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Our Attorneys

DISCLAIMER: This blog is published for general information only - it is not intended to constitute legal advice and cannot be relied upon by any person as legal advice.  U.S. Treasury Regulations require us to notify you that any tax-related material in this blog (including links and attachments) is not intended or written to be used, and cannot be used, for the purpose of avoiding tax penalties, and may not be referred to in any marketing or promotional materials.  While we welcome you to contact our authors, the submission of a comment or question does not create an attorney-client relationship between the Firm and you. 


Proposed Regulations on 401(k) Hardship Withdrawals

Last month, the Treasury Department issued highly anticipated proposed regulations governing hardship withdrawals from 401(k) plans.  The proposed regulations address recent statutory changes made to the hardship withdrawal rules under Code Section 401(k), including:

  • permitting the withdrawal of earnings on elective deferrals in the event of a hardship;
  • permitting the withdrawal of QNECs, QMACs, and earnings on such contributions in the event of a hardship; and
  • providing that a distribution will not be treated as failing to be made upon a participant’s hardship solely because the participant does not take any available loan under the plan.

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Join Us for Managing 401(k) Plan Fiduciary Risk on 11/8

In today’s ever-changing and challenging 401(k) environment, plan sponsors find themselves in a new and seemingly complex environment. Regulations are becoming increasingly complicated, the number of class action lawsuits continues to rise, and employees insist on access to less expensive options with better performance, without understanding what the fees include. Retirement plan sponsors have an obligation and responsibility to reduce their fiduciary risk and improve the effectiveness of their retirement program for their participants.

Joined by Muriel Knapp, of Mercer, Verrill Dana attorney and Chair of the firm's Employee Benefits & Executive Compensation Group, Suzanne Meeker, will provide a unique perspective on fiduciary standards in light of the current ERISA litigation landscape. The two will also discuss how the fiduciary processes play out in litigation, insights on successful strategies to implement, and common pitfalls to avoid.

The seminar will take place on Thursday, November 8, 2018 from 8:00am to 10:30am. Click here to register for this complimentary seminar.

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FMLA, Disability, & Sick Leave Management: A Panel Discussion

Join the Maine Employee Benefits Council (MEBC) on Wednesday, October 17 for a panel discussion on the Family Medical Leave Act (FMLA), disability, and sick leave management. Panelists will discuss federal and state specific paid leave laws, examine the requirements for Maine employers who have employees in the particular states, best practices for managing leave, and options for using a third-party administrator for leave management. During the seminar, Verrill Dana attorney Doug Currier, Chair of the firm's Labor & Employment Group, will review the legal aspects of leave alongside a panel of representatives from the U.S. Department of Labor, third-party leave administrators, HR managers, and a fellow employment lawyer. 

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New Tax Credit for Paid Leave – Part 2: IRS Issues Helpful Guidance

As expected, the IRS recently issued additional guidance concerning the new paid leave tax credit codified as Code Section 45S. (You can read Part 1 of this series here.)  The guidance, set forth in IRS Notice 2018-17, is presented in the form of 34 questions and answers.  The questions and answers provide guidance to help determine which employees are “qualified” for purposes of the credit, how a year of service is determined, what constitutes wages, how the credit is calculated, and numerous other details.  The questions and answers are highly detailed and this post does not provide a complete review of them. 

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IRS issues updated 402(f) rollover distribution notices

The IRS has issued new model notices for recipients of rollover distributions from qualified retirement plans.  The updated notices reflect changes from the 2017 tax reform act, as wells as regulatory changes enacted since previous versions of the notices were published.

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