Our last installment of our overview of the Proposed Regulations under Code Section 162(m) focuses on the transition or grandfather rules (“Grandfather Rules”) under the Proposed Regulations. Our prior installments have focused on the amendments to Code Section 162(m) enacted by the Tax Cuts and Jobs Act of 2017 (“TCJA”) and their effective date.
Read MoreThe prospect of a U.S. Department of Labor (“DOL”) investigation or Internal Revenue Service (“IRS”) examination of an employee benefit plan can be daunting for any plan sponsor. Understanding the process and adopting best practices, however, can make the experience less intimidating and improve the results for all parties.
Read MoreThis installment of the overview of the Proposed Regulations under Code Section 162(m) focuses on the definition of what is “applicable employee remuneration.” As a reminder, Code Section 162(m) generally limits the compensatory deduction to the first $1 million of “applicable employee remuneration” paid by a publicly held corporation to each covered employee.
Read MoreToday’s installment of our overview of the Proposed Regulations under Code Section 162(m) highlights the expansion of who is a “covered employee.” As a reminder, Code Section 162(m) generally limits the compensatory deduction to the first $1 million of compensation paid by a publicly held corporation to each “covered employee.”
Read MoreAs we noted in our December 24, 2019 blog entry, on December 16, 2019, the Treasury Department released proposed regulations (the “Proposed Regulations”) addressing the amendments made to Internal Revenue Code Section 162(m) by the Tax Cuts and Jobs Act (the “Amendment”).
Read MoreOn December 16, 2019, the Treasury Department released proposed regulations (the “Proposed Regulations”) to address the amendments made to Code Section 162(m) by the Tax Cuts and Jobs Act (the “Amendment”). As background, the Amendment eliminated the exclusion attributable to qualified performance-based compensation from the $1 million cap on the deductibility of compensation paid to certain executives by a publicly held corporation.
Read MoreIn 2017, the IRS significantly limited the ability of plan sponsors to request a determination letter that its individually-designed retirement plan met the tax qualification requirements of the Internal Revenue Code. Since that date, plan sponsors could request determination letters only upon the plan’s initial qualification or termination.
Read MoreThe Internal Revenue Service recently published final regulations modifying the rules relating to hardship distributions from Sections 401(k) and 403(b) plans. The final regulations reflect statutory changes affecting Section 401(k) and 403(b) plans, including changes made by the Bipartisan Budget Act of 2018.
Read MoreThe IRS has been issuing the 2017 Employer Shared Responsibility Penalty (ESRP) assessments (Letter 226-J). The Letter 226-J provides the IRS’ determination of whether an “applicable large employer” may be liable for an ESRP for a particular calendar year and shows the proposed assessment of the penalties based on the Forms 1094-C and 1095-C the employer filed with the IRS, as well as whether or not the employer’s employees received premium tax credits on their individual income tax returns.
Read MoreThe Internal Revenue Service set March 31, 2020 as the last date of the remedial amendment period for tax-exempt organizations and public school systems to self-correct plan document defects in their Section 403(b) plans. The “remedial amendment period”, or “RAP” is a period during which a 403(b) plan can be amended to comply with the technical requirements of Section 403(b) of the Internal Revenue Code and related IRS regulations.
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