Employee Benefits Blog

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IRS Announces Pension Plan Limitations and Other Inflation-Adjusted Amounts for 2017

E. Drew Cheney Posted By
E. Drew Cheney

On October 27, 2016, the Internal Revenue Service issued Notice 2016-62 to announce 2017 inflation adjustments affecting pension plans and other retirement-related items.

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IRS Eases Procedure for Late Qualified Plan and IRA Rollovers

E. Drew Cheney Posted By
E. Drew Cheney

Taxpayers who wish to transfer balances between IRAs and/or qualified retirement plan accounts can accomplish this on a tax-free basis either by making a direct trustee-to-trustee transfer between accounts or by making a qualifying rollover within 60 days. The Internal Revenue Service (IRS) has recently issued guidance that will make it easier, in many circumstances, for account holders to avoid a taxable distribution if they miss the 60 day deadline.

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Non-Qualified Deferred Compensation Plans: Don’t Forget FICA

E. Drew Cheney Posted By
E. Drew Cheney

A fundamental but sometimes overlooked aspect of implementing a non-qualified deferred compensation (NQDC) plan is the issue of FICA payment. We have encountered a few situations recently where employers have set up NQDC plans with everything, including an exhaustive Section 409A analysis, executed in a seemingly perfect fashion, with one glaring exception: the deferrals were not included in income for FICA purposes at the time of vesting. Unfortunately, it appears that, despite everyone’s best intentions, this important step can fall through the cracks at the time of implementation.

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Individual Health Insurance Policies and the ACA: IRS Issues Additional Guidance

E. Drew Cheney Posted By
E. Drew Cheney

On February 18, the IRS issued Notice 2015-17 to provide yet more guidance on the applicability of the “market reform” provisions of the Affordable Care Act to arrangements under which an employer pays for, or reimburses the cost of, some or all of the cost of an employee’s individual health insurance premiums.  This guidance is the latest in a series of pronouncements issued by the IRS and the Department of Labor over the past couple of years.  (We previously wrote about the prior guidance here.)

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Tom Brady and the Super Bowl Truck: Can He Avoid the Sack?

E. Drew Cheney Posted By
E. Drew Cheney

Like most New Englanders, we at BNN are still basking in the afterglow of the Patriots’ exciting and improbable Super Bowl victory over the Seahawks. As has been widely reported, Tom Brady was named the Super Bowl Most Valuable Player for orchestrating the two fourth quarter touchdown drives that left the Patriots up by 4 points with just over 2 minutes to play. As the award winner, he was presented a 2015 Chevrolet Colorado truck worth roughly $34,000. However, he has announced that he will transfer the truck to rookie cornerback Malcom Butler, whose phenomenal last-minute interception snatched victory from the jaws of defeat.

Posted Under: Gift tax, Prizes and awards

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Employers Can’t Reimburse the Cost of Employees’ Individual Health Policies on an After-Tax Basis

E. Drew Cheney Posted By
E. Drew Cheney

As we discussed in a previous post, the IRS issued Notice 2013-54 in September 2013 to discuss the application of the “market reform” provisions of the Affordable Care Act (ACA) to certain employer healthcare arrangements, including, among others, arrangements under which employers pay for employees’ individual health insurance policies, either by paying the insurance company directly or by reimbursing the employee.