SEP plans: A cautionary tale about IRS audits
An employer’s failure to comply with SEP rules results in very costly penalties.
Employee Benefits
How to preserve retirement plan company matches
CPAs can play a vital role in helping plan sponsors cut costs and make the best of a challenging situation so the business can keep its company retirement plans intact.
Supervisory approval not needed for Sec. 72(t) additional tax
The Sec. 72(t) additional tax on early distributions is not a penalty that requires written supervisory approval.
Practical highlights of recent tax research
This article looks at recent academic research of interest to tax practitioners.
American Rescue Plan Act passes with many tax components
The $1.9 trillion coronavirus relief bill contains many tax provisions, including changes to the child tax credit and many other credits, making certain unemployment benefits tax-free in 2020, and a $1,400 recovery rebate credit for many individuals.
IRS provides cafeteria plan relief for the pandemic
The IRS issued guidance on how employers can amend their health flexible spending arrangements and dependent care assistance programs to respond to the coronavirus pandemic.
Sec. 457 government plan distributions compared to 401(k) distributions
This article examines the different contribution and distribution rules for the two types of plans.
Guidance permits change in vehicle use valuation during pandemic
In response to the COVID-19 pandemic, the IRS is allowing employers to switch from the vehicle lease valuation method to the cents-per-mile method for determining the value of an employee’s personal use of a vehicle during the pandemic.
Sec. 403(b) retirement plans: A comparison with 401(k) plans
Tax-exempt Sec. 501(c)(3) charities, public schools, and certain other entities can generally adopt either Sec. 403(b) or Sec. 401(k) retirement plans. While the rules applying to these plans are often substantially the same, there are many significant differences.
Taxpayer had unfettered control over SEP-IRA distribution
A distribution from a SEP-IRA to an LLC owned by the taxpayer is includible in the taxpayer’s gross income.
2021 inflation adjustments for retirement plans announced
The IRS announced that the income ranges for employee participation in workplace 401(k) plans and IRA contributions will increase from 2020 to 2021.
Self-certification of unclaimed property rollovers permitted
The IRS issued guidance adding state unclaimed property fund distributions to the list of reasons taxpayers may self-certify that they missed the 60-day deadline to roll over funds to a qualified retirement plan.
2021 standard mileage rates decrease
The IRS issued the 2021 standard mileage rates for use in computing the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes. The rates all decreased from 2021 to 2020.
Final rules govern disallowed transportation fringe benefits
The IRS finalized proposed rules on the disallowance of deductions for transportation fringe benefits, which was enacted by the law known as the Tax Cuts and Jobs Act.
IRS finalizes qualified plan loan rollover rules
The IRS finalized proposed regulations on the qualified plan loan rollover rules amended by the law known as the Tax Cuts and Jobs Act with just one change in response to a comment.
CARES Act changes to retirement plans
A distribution that meets the definition of a coronavirus-related distribution carries several advantages and tax planning opportunities.
Multiple-employer plans for small businesses
This item discusses some of the conditions set out in the rule for an employer group or association to join together to establish an MEP and who can be covered under the plan.
Applying grandfather status to certain health care arrangements
Regs. Sec. 54.9815-1251 defines a grandfathered health plan as coverage provided by a group health plan, or a health insurance issuer, in which an individual was enrolled on March 23, 2010.
Qualified transportation fringe disallowance
The article discusses the June 2020 proposed regulations and how they compare to the prior guidance in Notice 2018-99.
Private-equity funds allowed in ERISA-covered individual account plans
The DOL concluded that an asset allocation fund with a private-equity component may be offered to participants in an ERISA-covered individual account plan.
