IRS Announces 2020 Pension Plan Limitations

In Employee Benefits by Coolidge Wall

The IRS has announced cost-of-living adjustments for 2020 retirement plan contributions. For 2020, the amounts that individuals will be able to contribute to 401(k), 403(b), and 457(b) retirement plans will increase $500 to $19,500. The catch-up contribution limit for employees age 50 and over will also increase $500 to $6,500.  This chart summarizes the limitations for 2020 (amounts that changed for 2020 are shown in bold): Contribution Limits    2019    2020 Elective Deferral Limit – 401(k), 403(b) and 457(b) Plans                   $19,000         $19,500         …

IRS Announces 2019 Pension Plan Limitations

In Employee Benefits by Coolidge Wall

On November 1, 2018, the IRS announced cost-of-living adjustments for 2019 retirement plan contributions. For 2019, the amounts that individuals will be able to contribute to retirement plans will increase from $18,500 to $19,000. However, the catch-up contribution limit for employees age 50 and over will remain unchanged at $6,000. This chart summarizes the limitations for 2019: Contribution Limits 2019 2018 Elective Deferral Limit – 401(k), 403(b) and 457(b) Plans $19,000 $18,500 Catch-Up Contribution Limit $6,000 $6,000 Elective Deferral Limit – SIMPLE Retirement Plan $13,000 $12,500 Catch-Up Contribution Limit – SIMPLE Retirement Plan $3,000 $3,000 Contribution Limit – IRA $6,000 …

IRS Announces 2018 Pension Plan Limitations

In Uncategorized by Coolidge Wall

On October 19, 2017 the IRS announced cost-of-living adjustments for 2018 retirement plan contributions. For 2018, the amounts that individuals will be able to contribute to retirement plans will increase from $18,000 to $18,500. However, the catch-up contribution limit for employees age 50 and over will remain unchanged at $6,000. This chart summarizes the limitations for 2018: Contribution Limits   2018   2017 Elective Deferral Limit – 401(k), 403(b) and 457(b) Plans $18,500 $18,000 Catch-Up Contribution Limit $  6,000 $  6,000 Elective Deferral Limit – SIMPLE Retirement Plan $12,500 $12,500 Catch-Up Contribution Limit – SIMPLE Retirement Plan $  3,000 $  …

Public Service Employees May Have Student Loans Forgiven Starting Later This Year

In Financial by Coolidge Wall

Beginning in October, individuals with student loans that meet certain requirements will be able to apply for forgiveness of the remaining balance of the loans under the Public Service Student Loan Forgiveness Program. While private loans are not eligible, four types of loans being repaid under certain income-based repayment plans are eligible for the program. Loan forgiveness under this program is not considered taxable income. Generally, a borrower will be eligible for forgiveness if the borrower has been employed full-time by a public service organization while making 120 payments. The borrower must also be employed by a public service organization …

Did You Miss the Retirement Plan Restatement Deadline?

In Employee Benefits by Coolidge Wall

By April 30, 2016, profit sharing, 401(k), and money purchase pension plans using pre-approved IRS documents were required to restate their plans to comply with the Pension Protection Act of 2006. If an employer finds this year end that the company’s plan was not timely restated, the error can be corrected with the IRS. More importantly, if the error is found and corrected before April 30, 2017, the IRS fee to correct the error is reduced. Errors with retirement plans are corrected through the IRS voluntary correction program known as the Employee Plans Compliance Resolution System (“EPCRS”). An employer would …

IRS Extends Due Date for Furnishing Individual Reporting Statements under the Affordable Care Act

In Employee Benefits by Coolidge Wall

On November 18th, the Internal Revenue Service issued Notice 2016-70 which: Extends by 30 days the deadline for providing to employees the 2016 Forms 1095-B (Health Coverage) and 1095-C (Employer-Provided Health Insurance Offer and Coverage) from January 31, 2017 to March 2, 2017; and Extends certain good faith transition relief from penalties that apply to the 2016 ACA information reporting requirements. Form 1095-B must be furnished to individuals by insurers, employers with self-insured health plans, and certain other providers of minimum essential coverage. Form 1095-C must be provided by applicable large employers (those with 50 or more full-time employees, including …

So You Want to Start a Charity

In Tax by Coolidge Wall

Everyday people want to know if they can to turn an activity they enjoy into a tax-exempt charity. Probably the most common reason people want to create a tax-exempt charity is to receive tax deductible donations. To receive tax deductible donations, the organization would have to be exempt under Internal Revenue Code Section 501(c)(3). For an organization to be exempt under Section 501(c)(3), the organization has to meet certain basic requirements. First, the organization has to be organized exclusively for a permitted purpose such as a charitable, religious or educational purpose. Being properly organized means the documentation filed, for our …

Can Employee Hours Be Reduced to Avoid Providing Health Insurance?

In Healthcare Reform by Coolidge Wall

Once the Affordable Care Act was passed, employers began reviewing their options about providing health insurance coverage to employees. One option continually referenced in the news was how employers were considering reducing employee hours to avoid providing health insurance coverage. One employer is now the subject of a class action law suit that claims the employer violated ERISA when it reduced employee hours to avoid providing health insurance coverage. Marin v. Dave & Buster’s, Inc., S.D.N.Y. No. 1:15-cv-036081. Marin alleges on behalf of the affected employees that Dave & Buster’s reduced their hours as part of a company-wide plan to …

New Law Requires 501(c)(4) Organizations to File with the IRS

In Tax by Coolidge Wall

On December 18, 2015, President Obama signed The Protecting Americans from Tax Hikes Act (the “Act”). The Act contains a requirement that 501(c)(4) social welfare organizations file a notice with the IRS. Prior to the Act, 501(c)(4) organizations could, but were not required to, submit a Form 1024 requesting tax-exempt status from the IRS. The new notice requirement applies to 501(c)(4) organizations that are created after December 18, 2015 and to certain organizations existing on that date. New organizations are required to file the notice with the IRS no later than 60 days after the organization is created. For other …

The Importance of “Wrap” Documents – A Key to ERISA Compliance for Group Health and Welfare Plans

In Employee Benefits by Coolidge Wall

To ensure compliance with ERISA’s documentation and disclosure rules for health and welfare plans (medical, dental, vision, group term life insurance, and disability insurance plans), the plans must be set forth in written plan documents that meet specified content requirements. Although employers receive insurance policies or certificates of coverage from insurers or third party administrators, these documents rarely specify the named fiduciary, the procedures for amending the plan or the allocation of responsibilities for the operation and administration of the plan among the employer, the insurer, and the third party administrator. ERISA also requires employers to provide to each employee …