Today, the IRS announced the 2023 contribution limits for 401(k), 403(b) and most 457 plans, which will be $22,500 in 2023, up from $20,500. The catch-up contribution limit, for employees age 50 and older, will increase to $7,500, up from $6,500. This is being touted as the biggest increase ever in the deferral limits for
On March 11, 2021, President Biden signed into law the American Rescue Plan of 2021 (“ARPA”). This Alert will summarize the significant tax and employee benefit provisions that are contained in ARPA.
Recovery Rebates to Individuals
ARPA enacted new Internal Revenue Code (the “Code”) Section 6428B, which provides individuals with a $1,400 recovery rebate credit
On Friday, August 28, the IRS released Notice 2020-65 (the “Notice”), which provides limited guidance to employers considering whether and how to implement the President’s August 8 Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster (the “Memorandum”). The Memorandum had directed the Secretary of the Treasury
Recent coronavirus-related guidance from the IRS (Notice 2020-29, issued on May 12) aims to give Code Section 125 cafeteria plan (“cafeteria plan”) participants some relief from irrevocable group health benefit and health and dependent care flexible spending account (“FSA”) elections made prior to the pandemic.
Under Notice 2020-29, an employer who offers group health benefits
On Friday, March 27, 2020, the President signed into law the Bipartisan Proposal for Coronavirus Aid, Relief, and Economic Security Act (also known as the “CARES Act”). The Cares Act is a massive 2.2 trillion dollar package that contains a number of provisions to assist the United States economy combat the impact of COVID-19. This
On March 18, 2020, President Trump signed into law H.R. 6201, the Families First Coronavirus Response Act (“FFCRA”). Among other things, the FFCRA requires employers with less than 500 employees to (i) provide up to 12 weeks of partially-paid leave to parent caregivers of minor children home as a result of COVID-19 related school
Now that the dust has begun to settle with respect to understanding the retirement plan and IRA changes in the federal law known as Setting Every Community Up for Retirement Enhancement Act of 2019 (the federal “SECURE Act”) that was signed into law in December of last year, tax planning is underway for the changes
On Wednesday, March 11, the Internal Revenue Service (IRS) in Notice 2020-15 published its first formal guidance addressing the developing public health emergency wrought by the novel coronavirus, COVID-19. The Notice provides that a high deductible health plan (HDHP) that covers testing for and treatment of COVID-19 before satisfaction of the plan’s minimum deductible will
On December 20, 2019, President Trump signed into law H.R. 1865, the Further Consolidated Appropriations Act, 2020 (now Pub. L. 116-94) (the “Appropriations Act”), which, among other things, contains the Setting Every Community Up for Retirement Enhancement (SECURE) Act (the “Act”). The Act is a significant piece of retirement legislation which seeks to expand access
On December 20, 2019, the President signed legislation repealing the excise tax, otherwise known as the “Cadillac tax,” on high cost health insurance plans. Both houses of Congress had adopted the legislation the day before, as part of a federal spending package.
The excise tax was a component of the Affordable Care Act (ACA). Without