ERISA & Employee Benefits

Retirement Plan Provisions of CARES Act

The third COVID-19 stimulus package has provisions regarding retirement plans, including expanded and penalty-free withdrawal rights, expanded loan rights, extended rights to repay loans and withdrawals, and a deferral of mandatory distributions. Coronavirus-Related Distributions The 10% early distribution penalty from retirement plans and IRAs under Section 72(t) of the Internal Revenue Code ...

Suspending or Reducing Safe Harbor Contributions in Defined Contribution Retirement Plans

In reaction to the current volatility in the economy due to covid-19, we have been receiving a large number of questions from retirement plan sponsors regarding whether it is permissible to suspend or reduce required safe-harbor contributions during the plan year.  Many companies have to reduce their expenses and improve cash flow.  In recent years many of these companies adopted safe harbor ...

SECURE Act Finally to Become Law

Congress is subject to one of the same vices as many Americans, namely, putting off important activities until the last moment. Earlier this year, the House of Representatives by a 417-3 vote, approved the Setting Every Community Up for Retirement Enhancement (SECURE) Act (or “Act”), but it never advanced in the Senate, in part because of reservations as to how it would be paid for. However, this ...

IRS Announces 2020 Retirement Plan Limitations

The Internal Revenue Service announced cost-of-living adjustments affecting certain dollar limitations for pension plans and other retirement-related limitations for 2020, as detailed in Notice 2019-59. Please click here for a chart that details the 2019 retirement plan dollar limitation cost-of-living adjustments.