Lauren Schuster

On April 16, 2024, the IRS released Notice 2024-35, extending the previously provided temporary relief from certain required minimum distribution...

Pursuant to provisions of the Affordable Care Act (ACA), most employer-sponsored health plans must cover 100% of the cost of preventive care services...

In recent guidance published by the Internal Revenue Service (IRS) on April 16, 2024, the IRS has taken the position that work-life referral plans provided by employers are excludable from employee compensation and not subject to payroll taxes. In FAQs published in Fact Sheet FS-2024-13, IR 2024-110, the IRS indicated that work-life referral (WLR) services will be considered de minimis fringe benefits because such services are used infrequently by employees and only when an employee faces one of the specific challenges the program is designed to address.

In April 2024, the U.S. Department of Labor (DOL) released final rules that are intended to protect retirement savings from disloyal or dishonest recommendations from investment advisors. The new rules treat an investment advisor as a fiduciary if the investment advisor is paid (directly or indirectly) for investment advice and they reasonably appear to be making individualized investment recommendations to a retirement investor. For example, many investment firms that educate retirement plan participants and beneficiaries on rolling over 401(k) account balances to an investment firm’s IRAs or annuities may be considered fiduciaries under the new rules. If an employer engages an investment advisor for an ERISA retirement plan, the employer will need to understand and monitor when the investment advisor should be acting as a fiduciary.

The Tabor City North Carolina Yam Festival kicks off this Friday. The town was once known as the yam capitol of the world, or should we say sweet potato capitol of the world?

As we approach the end of 2024, companies that existed prior to January 1, 2024, should already have on their radar the Corporate Transparency Act (“CTA”) beneficial ownership (“BOI”) reporting requirements or determine whether they meet an applicable exemption. The CTA, effective January 1, 2024, requires certain entities to file reports with the Financial Crimes Enforcement Network (“FinCEN”) of the Department of Treasury. Companies in existence prior to January 1, 2024, only have until December 31, 2024, to make their registration. Companies established after January 1, 2024, have 90 days after they are created to register. Going forward, entities formed on or after January 1, 2025, will only have 30 days from the date of formation to meet the required reporting requirements.

In recent months, several changes to healthcare rules regulations focusing on reproductive health care have been introduced. These include (1) privacy protections for reproductive health data under HIPAA, (2) expanding access to OTC contraceptives without cost-sharing, and (3) broader access to certain preventive services without deductibles. Given the likelihood that the new administration may stop or reverse some of these changes focusing on reproductive health care, health plan sponsors should closely monitor potential developments. We will continue to provide updates as the situation evolves.

On September 23, 2024, the Departments of Labor, Treasury, and Health and Human Services (together, “Departments”) issued a final rule (“Final Rule”) under the Mental Health Parity and Addiction Equity Act (“MHPAEA”). The Final Rule applies to insurers and to insured and self-funded group health plan sponsors.

Forfeiture funds in 401(k) plans represent a unique asset pool with specific regulatory requirements and practical applications. Forfeiture funds arise when participants terminate employment with the company before becoming fully vested in employer contributions allocated to them. Unlike participant contributions which immediately vest, these unvested benefits—the forfeiture—revert back to the plan. Properly managing forfeiture funds is crucial for plan sponsors; as fiduciaries, plan sponsors should ensure that forfeiture funds are used in a manner that complies with both federal regulations and the plan document.

Updated 401(k) and 403(b) Requirements for Long-Term Part-Time Employees. Starting in 2025, 401(k) and 403(b) retirement plans must offer the plan’s salary deferral feature to long-term part-time employees who are at least age 21 and have two consecutive years of service where they completed at least 500 hours of service. Originally, in 2021, this requirement applied only to 401(k) plans, but did not apply to collectively bargained plans or 403(b) plans and required three consecutive years of 500 (or more) hours of service. In 2025, the requirement is being extended to 403(b) plans with a salary deferral feature and the category of long-term part-time employee has now expanded by reducing the number of years of service.