Tag Archives: Taxation of Benefits

IRS Issues Clarification on Phased Retirement Payments

Typically, when a participant receives annuity payments from a defined benefit pension plan where he or she has a basis in the benefit (what Code Section 72 calls an “investment in the contract”), a portion of the payment is treated […]

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New IRS Memo Confirms Tax Treatment of Wellness Programs & Incentives

In a recently released IRS Chief Counsel Memo, the IRS confirmed that wellness incentives are generally taxable. The memo also, indirectly, confirmed the tax treatment of wellness programs more generally. As to the incentives, the IRS held that a cash […]

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The President’s Benefits Budget Proposals

A few weeks ago, the President released his proposed budget for the fiscal year 2017. As usual, it is dense. However, the President has suggested some changes to employee benefits that are worth noting. While they are unlikely to get […]

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Congress Engages in Some Holiday Spending on Benefits

Congress’s recent $1.8 trillion holiday shopping spree (aka The Consolidated Appropriations Act, 2016, which became law on December 18, 2015) included a few employee benefit packages. We recently unwrapped the packages. Here is what we found. 1.   Cadillac Tax […]

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After Obergefell, Is it “Get Married Or Else”?

As has now been widely reported, the Supreme Court ruled on June 26 (the second anniversary of the Windsor decision) that same-sex couples have a right to marry in any part of the United States. Despite being hailed as a […]

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Florida Stamp Tax

If your 401(k) plan maintains a participant loan program, you may discover that you have compliance concerns thanks to a relatively obscure Florida tax statue.  Under its revenue laws, Florida imposes a document tax on loan transactions that are made, […]

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83(b) Elections

Our sister blog, Start-Up Bryan Cave, recently posted about when and why to use the an 83(b) election.  The post has a good discussion of the advantages and disadvantages. One item it does not mention is the company’s deduction, which […]

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Modifying the Affordable Care Act to Make It Better

One of my law school professors and now good friends, Professor Burt Brody, has been contemplating beneficial changes to the Affordable Care Act.  I think he is on to something beneficial. Professor Brody has written an op-ed piece published in […]

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401(k) Elbowing Out HELOCs As Rainy Day Fund

As has been widely reported, Americans have increasingly turned to their 401(k)s to fund emergency expenses.  Of course, withdrawals before 59 ½ are subject to an additional 10% tax.  As this Bloomberg story notes, the IRS collected $5.7 billion from […]

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Retirement Plans Post-DOMA: Is IRS Guidance on Amendments Really Imminent?

Update (4/11): See our post here on the recently released guidance. The employee benefits community continues to wait with baited breath on IRS guidance regarding the amendments necessary to qualified retirement plans in the wake of last Summer’s Windsor decision […]

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