the IRS has announced that applicable large employers […]

The Internal Revenue Service has released the cost-of-living adjustments to the dollar limits under various employer-sponsored benefit plans for 2018. Several key limits (indicated in bold, below) have been increased for 2018. Employer-sponsors of benefit plans should update payroll and plan administration systems for the 2018 limits and ensure that any new limits are incorporated […]

Last week attorney Kelly Kuglitsch was a panelist for a presentation entitled “Fiduciary Fundamentals: The Growing Need for Fiduciary in a Corporate Sponsored Retirement Plan” at the WI SHRM State Conference in Wisconsin Dells. Kelly shared insights on what can happen when retirement plan fiduciary fundamentals are overlooked or misunderstood. She also described real life examples […]

If your organization is a public school or university, a tax-exempt charter school or hospital, a church, church-affiliated entity, or other tax-exempt organization, it is eligible to sponsor a 403(b) retirement plan. For any eligible sponsor of a 403(b) plan, it is critical, to ensure the ongoing tax-compliance of the plan, to conform your document […]

Attorney Kelly Kuglitsch presented “Section 409A Issue Spotting” for the S-Corporation Subcommittee of the Taxation Section at the ABA 2017 Joint Fall CLE Meeting last week in Austin, Texas. Kelly highlighted some ways in which the current employment-related practices of S corporations may inadvertently result in violations of Code Section 409A, and described how to […]

A recent Court of Appeals decision provides a tangible example of the costs of ignoring employee benefit compliance requirements.  In Tatum v. SFN Group, Inc. (No. 16-11966, 6/23/17), the 11th Circuit affirmed that the purchase price paid for a CFO-outsourcing firm was properly reduced in light of compliance errors in the operation of the company’s […]

At 11:59 p.m. on Friday, June 9, 2017 (the Effective Date), the ERISA definition of a fiduciary will expand to include, for the first time, many financial firms and advisors that provide investment advice to certain employer-sponsored retirement plans and individual retirement accounts (IRAs).  This is because part of the final Department of Labor (DOL) […]

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