Taxpayer’s IRA rollover was timely
A rollover that took more than 60 days to complete due to a bookkeeping error was considered timely.
Employee Benefits
Final regs. loosen 401(k) hardship distribution requirements
The IRS issued final regulations governing hardship distributions from Sec. 401(k) plans, eliminating the requirements that participants obtain a loan from the plan if available and that suspend participants’ ability to make contributions to the plans for six months after taking a hardship distribution.
Proposed regs. govern maximum automobile values
The IRS issued proposed rules that provide maximum automobile values for the cents-per-mile and fleet-average valuation rules used to determine the amount to include in an employee’s gross income for personal use of an employer-provided vehicle.
IRS issues CPEO final regulations
The tax consequences under Sec. 3511 are spelled out for employee leasing and similar arrangements.
Guidance adds preventive care items to high-deductible health plans
The IRS added 14 types of preventive care items that qualify to be provided under a high-deductible health plan to treat chronic medical conditions.
Final HRA rules permit integration with individual health insurance
The IRS issued final regulations on health reimbursement arrangements, which may be offered to individuals as individual coverage HRAs and integrated into health insurance plans.
2020 limits on HSA contributions are issued
The IRS issued its annual notice of the inflation-adjusted limits on contributions to health savings accounts. All of the limits increased from 2019 to 2020.
IRS clarifies new qualified equity grants
Income recognition from exercise or settlement of employer stock options and RSUs may be deferred for up to five years.
IRS explains disallowance of qualified transportation fringe benefits for parking
The IRS issued guidance outlining how to determine the amount of parking expense that is nondeductible under Sec. 274(a)(4) when employers provide parking for their employees.
Initial guidance issued on Sec. 83(i) deferral election for private company equity grants
The IRS issued initial guidance on the application of Sec. 83(i), which allows certain employees to defer recognition of income attributable to the receipt or vesting of qualified stock.
New tax credit for paid family and medical leave
Employers that offer this benefit to qualified employees can receive a credit worth up to 25% of the cost.
Inflation adjustments issued for qualified retirement plans
The IRS released updated figures for retirement plan contribution limits for 2019.
Health reimbursement arrangement rules are issued in proposed form
The Treasury, Labor, and Health and Human Services departments proposed rules for health reimbursement arrangements, which can be used in coordination with individual health insurance if certain requirements are met.
Rules issued on paid family and medical leave credit
The IRS released guidance on the new Sec. 45S tax credit for employers that provide paid medical and family leave.
SEPs: Simple but not always optimal
Simplified employee pension (SEP) plans can be attractive in the short term but over the long term can be expensive, inefficient, and inflexible.
IRS issues HSA contribution limits for 2019
The IRS issued the inflation-adjusted contribution limits for 2019 for health savings accounts.
IRS gives taxpayers relief from erroneous HSA contributions
The IRS announced it will allow taxpayers to treat $6,900 as the 2018 limit for deductible contributions to HSAs for individuals with family coverage.
Aiding employees after a disaster via Sec. 139
This little-known provision allows payments to be excludable from employees’ income and deductible by the employer.
IRS announces 2018 pension contribution limits under tax reform act
The IRS revealed that the recalculated 2018 pension contribution limits are unchanged from the numbers issued before the tax reform bill was enacted.
Defined benefit plans in the big picture
Comprehensive financial planning can uncover when the advantages of a defined benefit plan for a small business might outweigh those of a defined contribution plan.
