Employee Benefits Blog

Archives for 2016

Read More

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

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.

Read More

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.