Coffee Talk with Benefits Seyfarth Shaw LLP

In this episode, Richard and Sarah are joined by Ian Morrison, a Partner in Seyfarth’s ERISA Litigation group to delve into a new line of cases alleging that forfeitures are plan assets, and must be used to benefit plan participants. The plaintiffs in these cases are claiming that using forfeitures to offset employer contributions – a common practice - amounts to disloyal conduct by the fiduciaries and self-dealing by the employer. This episode also explores the defense's arguments that this practice is lawful, backed by longstanding Treasury Regulations and Department of Labor guidance. Grab your cup of coffee and tune in to hear Richard and Sarah discuss these recent cases with Ian, and the steps plan sponsors can take to navigate this evolving legal landscape.

Released by the IRS in the final days of 2023, Notice 2024-2 offers guidance on several aspects of the SECURE 2.0 Act, particularly focusing on instructions related to designated Roth matching and nonelective contributions. In this episode, Seyfarth’s Ben Spater provides insights on various aspects of the notice, including the participant eligibility to elect employer contributions, the irrevocability of Roth designations, the five-year holding period for tax benefits, and potential administrative complexities. Ben also clarifies how Roth contributions are treated for purposes of tax reporting. Grab your cup of coffee and tune in to hear Richard and Sarah discuss how these provisions impact retirement planning strategies, compliance considerations for employers, and what individuals need to know about managing their tax liabilities when it comes to Roth contributions in their retirement accounts.

On November 24, 2023, the IRS issued highly anticipated proposed regulations concerning the provisions under SECURE and SECURE 2.0, requiring 401(k) plans to expand deferral eligibility for long-term part-time employees. The proposed rules answer a number of burning questions that have been lingering since 2019 when SECURE was first enacted. In this special episode, Seyfarth Partner Diane Dygert and our very own co-host Sarah Touzalin delve into the intricacies of identifying long-term part-time employees, the nuanced vesting rules applicable to long-term part-time employees, the newly introduced concept of former long-term part-time employees, and what, if anything, plan sponsors and administers need to do for 2024. Grab your cup of coffee and tune in for a lively discussion of these proposed rules!

Earlier this year, the Biden-Harris Administration took a firm stance against 'junk insurance' by introducing regulations aimed at impacting short-term limited duration insurance policies, independent non-coordinated coverage, and level funded plan arrangements. In this episode, our guests Diane Dygert and Benjamin Conley provide insights on these proposed regulations, addressing employee comprehension gaps, coverage notifications, and potential tax implications. Diane and Ben also draw from practical examples, stressing the importance for employers to reassess FICA avoidance strategies. Grab your cup of coffee and tune in to hear Richard and Sarah discuss the current regulatory landscape and what employers should consider when offering or renewing such benefit plans.

Enacted in December 2022, the SECURE 2.0 Act contains over 90 provisions that impact qualified retirement plans. Notably, SECURE 2.0 mandates the adoption of auto-enrollment features for plans established after its enactment. Grab your cup of coffee and tune in to hear Richard and Sarah chat with Matthew Calloway from Mercer, about the effects that these requirements have on existing and new plans, as well as potential legislative developments, making this a must-listen for plan sponsors and HR professionals alike.

On this episode of Coffee Talk With Benefits, Richard and Sarah venture out of the office as part of an Employee Benefits retreat and engage in brief discussions with their colleagues, Diane Dygert, Caroline Pieper, Alisha Sullivan, Ben Conley, Jen Kraft, Sam Schwartz-Fenwick, and Ada Dolph covering a range of interesting topics. Join us as we discuss what it means to be a "slob" in the ERISA world, the gag rule and what are NOT fiduciary best practices, among other things. Grab your cup of coffee and tune in for a lively episode.