Legislative & Regulatory Updates

Tax Reform Takes a Cut at Welfare and Fringe Benefits

November 10, 2017

In the past couple of days, we have looked at H.R. 1 – Tax Cuts and Jobs Act (the “Bill”) and its impact on executive compensation and nonqualified deferred compensation plans and tax-qualified plans. Today we will look at the impact of the Bill on welfare and fringe benefits.

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Will Tax Reform Change Code Section 409A?

November 10, 2017

As we discussed earlier this week, (see Proposed Tax Bill Radically Alters Nonqualified Deferred Compensation and Executive Compensation), H.R. 1 – Tax Cuts and Jobs Act (the “Bill”), took aim at executive compensation. Of significance, the limited tax deferral opportunities under the proposed rules could effectively “kill” nonqualified deferred compensation plans. The Bill in its current form leaves the tax treatment of nonqualified deferred compensation unchanged.

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Qualified Retirement Plans are Winners under the Tax Cuts and Jobs Act

November 9, 2017

The proposed tax reform bill, H.R. 1 - Tax  Cuts and Jobs Act Bill, does not provide for any sweeping changes to the qualified retirement plan area, but does propose the loosening of certain rules that would be very welcome.

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Proposed Tax Bill Radically Alters Nonqualified Deferred Compensation and Executive Compensation

November 8, 2017

Nonqualified deferred compensation has long been used by employers as a cost-effective and flexible tool to attract, engage, and retain top talent within an organization. This may all change in the not so distant future. On November 2, 2017, the House Ways and Means Committee released proposed tax legislation — H.R. 1 — Tax Cuts and Jobs Act (the “Bill”).

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2018 Employee Benefit Plan Limits

The 2018 Findley Davies | BPS&M Employee Benefit Plan Limits publication provides a quick reference for Employee Benefit Plans, Health Savings Accounts, Part D Standard Benefit, and Social Security limits and figures.

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IRS Increases Health FSA Limit for 2018

October 24, 2017

Plan sponsors will need to review their cafeteria plans to see if an amendment is necessary to implement the new maximum limit on contributions to health flexible spending accounts.

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Retirement and Health & Welfare Plan Sponsors: Reminders of What's New in 2018

October 13, 2017

Plan sponsors of retirement, health and welfare plans have a relatively short list of changes in the employee benefits arena that begin on or around January 1, 2018. However, some changes were announced so long ago, they would be easy to forget. Here’s a compilation.

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2018 Funding Interest Rates Released for Pension Plans

October 16, 2017

The segment rates required to be used for 2018 funding valuations were released on September 14, 2017.

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More Retirement Plan Help for Hurricane Victims

October 11, 2017

The Internal Revenue Service (IRS), Pension Benefit Guaranty Corporation (PBGC) and Department of Labor (DOL) announced relief for victims of Hurricane Irma and Hurricane Maria that mirrors the relief provided for victims of Hurricane Harvey only weeks earlier. The relief includes easier access to loans and hardship withdrawals, and the extension of certain deadlines.

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PCORI Fee Adjusted for Current Plan Year

October 11, 2017

As part of the Affordable Care Act fee to fund the Patient-Centered Outcomes Research Institute (PCORI), the IRS recently released Notice 2017-61, stating that for plan years ending on or after October 1, 2017 and before October 1, 2018, the fee applicable dollar amount will be increased from $2.26 to $2.39 per covered member. This dollar amount will be used to calculate the PCORI fee amount payable in July 2018 using the IRS Form 720.

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IRS Issues Final Regulations on Updated Mortality Tables

October 6, 2017

The IRS issued final regulations on October 3, 2017 describing the updated mortality tables used to measure single-employer defined benefit retirement plan liabilities under ERISA, starting in 2018.

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