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Department of Labor (DOL) issued final regulations establishing new safe harbors for the electronic delivery of required retirement plan disclosures under ERISA. As background, retirement plan administrators must deliver required disclosures using methods that are reasonably calculated to ensure actual receipt of documents by plan participants.  Under prior guidance from 2002, the DOL created a safe harbor electronic delivery method for required disclosures. But the 2002 safe harbor is only available with respect to employees…

Now that we have had a couple of weeks to digest the IRS’s guidance in Notice 2018-68 on the Tax Cuts and Jobs Act’s (TCJA’s) amendments to Code Section 162(m), it’s a good time to take a closer look at the “grandfathering” rule. As a reminder, the TCJA (i) eliminated the “performance-based compensation” exception to Section 162(m)’s $1 million limit on the deductibility of covered employee compensation, (ii) expanded and made permanent the group of…

Almost all plan documents contain some level of administrative provisions outlining how the plan is intended to operate (e.g., number of committee members, quorum, etc.).  Plan sponsors often view these provisions as “boilerplate” with little or no meaning.  In actuality, these are substantive provisions of the plan and failure to follow those provisions can have substantial consequences. The Consequences Failure to follow the terms of the plan document is a potential qualification issue under IRS…

Join Baker McKenzie for a two-part webinar series to examine how the Tax Cuts and Jobs Act impacts compensation and benefits arrangements maintained by both public and private companies and what actions your company needs to take. PART 1: From the PRIVATE Company’s Perspective | January 9, 2018 We will discuss the provisions with the biggest impact on private companies, including the introduction of a new income tax deferral regime for options and RSUs relating to “qualified stock.” PART 2:…