In 2018, the IRS modified its program for correction of plan qualification failures to significantly increase the fees for getting approval of corrections under the Voluntary Compliance Program (“VCP”). Since that occurred, the IRS has issued expanded permissible self-correction methods under Revenue Procedure 2019-19. This new Procedure provides many new ways in which a plan sponsor may act independently to fix errors to retain the plan’s tax qualification, without IRS filings, user fees, or other involvement. The new procedure permits plans to self-correct failures in two categories that previously required VCP filings: problems with participant loans and plan amendments. 1. In regards to loan failures, the new procedure permits self-correction of loan failures if the failure relates to • A default on loan payments (if..
The North Suburban Hospital District, a political subdivision representing the citizens of Blaine, Fridley, Hilltop, Mounds View and Spring Lake Park, quietly and gracefully ended its long existence on April 10, 2019. The Hospital District was formed in 1960 for the primary purpose of building and initially operating Unity Hospital in Fridley. At the time it was formed and for the next 50 plus years, the Hospital District provided its citizens with a locally focused and stand-alone hospital providing a broad range of services. In meeting its obligation to the citizens of the five cities, the Hospital District contracted with service providers who operated the hospital. In recent years, the Hospital District weaned Unity from relying on tax dollars and did not levy taxes on..
As of April 2, 2019, there are two bills rapidly moving through Congress with bipartisan support. The Setting Every Community Up for Retirement Enhancement Act of 2019 (“SECURE”) passed the House and the Senate has proposed the Retirement Enhancement Security Act of 2019 (“RESA”). The bills are very similar and because there is bipartisan support it is likely that something will be passed soon. Some of the proposed changes are as follows: 1. Encourage employees to participate in automatic contributions in 401(k) plans and require employers to provide estimates of how much an employee’s account would provide employees if it were invested in an annuity. 2. Make it easier for small employers to join other employers in multiple-employer plans. 3. Easing nondiscrimination rules for frozen..
The Basics The Family Medical Leave Act, or FMLA, allows employees to take 12–26 months of unpaid leave for their own or a family member’s medical reasons. The FMLA generally applies to employers who have 50 or more employees. An employee covered by the FMLA must have been employed for at least a year and has worked at least 1,250 hours during preceding 12-month period. Intermittent FMLA and Reduced Leave Schedules Taking FMLA for a medical procedure or illness is one matter, it is another when that illness comes and goes unexpectedly. This is where intermittent FMLA and reduced leave schedules come into play. Intermittent FMLA allows employees to take FMLA in periodic blocks of time. For example, a pregnant mother may take days off..
Barna, Guzy & Steffen LTD. is pleased to announce the addition of a new attorney to our firm. Joseph J. Deuhs, Jr. brings to BGS extensive expertise in representing financial institutions and commercial real estate owners. He will work closely with attorneys practicing in the firm’s Real Estate/Banking Department as he works with existing and new clients. Deuhs joins BGS after practicing for more than 25 years at the law firm of Leonard, O’Brien Spencer Gale & Sayre, LTD in Minneapolis where he began as an Associate in 1990. His extensive legal expertise in providing representation to financial institutions includes decades of counsel in matters of commercial lending transactions, workouts, restructures, enforcement of creditors’ remedies and other banking matters. Deuhs also has experience in..