Individuals who are 50 years old or older may make additional contributions to 401(k) plans, referred to as catch-up contributions.  Secure 2.0 included a requirement that starting January 1, 2024, only participants who earn $145,000 or less (as adjusted) in the previous year may make pre-tax contributions. Individuals who earned more than $145,000 in the previous year may only make Roth catch-up contributions. On August 25, 2023, the Internal Revenue Service announced a 2-year transition period whereby plans will not be required to comply with the requirement that individuals earning mor ..read more

McNees’ Benefits Group will be issuing a “Did you know?” series throughout the year providing short compliance reminders. Did you know that beginning in January 2024, participants may only make Roth catch-up contributions to their 401(k) (and may not make pre-tax catch-up contributions) if they earned more than $145,000 (as adjusted by the Secretary of the Treasury) in the previous year? If the participant made less than $145,000 in the previous year, the participant may continue to make pre-tax catch-up contributions. For more information regarding compliance for your benefit plans, cont ..read more

McNees’ Benefits Group will be issuing a “Did you know?” series throughout the year providing short compliance reminders. Did you know that if you maintain a cafeteria plan, you have to complete annual non-discrimination testing? For more information regarding compliance for your benefit plans, contact any member of the McNees Labor and Employment Group ..read more

McNees’ Benefits Group will be issuing a “Did you know?” series throughout the year providing short compliance reminders. Did you know that qualified retirement plans may now allow a participant with a terminal illness to receive distributions from their retirement accounts without incurring the usual 10% penalty? The employer will need to amend the retirement plan to allow for such distributions. For more information regarding compliance for your benefit plans, contact any member of the McNees Labor and Employment Group ..read more

McNees’ Benefits Group will be issuing a “Did you know?” series throughout the year providing short compliance reminders. Did you know that group health plans are required to submit a gag clause prohibition compliance attestation to the Departments of Labor, Health and Human Services, and Treasury prior to December 31, 2023?  The annual attestation provides that the group health plan has not, since December 27, 2020, entered into and will not enter into a contract with a health care provider, third-party administrator, or other service provider offering access to a network of providers th ..read more

McNees’ Benefits Group will be issuing a “Did you know?” series throughout the year providing short compliance reminders. Did you know that an employer must issue an updated summary plan description (“SPD”) at least every five (5) years that contains all recent amendments? If there were no amendments to the SPD, then the SPD must be reissued every 10 years. For more information regarding compliance for your benefit plans, contact any member of the McNees Labor and Employment Group ..read more

McNees’ Benefits Group will be issuing a “Did you know?” series throughout the year providing short compliance reminders.  This is the first in the series. Did you know that if you withhold premium payments pre-tax from employee wages, you must have a cafeteria plan (also called 125 plan)?  If you do not have a cafeteria plan, then your employees owe taxes on the premiums withheld. For more information regarding cafeteria plans, contact any member of the McNees Labor and Employment Group ..read more

The Consolidated Appropriations Act of 2023 (“Act”) was passed by Congress in late December 2022 and signed by President Biden on December 29, 2022.  The Act, a $1.7 trillion dollar spending bill, contains provisions which modify the laws applicable to welfare benefit plans and retirement benefit plans.  Below is a high-level list of the provisions of the Act which are effective in 2023 and which may affect your plan: Welfare Benefit Plans High Deductible Health Plans can continue to waive the deductible for any telehealth services for plan years beginning before January 1, 2025. R ..read more

Maryland and Delaware recently joined the growing list of states that have enacted legislation requiring employers to offer paid family and medical leave.  Both states are still working on implementing regulations for the new laws; but, in the meantime, below is a brief summary of what you need to know about these laws and when they will take effect. Maryland Maryland’s new law will cover all employers with at least one employee in the state.  To be eligible for the leave, employees must have worked at least 680 hours over the 12-month period before the leave begins.  Employees ..read more

A recently published FAQ prepared by the Departments of Labor, Health and Human Services and Treasury answers frequently asked questions regarding vaccine premium differentials and HIPAA nondiscrimination rules, as well as the cost shares for vaccine boosters. Vaccine Premium Differentials ERISA and other regulations prohibit plans “from discriminating against participants, beneficiaries, and enrollees in eligibility, premiums, or contributions based on a health factor.”  Health plans are allowed an exception to this prohibition and may provide discounts, subject to limitations, to partic ..read more