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Are the Educational and Adoption Assistance Tax Exclusions Going to Expire?

Regardless of how the so-called fiscal cliff is “resolved” – and whether this occurs before the end of 2012 – the expiration of educational assistance and adoption assistance tax provisions at the end of this year is already causing headaches for employers who provide (or hope to provide) their employees with these tax-advantaged benefits.  However, … Continue Reading

Additional Relief for Victims of Hurricane Sandy

The IRS and Department of Labor recently announced additional relief for victims of Hurricane Sandy. Loans and Hardship Distributions from Defined Contribution Plans.  In Announcement 2012-44, the IRS relaxed the rules governing loans and hardship distributions from 401(k), 403(b) and state and local government 457(b) defined contribution plans.  There are several components to the relief: … Continue Reading

IRS Extends Deadline for Adopting Funding-Related Amendments

On the day before Thanksgiving, the IRS announced that it is extending the deadline for adopting plan amendments for funding-related benefit restrictions under defined benefit plans.  For most calendar year plans, the new deadline is December 31, 2013.  (Our list of upcoming benefits and compensation related deadlines is available here.) Although the amendment deadline has … Continue Reading

PBGC Changes Section 4062(e) Enforcement Policy, But Not Expansive Interpretation of Section 4062(e)

The Pension Benefit Guaranty Corporation (“PBGC”) recently announced a change to its enforcement policy under ERISA § 4062(e) and issued answers to frequently asked questions on the subject.  The new enforcement policy would impose § 4062(e) liability only on large employers who are not “financially sound.”  As discussed below, however, the new policy does not provide … Continue Reading