Today’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.”
Overview of Proposed Regulations under Code Section 162(m)
Series Installment: “publicly held corporation”
As 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”).
U.S. Supreme Court’s 2019-2020 Term Includes Three ERISA Cases
It has been several years since the US Supreme Court issued a decision in a case involving the Employee Retirement Income Security Act of 1974 (ERISA). In the upcoming term, the U.S. Supreme Court has agreed to review three ERISA cases. Below is a summary of the ERISA cases that
Holiday Stocking Stuffer: IRS Issues Proposed Regulations Under Code Section 162(m)
On 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
IRS Reopens Determination Letter Program for Certain Individually Designed Plans
In 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.
The IRS
First Circuit Holds Affiliated Investment Funds Not Liable For Multiemployer Withdrawal Liability
Private equity fund sponsors can breathe a sigh of relief last week as the First Circuit Court of Appeals, reversing a district court finding, held that two separate private equity funds sharing a general partner (Sun Capital Partners III and Sun Capital Partners IV) were not jointly and severally liable
IRS Issues Final Regulations on 401(k) Hardship Distributions
The 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.
The final regulations are substantially similar to
IRS Letters 226-J for 2017 are in the Mail
The 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
Time to Restate Your 403B Plan
The 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
Locke Lord QuickStudy: IRS Announces 2020 Retirement Plan Limitations – Most Limits are Increased
The Internal Revenue Service announced the 2020 cost-of-living adjustments to the dollar limitations for qualified retirement plans and other benefits, and the Social Security Administration announced its own cost-of-living adjustments for 2020. The elective deferral contribution limit for 401(k), 403(b) and 457(b) plans will increase to