If you’ve been wondering why I haven’t posted about the effects of COVID-19 on employee benefits it’s because I’ve been practicing social network distancing. Just kidding. While we await Congress to pass and the President to sign the 2 trillion dollar stimulus package known as the CARES Act, I thought I would point out how
401(k) Plans
Hardship Proposed Regulations Require Thought About Plan Design
By Scott E. Galbreath, J.D., LL.M (Tax) on
Posted in 401(k) Plans, 403(b) Plans

Last November, the IRS issued proposed regulations incorporating several legislative changes regarding the ability of a 401(k) or 403(b) plan to make distributions to participants to relieve a hardship caused by an immediate and heavy financial…
IRS Approves New 401(k) Plan Design to Substitute Student Loan Repayments for Elective Contributions
By Scott E. Galbreath, J.D., LL.M (Tax) on
Posted in 401(k) Plans
In a new private letter ruling (PLR 201833012) released August 17, 2018, the IRS approved amendments to a 401(k) plan that effectively permit the employer to treat an employee’s student loan repayments similar to elective contributions under the plan by making a nonelective employer contribution equal to the matching contribution the employer would have made,…