The IRS announced tax relief for victims of severe storms and flooding in the Texas-Houston area. This relief generally extends from April 17, 2016 through September 1, 2016, and covers taxpayers who reside or have a business in Fayette, Grimes, Harris, or Parker Counties. The relief also includes the filing of Forms 5500 with the IRS. The DOL has mirrored the IRS’s Form 5500 filing relief. In addition, PBGC is waiving certain penalties and extending certain deadlines. PBGC’s announcement provides relief relating to PBGC deadlines to persons responsible for meeting a PBGC deadline who are located in the disaster area for which the IRS has provided relief. If the IRS adds additional areas in connection with those filing extensions, any person responsible for meeting a PBGC deadline that is located in those additional areas will also be entitled to that relief. The IRS announcement is available here. The DOL announcement is… Continue Reading
IRS Issues Final Rules Regarding Suspension of Benefits Under the Multiemployer Pension Reform Act of 2014
The Multiemployer Pension Reform Act of 2014 permits multiemployer defined benefit pension plans that are projected to have insufficient funds to pay full plan benefits (referred to as plans in “critical and declining status”) to reduce the pension benefits payable to plan participants and beneficiaries if certain conditions and limitations are satisfied. The final rules also set forth the notice requirements and the process for seeking approval from the Treasury, PBGC, and the DOL to suspend benefits. These rules affect active, retired, and deferred vested participants and beneficiaries of affected multiemployer plans, as well as employers contributing to, and sponsors and administrators of, those plans. The final rules are effective as of April 28, 2016. The final rules are available here.
The IRS announced the 2017 inflation adjusted amounts for a high deductible health plan (“HDHP”) and health savings account (“HSA”) contribution limits in Revenue Procedure 2016-28, as follows: Minimum HDHP deductibles – $1,300 self-only; $2,600 family (no changes from 2016) HDHP out-of-pocket maximum limits – $6,550 self-only; $13,100 family (no changes from 2016) Annual HSA contribution limits – $3,400 self-only; $6,750 family ($50 increase for self-only; no change to family contribution limit from 2016) Revenue Procedure 2016-28 is available here.