The Internal Revenue Service (IRS) issued helpful guidance to plan sponsors of safe harbor 401(k) plans that are considering reducing or suspending safe harbor employer matching contributions or safe harbor nonelective contributions as a result of the COVID-19 pandemic. As explained below, IRS Notice 2020-52 provides temporary relief from certain
COVID-19
Helpful FAQ Guidance Issued to Assist Group Health Plans With Implementing COVID-19 Coverage Requirements of the FFCRA and CARES Act
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Posted in COVID-19, Health and Welfare Plans
The Departments of Labor, Health and Human Services, and the Treasury jointly released additional frequently asked questions (“FAQs”) regarding implementation of the health coverage provisions of the Families First Coronavirus Response Act (“FFCRA”); the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), and other health coverage issues related to…
IRS Issues Guidance on Waiver of 2020 Required Minimum Distribution
By E. Phillip Bush on
Posted in COVID-19
The Internal Revenue Service (“IRS”) issued Notice 2020-51 which provides much needed guidance concerning the waiver of 2020 required minimum distributions (“RMDs”) under the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). The Notice also includes transition relief for plan administrators regarding the change to the required beginning date…
Locke Lord QuickStudy: New ERISA Safe Harbor Expands Opportunities for Electronic Disclosure of Retirement Plan Information
By E. Phillip Bush on
Posted in COVID-19
On May 21, 2020, the U.S. Department of Labor (“DOL”) announced a new safe harbor rule that will allow plan sponsors, by default, to post retirement plan disclosures online or deliver them to participants by email in satisfaction of their duties under the Employee Retirement Income Security Act of 1974,…
Retirement Plan Loans and COVID-19: U.S. Department of Labor Fiduciary Relief and IRS Notice Allowing Short-Term Delay of Plan Loan Payments
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As we discussed in our recent article, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) temporarily increases the permissible loan amount for loans taken by qualified individuals between March 27, 2020 and September 22, 2020 and suspends loan repayments due beginning on March 27, 2020 through December 31,…
IRS Releases New FAQ Guidance on Coronavirus-Related Distributions from Eligible Retirement Plans
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The IRS addressed Frequently Asked Questions (“FAQs”) this week on the new coronavirus-related distribution (“CRD”) available from eligible retirement plans added by the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”).
As background, the CARES Act allows certain retirement plans to provide a special in-service distribution option in…
New U.S. Department of Labor Guidance Provides COVID-19 Relief from ERISA Contribution Timing Rule and an Opportunity to Bolster Future Compliance
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This article provides practical guidance regarding how plan sponsors and fiduciaries should address delays in remitting participant salary deferral contributions and plan loan payments to their defined contribution plans resulting from the coronavirus (also known as COVID-19).
EBSA Disaster Relief Notice 2020-01
In EBSA Disaster Relief Notice 2020-01, the U.S.…
ERISA COVID-19 Disaster Relief Includes Fiduciary Relief for Notices to Plan Participants and Beneficiaries
By E. Phillip Bush on
Posted in COVID-19
In addition to the relief detailed in our recent article on EBSA Disaster Relief Notice 2020-01, the U.S. Department of Labor (DOL) in Notice 2020-01 extended a number deadlines for furnishing required notices or disclosures to plan participants, beneficiaries, and other persons. This will provide additional time for plans…
Extension of Certain Timeframes for Employee Benefit Plans, Participants, and Beneficiaries Affected by the COVID-19 Outbreak
By E. Phillip Bush on
Posted in COVID-19
On April 28, 2020 the Employee Benefits Security Administration, U.S. Department of Labor, Internal Revenue Service, and Treasury Department published joint guidance extending certain important deadlines that are otherwise applicable to employee benefit plans. This relief was granted in an effort to preserve and protect the benefits of participants and…
Form 5500 Filing Relief for Certain Employee Benefit Plans
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In response to the COVID-19 pandemic, the IRS has automatically extended the deadline for certain retirement and welfare plans to file Form 5500. IRS Notice 2020-23 provides that tax returns, including Forms 5500, that are required to be filed on or after April 1, 2020 and before July 14, 2020…