Tax Monitor

Involuntary Rollovers – Reg BI - What You Need To Know When Participants Have Balances Of $5,000 Or Less And Don't Take Out Their Monies From Retirement Plans

May 18, 2020

In June 2019, the U.S. Securities and Exchange Commission adopted Regulation Best Interest. Regulation BI (as it is known) imposes a new standard of conduct for broker-dealers when making recommendations of any securities transaction or investment strategy (including account recommendations) to a retail customer. Regulation BI also applies to associated persons of broker-dealers that are natural…

An Update on Taxes During COVID-19 - UPDATED

March 18, 2020

Breaking News: U.S. Treasury Secretary Steven Mnuchin announced on March 20, 2020 that the IRS is moving Tax Day to July 15, 2020 from April 15. Accordingly, taxpayers can now delay filing and paying taxes until July 15.  Taxpayers can also still delay paying first quarter 2020 estimates until July 15. For details click here.

The Treasury announced yesterday, March 17, 2020, invoking the…

WHAT YOU SHOULD KNOW ABOUT HOW THE SECURE ACT AFFECTS YOU AND YOUR BENEFICIARIES

January 23, 2020

The SECURE Act¹ makes sweeping changes to the required minimum distribution (“RMD”) rules for retirement accounts. Except for a few types of beneficiaries, it eliminates the most popular tax-advantaged planning feature - the ability of a retirement beneficiary to stretch RMDs over the beneficiary’s life expectancy. The elimination of the stretch fundamentally changes how beneficiaries are taxed…

TIPS FOR THE SMALL EMPLOYER: WHAT YOU NEED TO KNOW NOW ABOUT THE SECURE ACT AND YOUR RETIREMENT PLAN

January 23, 2020

The SECURE Act, signed into law on December 20, 2019, may help alleviate some of the burdens small employers face when providing retirement plans. Here are a few key things you need to know when evaluating what, if any, changes you should make to take advantage of this new legislation. 

OPEN MULTIPLE EMPLOYER PLANS

While Multiple Employer Plans (or MEPs) are not new to the retirement industry, they…

U.S. Supreme Court Holds That West Virginia Tax Exemption Unlawfully Discriminates Against Federal Law Enforcement Retirees

April 7, 2019

The United States Supreme Court recently put an end to West Virginia’s practice of exempting pension income of certain State law enforcement officers from the State’s income tax while disallowing the exemption for similarly situated federal retirees.  At issue was a provision in the State’s tax code that exempts from West Virginia income tax pension payments received from a number of pension funds…

Estate Planning Under the 2017 Tax Cuts and Jobs Act

January 22, 2018

On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act (“Tax Act”) into law which makes significant changes to the estate, gift, and generation skipping taxes.

The Tax Act doubles the estate, gift, and generation skipping tax exemptions to approximately $11.2 Million per person for 2018, which provides significant relief for high net worth individuals and families with valuable…

Tax Deferred Annuities – Heightened Fiduciary Scrutiny

November 14, 2016

Over the last several years, much has been written in connection with the surge of “excessive fee” litigation against Section 401(k) plans.  The surge continues and has now been extended to Section 403(b) plans which are often referred to as Tax Deferred Annuities.  One commentator estimates that over twenty class action excessive fee litigation cases were filed during the first quarter of 2016…

Employee or Independent Contractor? That is the Question

February 11, 2016

The federal government continues to focus on what various agencies refer to as “misclassified” employees -- workers who should be treated as employees but whom the employer classifies as independent contractors. Many businesses prefer to utilize independent contractors rather than employees. With independent contractors, businesses are not subject to FICA/FUTA obligations, federal and state…

Increased Limited Liability Company Tax Audits Are Coming

January 7, 2016

The increase in usage of limited liability companies (“LLCs”) as the business form of choice has led to changes in the IRS statutes concerning audits of LLCs. On November 2, 2015, President Obama signed the Bipartisan Budget Act of 2015 (“BBA”) into law. The BBA brings drastic changes to the audit process of partnerships which will allow the IRS greater enforcement and collection authority in…