Cafeteria plans (125, flexible spending) (BenefitsLink.com)Headlines re Cafeteria plans (125, flexible spending), gathered by BenefitsLink.comSec. 125 All-Or-Nothing Penalties Criticized- (Found June 29, 2008 ) Excerpt: "The all-or-nothing penalties in the proposed Sec. 125 regulations are overly burdensome, according to several speakers at a November 15 IRS hearing on the regulations. 'Any slip up will cause a plan to be disqualified,' John Hickman, partner at Employers Council of Flexible Compensation said . . . ." (CCH Benefits)http://www.hr.cch.com/news/benefits/112607.asp Text of Aon's 2007 Year-End Checkup for Benefit Plans (PDF)- (Found June 29, 2008 ) 15 pages. Excerpt: "This Alert will help identify general year-end administrative and planning issues that could lead to compliance or employee relations problems if not addressed before, or early in, 2008. In addition, we have highlighted recent legislative or regulatory developments that may require plan design or documentation changes, particularly in response to the Pension Protection Act of 2006 (PPA), final Internal Revenue Code (IRC) 409A regulations, and the re-proposed IRC 125...http://benefitslink.com/articles/guests/aon_2007_year_end_checkup.pdf Overview of Buck's Submitted Comments on Proposed Regs Under Section 125 of the Internal Revenue Code (PDF)- (Found June 29, 2008 ) 2 pages. Excerpt: "Given the complexity of the nondiscrimination provisions of the new proposed regulations, we urged the IRS to consider the following actions Define the term 'highly compensated individual' in the same way as for pension, dependent care and adoption assistance purposes. Provide clear examples regarding performance of the eligibility test and the logic behind the result. Provide further guidance on the valuation of qualified benefits. The value should be the total...http://www.buckconsultants.com/buckconsultants/Portals/0/Documents/PUBLICATIONS/Newsletter... Council Comments to IRS on Proposed Section 125 Cafeteria Plan Regulations (PDF)- (Found June 29, 2008 ) 14 pages. Excerpt: "Although many of the rules in the proposed cafeteria plan regulations are helpful clarifications, employers and service providers are concerned about several aspects of the rules, including the IRS' position that any mistake in the plan document, or any mistake in administering the plan, will result in adverse tax consequences that impact all cafeteria plan participants." (American Benefits Council)http://www.americanbenefitscouncil.org/documents/irs_sec125_cmts_11-05-07.pdf From the Employers Council on Flexible Compensation: Text of Extensive Comments on Proposed Cafeteria Plan Regs (PDF)- (Found June 29, 2008 ) 37 pages; filed November 5, 2007. Very well-written: clear, precise; includes explanation of issues and a detailed suggested revision for each issue. (Employers Council on Flexible Compensation)http://benefitslink.com/articles/guests/2007_11_05_ecfc_comments.pdf Items of Interest for Health Plans in the New IRS Cafeteria Plan Proposed Regulations (PDF)- (Found June 29, 2008 ) 7 pages. Excerpt: "The paper presents highlights from the rules that are likely to be of interest to health plans, particularly those that provide cafeteria plan administrative services." (Miller & Chevalier Chartered)http://www.millerchevalier.com/files/Publication/dd8c6c96-007d-4f7c-9129-17697b055295/Pres... Guidance Overview IRS Issues 2008 Version of Taxable Fringe Benefit Guide- (Found June 29, 2008 ) Excerpt: "This publication offers helpful insight into the IRS's positions regarding the taxation, withholding, and reporting requirements for certain employee fringe benefits. However, employers and administrators looking for an IRS publication on the tax treatment of a broader variety of fringe benefits (including cafeteria plans, adoption assistance, and HSAs) may wish to consult IRS Publication 15-B . . . ." (Employee Benefits Institute of America (EBIA))http://www.ebia.com/weeklyguest/19290/20080229480191b668ff5aeb0294397b3c11cd81/BNL080207 Guidance Overview DOL Opines on ERISA Preemption After the Pension Protection Act (PDF)- (Found June 29, 2008 ) 2 pages. Excerpt: "In Advisory Opinion 2008-02A . . ., the Department of Labor issued its first advisory opinion addressing the scope of ERISA's preemption provisions since the enactment of the Pension Protection Act in 2006." (Sutherland Asbill & Brennan LLP)http://www.sablaw.com/files/tbl_s10News/FileUpload44/18105/LegalAlertEmpBenDOLOpinesonERIS... Guidance Overview ERISA Preempts State Law Requiring Employers to Obtain Employees' Written Consent Before Withholding for Health Plan Benefits- (Found June 29, 2008 ) Excerpt: "EBIA Comment: This isn't the first time the DOL has issued an advisory opinion finding a state wage withholding law to be preempted by ERISA. But it is important to remember that an advisory opinion may be relied upon only by the parties identified in the request and that state wage withholding laws come in various forms." (Employee Benefits Institute of America)http://www.ebia.com/weeklyguest/19306/20080314f1b531439a8d2ae2e2901741ca3c9918/BNL080221 New Legislation Enhances 401(k) Benefits for Military Personnel, Allows Qualified Reservist Distributions from Health FSAs, and Extends MHPA- (Found June 29, 2008 ) Excerpt: "For some 401(k) plans, the Act's rule requiring enhanced survivor benefits may trigger accelerated vesting of matching and profit-sharing contributions for short-service participants. While not previously mandatory, treating differential military pay as plan compensation was already available for 401(k) plans in the final regulations under Code Section 415. (And while not specifically addressed, the Act may also facilitate pre-tax cafeteria plan salary reductions from...http://www.ebia.com/weeklyguest/19405/2008062050e5c2a7cd0334bdc95ad8089d938daf/BNL080529 |