EBIA Weekly Newsletter

EBIA Keeps You Informed About COBRA and 401(k) Plan Compliance

   March 24, 2016

You can rely on EBIA to keep you up-to-date on the continually changing compliance requirements for employee benefits. Here are highlights of what we’ve added lately to our COBRA and 401(k) Plans publications:

  • COBRA: The Developing Law. We’ve added a new discussion of recent guidance clarifying the impact of health FSA carryovers on a qualified beneficiary’s COBRA election. We’ve also updated our discussion of who must be offered COBRA to reflect proposed regulations and other guidance implementing Windsor and Obergefell. In addition, we note the issuance of updated forms and guidance implementing the recently restored and modified Health Coverage Tax Credit and have revised our sample election notices to include a description of the credit. You may also be interested in our recorded webinar “COBRA Basic Training: Practical Compliance Strategies” (recorded on 2/24/2016).

  • 401(k) Plans. We all know mistakes happen despite carefully designed procedures and practices. To help you determine whether your mistake can be corrected using the IRS’s self-correction program (SCP), we have designed an SCP Documentation Guide to walk you through the required steps in making that determination. This update also covers the IRS’s expansion of the rules on midyear amendments for safe harbor 401(k) plans. If your plan uses a safe harbor design, you will want to check out our discussion of these new rules. And if you are thinking about implementing a safe harbor plan, these new rules will make it easier. You may also be interested in our upcoming webinar “Common Mistakes and How to Fix Them: 401(k) Plans” (live on 7/21/2016).