In Rev. Proc. 2011-49, the IRS updated the procedures for sponsors and practitioners to request opinion and advisory letters regarding qualification under Secs. 401 and 403(a) for preapproved plans.
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Employee Benefits
Retiree Tax Planning for Eligible Retirement Plans of Tax-Exempt Entities
Most types of tax-exempt entities may establish unfunded eligible deferred compensation plans under Sec. 457, sometimes called “top-hat” plans because they are designed for members of management and highly compensated individuals.
Transit Pass and Vanpool Benefits to Shrink in 2012
The monthly tax exclusion for employer provided transit pass and vanpool benefits will shrink to $125 in 2012, from the current $230, when the provision providing for parity with employer-provided parking benefits expires at the end of this year.
Current Developments in Employee Benefits and Pensions (Part II)
This two-part article covers significant developments in employee benefits. Part II focuses on guidance released under PPACA and chages to qualified plan rules.
Providing Fringe Benefits to S Corporation Employees
In an S corporation, employee fringe benefits paid on behalf of a 2% shareholder are subject to special rules.
Witnesses Tell Congressional Subcommittee Small Business Health Tax Credit Is Too Complicated
A tax credit enacted to encourage small businesses and tax-exempt organizations to provide health insurance coverage for employees is too complicated and is not meeting its goal, witnesses told a congressional panel on November 15.
Current Developments in Employee Benefits and Pensions (Part I)
This article covers significant developments in late 2010 and 2011 in employee benefits, including employment taxes, executive compensation, health and welfare benefits, and qualified plans. Part I focuses on guidance released and changes to the rules for employment taxes and executive compensation.
Inflation Adjustments Made to Many Tax Items for 2012
The IRS released its annual revenue procedure making inflation adjustments to the income tax tables and many tax credits and other items for tax years beginning in 2012.
Guidance Issued on Tax Treatment of Business Cell Phones
The IRS issued a notice on September 14 providing guidance on the tax treatment of employer-provided cell phones now that they have been removed from the definition of listed property.
Health Care Premium Credit Rules Proposed
The IRS released proposed regulations implementing the health insurance premium tax credit, which is effective starting in 2014.
Equity-Based and Nonqualified Deferred Compensation Plans
This article provides an overview of the federal income taxation rules governing equity-based compensation plans as well as nonqualified deferred compensation plans.
IRS Will Allow Costs of Breast Pumps as Deductible Medical Expenses
The IRS has announced that it will treat expenses for breast pumps and supplies that assist in lactation as deductible medical expenses, and that the amounts that a taxpayer is reimbursed for these expenses will not be income to the taxpayer.
Retirement Plans, IRAs, and Annuities: Avoiding the Early Distribution Penalty
This article discusses how the 10% penalty on early distributions and the exceptions apply to various types of plans, accounts, and annuities.
IRS Issues First Guidance on Nonprofit CO-OP Health Insurers
The IRS issued its first guidance on the requirements for new qualified nonprofit health insurance issuers under Sec. 501(c)(29) and has requested comments on specific issues.
Required Minimum Distribution Alternatives for IRA Beneficiaries
This article discusses the distribution options available to IRA beneficiaries, with an emphasis on opportunities to control the timing of the distribution period and actions that must be taken on a timely basis to achieve the desired outcome.
Sec. 409A Update
This item provides an update on Sec. 409A guidance and discusses a recent case that addresses the valuation of payments subject to the Sec. 409A six-month delay on distribution of payments to specified individuals.
Guidance Issued on In-Plan Roth Rollovers
The IRS has issued guidance on how plan participants can make rollovers from a 401(k) or 403(b) plan to a designated Roth account in the same plan (Notice 2010-84).
Final Form and More Guidance on Small Business Health Care Tax Credit
The IRS released a new form and guidance relating to the small business health care tax credit for the 2010 tax year. The guidance discusses issues relating to employers’ eligibility for the credit and other eligibility issues.
Additional Relief Under Sec. 409A Document Failure Correction Program
The IRS issued further relief for nonqualified deferred compensation plans covered by Sec. 409A, expanding the types of plans eligible for relief. It also provides an additional method of correction and transition relief for certain plan document failures relating to payments at separation from service.
Health Care Insurance Mandate Held Unconstitutional
A federal district court has held that the health care reform legislation’s mandate that individuals obtain health insurance is unconstitutional. In so holding, however, the court severed that mandate from the rest of the health care reform legislation and refused to enjoin enforcement, pending appeal of the case.
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