EBIA Weekly Newsletter

Under the 401(k) Plan Safe Harbor Rules for Hardship Distributions, Who Is a Dependent?

   February 23, 2017

QUESTION: Our 401(k) plan offers in-service hardship distributions using the Code’s hardship safe harbor events. Three of those events—medical, educational, and funeral expenses—permit hardship distributions to be made on account of a participant’s dependent. Who is a dependent for those safe harbor hardship events? ANSWER: The safe harbor hardship events for medical, educational, and funeral … Read More

Judgment Against Fiduciary for Misuse of Plan Assets Cannot Be Discharged in Bankruptcy

   February 16, 2017

In re Harris, 2017 WL 65392 (B.A.P. 8th Cir. 2016) Available at http://media.ca8.uscourts.gov/opndir/17/01/166024P.pdf A company facing significant financial difficulties failed to remit health plan premiums withheld from employees’ paychecks to the plan’s insurer, and instead paid other expenses, including personal expenses of the company’s CEO. Eventually, the employees’ health coverage was retroactively terminated. … Read More

IRS Issues 2016 Version of Publication 463 on Travel, Entertainment, Gift, and Car Expenses

   February 16, 2017

IRS Publication 463 (Travel, Entertainment, Gift, and Car Expenses (for 2016 Tax Returns)) Available at https://www.irs.gov/pub/irs-prior/p463–2016.pdf The IRS has released its latest version of Publication 463 (Travel, Entertainment, Gift, and Car Expenses) for use in preparing 2016 tax returns. This publication explains when employees and sole proprietors may deduct work-related travel, entertainment, gift, … Read More