Pension & Benefits NetNews – January 9, 2018

 

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Featured This Week

 

Employee Benefits Management News

 

  • 2018 standard mileage rates released
  • Court grants preliminary injunction against Trump’s religious and moral exemptions rules
  • Tax reform adds paid family leave credit, changes qualified transportation fringe benefits
  • IRS extends filing deadlines, penalty relief for Forms 1095-B and 1095-C

Pension Plan Guide News

 

  • PBGC final regs expand its missing participant program to DC, multiemployer DB, and other DB plans
  • DOL again delays application dates of certain class PTEs connected to fiduciary conflict of interest regs
  • PBGC amends regulation on allocation of assets in single-employer plans for 2018
  • IRS issues guidance on application of Code Sec. 409A to pre-2009 Code Sec. 457A deferrals

 

Employee Benefits Management News

 

2018 standard mileage rates released

The IRS has released the 2018 optional standard mileage rates that employees, self-employed individuals, and other taxpayers can use to compute deductible costs of operating automobiles (including vans, pickups and panel trucks) for business, medical, moving and charitable purposes. For more information, see ¶2111Y.

        (Read Intelliconnect) »

Court grants preliminary injunction against Trump’s religious and moral exemptions rules

The U.S. District Court for the Eastern District of Pennsylvania granted a preliminary injunction enjoining the government from enforcing two new interim Final rules, referred to as the Moral Exemption Rule (82 FR 47792) and the Religious Exemption Rule (82 FR 47838), modifying the Patient Protection and Affordable Care Act (ACA). For more information see ¶2111Z.

        (Read Intelliconnect) »

Tax reform adds paid family leave credit, changes qualified transportation fringe benefits

On December 22, 2017, President Trump signed into law The Tax Cuts and Jobs Act (P.L. 115-97). The new law includes several provisions that impact employee benefits plans, such as a new employer credit for paid family and medical leave. Also under the law, employers can no longer deduct expenses for qualified transportation fringe benefits, effective for tax years beginning after December 31, 2017. For more information, see ¶2112A.

        (Read Intelliconnect) »

IRS extends filing deadlines, penalty relief for Forms 1095-B and 1095-C

Insurers, self-insuring employers, other coverage providers, and applicable large employers now have until March 2, 2018, to provide individuals with Forms 1095-B, Health Coverage, or Forms 1095-C, Employer-Provided Health Insurance Offer and Coverage. This is a 30-day extension from the original due date of January 31. For more information, see ¶2112E.

        (Read Intelliconnect) »

Pension Plan Guide News

 

PBGC final regs expand its missing participant program to DC, multiemployer DB, and other DB plans

The Pension Benefit Guaranty Corporation (PBGC) has issued final regulations that expand its existing missing participants program to cover terminated 401(k) and most other defined contribution (DC) plans, multiemployer defined benefit (DB) plans, and certain DB plans that are not currently covered by the program. The PBGC has revised the existing program to establish programs for these plans that are similar to the existing missing participant program as well as to simplify procedures and remove unnecessary rules. The regulations are effective January 22, 2018, and are generally applicable for plans that terminate on or after January 1, 2018. The PBGC is also creating new forms for the various types of plans. For more information, see ¶155c.

        (Read Intelliconnect) »

DOL again delays application dates of certain class PTEs connected to fiduciary conflict of interest regs

The Department of Labor (DOL) is extending, from January 1, 2018 to July 1, 2019, the special transition period for the fiduciary conflict of interest rule’s Best Interest Contract Exemption (BICE) and the Principal Transactions Exemption, and the applicability of certain amendments to Prohibited Transaction Exemption 84-24 (PTEs). The extension amendments to these exemptions, which are effective January 1, 2018, affect participants and beneficiaries of plans, IRA owners and fiduciaries of these plans, and IRAs. For more information, see ¶16650h.

        (Read Intelliconnect) »

PBGC amends regulation on allocation of assets in single-employer plans for 2018

The PBGC regulation that governs the allocation of assets in single-employer plans and sets forth the methods for valuing benefits of terminating single-employer plans covered by ERISA has been amended. The regulation provides a new table that applies to any plan being terminated, either in a distress termination or an involuntary termination by the PBGC, with a valuation date falling in 2018, and is used to determine expected retirement ages for plan participants. This table is needed in order to compute the value of early retirement benefits and, thus, the total value of benefits under the plan. For more information, see ¶155a.

        (Read Intelliconnect) »

IRS issues guidance on application of Code Sec. 409A to pre-2009 Code Sec. 457A deferrals

The IRS has issued guidance providing that a nonqualified deferred compensation plan that is subject to the provisions of Code Sec. 409A will not fail to meet the requirements of Code Sec. 409A solely because payments of deferred amounts under the plan are accelerated to pay income taxes on the amounts includible in income pursuant to Sec. 801(d)(2) of the Tax Extenders and Alternative Minimum Tax Relief Act of 2008 (Div. C of P.L. 110-343, TEAMTRA). Code Sec. 457A, which was added to the Code by TEAMTRA, provides that any compensation that is deferred under a nonqualified entity’s nonqualified deferred compensation plan is includible in gross income when there is no substantial risk of forfeiture of the rights to the compensation, and generally applies to deferred amounts that are attributable to services performed after December 31, 2008. Nonqualified entities include a foreign corporation unless certain exceptions apply. However, if Code Sec. 457A does not apply to a deferred amount solely because the amount is attributable to services performed before 2009, Sec. 801(d)(2) of TEAMTRA provides that the amount is includible in gross income in the later of the last taxable year beginning before 2018 or the taxable year of vesting. For more information, see ¶17162x.

        (Read Intelliconnect) »

 

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