Implications for 401(K) Plans in the Secure Act

As part of the 2020 appropriations act, Congress passed the SECURE Act (Setting Every Community Up for Retirement Enhancement Act of 2019), which was signed into law by the President on December 20, 2019. The SECURE Act has a number of implications for 401(k) plans, a summary of which follows. Increase in Maximum Automatic Deferral. …

What are the Three Most Important Words in Divorce?

The three most important words in any divorce action are the simple words: “can”, “may” and “should”. While parties tend to concentrate on the major issues of support, custody, and division of assets and liabilities, the use of these three words in the context of requesting relief through the divorce process and finalizing a settlement …

SECURE Act: IRA and Retirement Savings Contribution and Payout Periods Changed – “Stretch” IRAs Dramatically Limited

The SECURE (Setting Every Community Up for Retirement Enhancement) Act (the “Act”) was enacted as part of the massive December 2019 appropriations bill.  The inclusion of the Act was a surprise, since most thought that it had been taken off the table earlier in that year.  For the most part, the new rules are effective …

Corporate Redemptions – Sale of Stock or Dividend Payment?

A redemption of stock owned by a shareholder of a corporation may be characterized as a “sale or exchange” under IRC Section 302 or as a “dividend” payment under IRC Section 301. The manner in which the redemption is characterized will determine the tax treatment afforded the redemption and, more specifically, may impact whether the …

Defending Against an Order of Protection: Five Points to Consider Before Requesting a Hearing in Arizona

You and your spouse have commenced divorce proceedings and are in the process of negotiating an appropriate parenting time schedule for your children.  The next day, the doorbell rings, and when you answer it, a police officer serves you with an Order of Protection.  The Order of Protection prohibits you from seeing or even communicating …

Early Holiday Gift for Employers – IRS Extends 2019 ACA Reporting Deadline

As it has done in past years, the IRS has extended the Affordable Care Act (“ACA”) deadline for health plan sponsors to furnish individuals IRS Forms 1095-B and 1095-C by 30 days (IRS Notice 2019-63). Under the extension, the deadline for providing individuals Forms 1095-B and 1095-C is March 2, 2020 instead of January 31, …

The California Consumer Privacy Act Could Be Expensive for the Gaming and Hospitality Industry

Today’s gaming and hospitality companies are complex businesses and data driven processes and systems that collect significant and various types of customer information to provide unsurpassed customer service. However, the collection, processing, and storage of such information will now be more complex as regulatory bodies globally and governments in the U.S. impose tighter controls on …

Final Regulations Confirm No Clawback on Gifting

With the gift/estate tax exemption of $11,580,000 (in 2020) set to expire or “sunset” on December 31, 2025, many advisors have encouraged high net worth clients to make large taxable gifts and “use up” their gift tax exemption during lifetime and shelter future income and appreciation in the gifted assets from estate tax at death. …

Please Do Not Sign That Divorce Agreement Yet!

It is common for divorcing spouses to negotiate and resolve between themselves claims relating to division of property, debts, payment of spousal maintenance and parenting schedules for their children. When parties are able to reach these agreements on their own, the Court offers standard forms that parties can complete themselves and submit to the Court …

IRS Announces 2020 Annual Adjustments for Qualified Retirement Plan Limits

The IRS has announced the annual limits that will apply to qualified retirement plans in 2020. The key 2020 limits, as compared to the 2019 limits, are: For 401(k) plans, the maximum deferral limit increases by $500 to $19,500 for a participant who is under age 50. A participant who is age 50 or older …