May 26, 2020

DOL Releases Final Regulations on Default Electronic Notices and Disclosures for 401(k) Plans

On May 21, 2020, the U.S. Department of Labor (“DOL”) released Final Regulations (along with a related DOL fact sheet) permitting administrators of retirement plans (including 401(k) plans) to use electronic methods as the default means of disseminating most required notices and disclosures required under Title I of ERISA. SPECIAL COVID-19 ENFORCEMENT POLICY: Although the… Continue Reading

May 15, 2020

IRS Provides Relief to Cafeteria Plans in Response to COVID-19

The IRS recently issued new guidance for cafeteria plans and high deductible health plans (HDHPs) pursuant to Notice 2020-29, which is specifically related to circumstances created by the COVID-19 pandemic. It provides for: Expanded opportunities to make mid-year cafeteria plan election changes during 2020. Modification of the grace period rules for cafeteria plans (including health… Continue Reading

May 14, 2020

IRS Increases Maximum FSA Carryover Limit, Clarifies Timing for Reimbursement of Premiums

The IRS recently issued new guidance for section 125 cafeteria plans pursuant to Notice 2020-33.  This guidance: Increases the allowable carryover amount for health FSAs that have a carryover feature. Closes a gap in previous guidance regarding the use of pretax contributions taken in one plan year to pay premiums for coverage in the following… Continue Reading

May 11, 2020

DOL Updates COBRA Model Notices, Adds Information on Interaction with Medicare

On May 1, 2020, the Department of Labor (DOL)’s Employee Benefits Security Administration (EBSA) revised its model COBRA notices, and accompanying FAQs, to provide information on the interactions between Medicare and the Consolidated Omnibus Budget Reconciliation Act (COBRA). In the news release regarding these updates, the DOL states the updated notices will help individuals affected… Continue Reading

May 7, 2020

IRS Issues Q&As Under CARES Act on COVID-19 Related 401(k) Plan Distributions and Loans

On May 4, 2020, the Internal Revenue Service (“IRS”) issued Q&As under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, providing guidance to 401(k) plan administrators and participants regarding coronavirus-related distributions and enhanced participant loans for covered employees who are affected by the pandemic. The Q&As generally expand upon and clarify the rules set… Continue Reading

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