The IRS has recently released the latest version of its correction program for retirement plans (referred to as EPCRS or Rev. Proc. 2021-30) that will make it easier for a plan sponsor to correct certain plan errors. One common error that can arise during the administration of a 401(k) plan is the improper exclusion of an employee from making ...
Today, in a 7-2 decision, the U.S. Supreme Court dismissed a challenge to the Affordable Care Act. The decision leaves the law intact and allows approximately 31 million individuals to keep their coverage under the ACA. The suit had been brought by several Republican-led states and the former Trump administration, and sought to have the entire ...
Earlier this week, the IRS issued Notice 2021-31 which provides some much sought after guidance on the new COBRA subsidy in the form of FAQs. As part of this new guidance, the IRS provided some clarity on the definition of “involuntary termination” for purposes of eligibility for the subsidy. The guidance emphasizes the determination of an ...
The IRS released its annual inflation adjustment for Health Savings Accounts (HSAs) for 2022, the 2022 minimum deductible and maximum out-of-pocket limits associated with a high deductible health plan (“HDHP”), as well as the excepted benefit HRAs (EBHRAs) maximum for plan years beginning in 2022. For those already planning for next year ...
As discussed in our March blog post, the American Rescue Plan Act allowed employers with a qualified dependent care assistance program (“DCAP”) to increase the DCAP flexible spending limit in 2021 from $5,000 to $10,500. DCAP participants also received relief from the Consolidated Appropriations Act of 2021, to carry over unused DCAP ...
Most of the concentration in the employee benefits world over the past year or so has been dedicated to getting up to speed on newly passed legislation, much of it COVID related, and all of the subsequently issued administrative guidance. But with all of the changes that have occurred in that time, compliance issues and corrections have remained a ...
Earlier this month, in response to a recent federal report recommending guidance to eliminate cybersecurity risks to retirement plans, plan participant data, and plan assets, the Employee Benefits Security Administration division of the DOL (“EBSA”) published cybersecurity guidance for ERISA-covered retirement plans. The ...
We have previously written blog posts on the COBRA subsidy added by ARPA, the follow-up FAQs that were recently issued, and the new notice requirements for the COBRA subsidy. Those posts were primarily focused on the federal COBRA laws, which generally apply to ERISA group health plans maintained by private-sector employers with twenty or more ...
This morning the DOL issued the much anticipated guidance on the COBRA subsidies provided for in the American Rescue Plan Act (“ARPA”). There were not many surprises, but to see what we learned, check out this post. To see what we already knew, check out our prior post.
The DOL also issued the model notices that Congress mandated them to issue as ...
As discussed in our previous post, Congress recently passed a 100% subsidy for certain individuals who enroll in COBRA continuation coverage. Today, the DOL issued FAQs to answer several of the questions raised by the new subsidy.
As a reminder, the subsidy provides that assistance eligible individuals are not required to pay their COBRA ...