Qualified Non-Elective Contribution (QNEC) Archives

View From McDermott: Hurricane Survival Guide for Employee Benefit Plans and Employers

by Diane Morgenthaler | Oct 5, 2017 | Employee Benefits, Employee Stock Ownership Plans (ESOPs), Employment, Health and Welfare Plans, Retirement Plans

According to U.S. News & World Report, estimates for the cost of Hurricane Harvey’s damage have come in as high as $190 billion, and damage estimates for Hurricane Irma are still rolling in but range up to $100 billion. To assist taxpayers affected by these devastating storms, the Internal Revenue Service, Department of Labor, and Pension Benefit Guaranty Corporation have granted multiple forms of relief to taxpayers impacted by Hurricane Harvey, Hurricane Irma, and other disasters enumerated by the Federal Emergency Management Agency.

Hurricane Harvey Relief for Employee Benefit Plans

by Allison Wilkerson and Diane Morgenthaler | Sep 7, 2017 | Employee Benefits, Employee Stock Ownership Plans (ESOPs), Employment, Fiduciary and Investment Issues, Health and Welfare Plans, Labor, Retirement Plans

The Internal Revenue Service and the Department of Labor relaxed some deadlines for eligible employee benefit plans and expanded the availability of withdrawals and loans for eligible defined contribution plan participants in the disaster area. However, the Pension Benefit Guaranty Corporation announced that some of its required filings will not be extended automatically.

New IRS Guidance Allows Plan Sponsors to Use Forfeitures for Safe Harbor Contributions, QNECs and QMACs

by Lisa Loesel and Sarah L. Engle | May 18, 2017 | Employee Benefits, Retirement Plans

Earlier this year, the IRS released proposed regulations which permit employers to use forfeitures to fund safe harbor contributions, QNECs and QMACs.

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IRS Will Now Permit DC Plan Hardship Withdrawal Self-Certification Summaries

by Maggie McTigue | Apr 6, 2017 | Employee Benefits, Retirement Plans

Two recently published memoranda by the Internal Revenue Service (the IRS) indicate that it is permissible for 401(k) and 403(b) plan sponsors and their third party administrators (TPAs) to rely on participants’ written summaries describing their financial hardships when processing hardship withdrawals from plans that apply the safe harbor event rules. Plan sponsors and TPAs may find relief from the former time-consuming, manual reviews of participants’ hardship withdrawal documentation.

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