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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. 

Entries in 401(k) Plans (20)


Who is a Highly Compensated Employee?

Identifying an employer’s highly compensated employees is crucial to the administration of qualified retirement plans, as well as 403(b) plans that provide employer contributions. This post provides an overview of the rules for determining who is a highly compensated employee.

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Recap of Change to Retirement Plan Rollover Rules for Plan Loan Offsets

The Tax Cuts and Jobs Act of 2017 (“2017 Tax Act”) includes a provision that changed the rollover rules for certain plan loan offset distributions and that may not be well known to retirement plan sponsors and participants.

Money purchase, profit sharing, 401(k) and 403(b) plans may make loans available to plan participants.  If a participant with an outstanding loan terminates employment and fails to repay the loan in accordance with its terms (including repayment by the end of any cure period established under the plan), the plan will reduce (offset) the terminated participant’s vested account balance by the principal and accrued interest outstanding on the loan.  This means the entire outstanding loan balance will be treated as a distribution from the plan paid directly to the terminated participant, and the taxable portion of the distribution will be subject to income tax (and the 10% penalty tax for early distributions, if applicable).

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Revenue Procedure 2019-19: Enhancements to EPCRS are Great News for Plan Sponsors

Newly published Revenue Procedure 2019-19 modifies and supersedes prior IRS guidance regarding the Employee Plans Compliance Resolution System (EPCRS) to allow plan sponsors to self-correct an expanded number of problems that may affect retirement plan operations or documents. The new guidance, which took effect April 19, 2019, provides a significant opportunity for plan sponsors to correct loan defaults and other minor operational failures without going through the expensive and often time consuming voluntary correction program (VCP) procedure.

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December 2018 Client Advisory

This Client Advisory, originally distributed in December 2018, highlights important developments in the law governing employee benefit plans and executive compensation over the past year.  It offers insight into what these developments mean for employers and plan sponsors and previews developments we expect to see in 2019. 

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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:

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