INFORMATION OF USE TO BENEFIT PLAN SPONSORS AND BENEFIT ADVISERS

IRS Lists Solo 401(k) Plans as Audit Target

If your business sponsors a “solo 401(k)” plan, it may be in the crosshairs of the Internal Revenue Service.  The Service’s TE/GE (Tax Exempt and Government Entities) division has identified one-participant 401(k) plans as among its current audit initiatives.  In its web posting announcing the initiative, TE/GE states:  “[t]he focus of this strategy is to review one-participant 401(k) plans to determine if there are operational or qualification failures, income and excise tax adjustments, or plan document violations.” By way of background, a solo 401(k) plan is a traditional 401(k) plan covering a 100%…

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Fast Facts About the COBRA Subsidy

The recently enacted American Rescue Plan Act of 2021 (ARPA) contains a number of financial aid measures to help Americans coping with the economic fallout of the COVID-19 pandemic, including a 100% subsidy of COBRA continuation coverage premiums for a period of up to six months.  The subsidy provisions are set forth at Title IX, Subsection F of ARPA, Section 9501, titled “Preserving health benefits for workers.”  The following fast facts on the COBRA subsidy will help employers and benefit advisors prepare for more detailed guidance and model notices that are soon to…

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Happy 10th Birthday, EforERISA

December 16, 2020 marks the 10th anniversary of our first post on this blog and this week EforERISA is debuting a fresh new look and redesign courtesy of Ashli Smith and her team at Spotted Monkey Marketing. We are always looking for ways to make this site better and more impactful so your constructive criticism and comments on the redesign are welcome. We also welcome suggestions on topics to cover in our future posts. 2021 promises to be a busy year on the benefits front, with a new administration in gear and light…

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“I am a benefits (ERISA) attorney. I help businesses prevent, and fix, problems with their employee benefit plans in order to preserve the tax-qualified status of those plans, and ultimately the saleability of their businesses.”

-Christine P. Roberts

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Christine P. Roberts
Mullen & Henzell L.L.P.
phone: (805) 966-1501
email: croberts@mullenlaw.com

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Recent Posts

IRS Lists Solo 401(k) Plans as Audit Target

If your business sponsors a “solo 401(k)” plan, it may be in the crosshairs of the Internal Revenue Service.  The Service’s TE/GE (Tax Exempt and Government Entities) division has identified one-participant 401(k) plans as among its current audit initiatives.  In its web posting announcing the initiative, TE/GE states:  “[t]he focus of this strategy is to review one-participant 401(k) plans to determine if there are operational or qualification failures, income and excise tax adjustments, or plan document violations.” By way of background, a solo 401(k) plan is a traditional 401(k) plan covering a 100%…

Continue reading → IRS Lists Solo 401(k) Plans as Audit Target

Fast Facts About the COBRA Subsidy

The recently enacted American Rescue Plan Act of 2021 (ARPA) contains a number of financial aid measures to help Americans coping with the economic fallout of the COVID-19 pandemic, including a 100% subsidy of COBRA continuation coverage premiums for a period of up to six months.  The subsidy provisions are set forth at Title IX, Subsection F of ARPA, Section 9501, titled “Preserving health benefits for workers.”  The following fast facts on the COBRA subsidy will help employers and benefit advisors prepare for more detailed guidance and model notices that are soon to…

Continue reading → Fast Facts About the COBRA Subsidy

Happy 10th Birthday, EforERISA

December 16, 2020 marks the 10th anniversary of our first post on this blog and this week EforERISA is debuting a fresh new look and redesign courtesy of Ashli Smith and her team at Spotted Monkey Marketing. We are always looking for ways to make this site better and more impactful so your constructive criticism and comments on the redesign are welcome. We also welcome suggestions on topics to cover in our future posts. 2021 promises to be a busy year on the benefits front, with a new administration in gear and light…

Continue reading → Happy 10th Birthday, EforERISA

In Rehire Mode? Keep March 31, 2021 in Mind for Your 401(k) Plan

If your business is one of the many that reduced employees in the early days of the COVID-19 pandemic, you need to keep March 31, 2021 marked on your calendar, particularly if you are fortunate enough to be ramping up activity and adding workers back to your payroll. As explained in our earlier post, when employer action, including as the result of an economic downturn, results in 20% or more of the population of an employee retirement plan being terminated from employment, a presumption arises that a “partial plan termination” has occurred, with…

Continue reading → In Rehire Mode? Keep March 31, 2021 in Mind for Your 401(k) Plan

Honey, I Shrunk the Incentive: EEOC Proposes Wellness Regulations

EEOC regulations proposed in the final days of the Trump Administration would, if finalized, reduce the permissible incentive for participatory wellness programs to a de minimis amount – such as a water bottle or T-shirt.  The current incentive cap is equal to 30% of an individual group health premium, which works out to around $180 per month.  The Biden Administration has withdrawn the proposed regulations from publication in the Federal Register under a regulatory freeze pending review.  Although they may not be finalized in their current form, the proposed regulations reflect the thinking…

Continue reading → Honey, I Shrunk the Incentive: EEOC Proposes Wellness Regulations