Employee Benefits Blog

IRS Eases Procedure for Late Qualified Plan and IRA Rollovers

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.

Read More

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

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.

Read More

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

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.)

Read More

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

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

Read More

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

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.

Read More

Transitional Reinsurance Program Fee Reporting Due Date is Extended to December 5

The Patient Protection and Affordable Care Act (ACA) established the transitional reinsurance program to stabilize premiums in the individual market place by reducing the costs of high-risk enrollees. The program requires health insurance issuers and certain self-insured group health plans offering major medical coverage to make contributions under the program for 2014 through 2016.  The fee is $63 per covered life in 2014 and will decrease in 2015 and 2016.

Read More