Notice: The articles in this Archive are no longer of immediate interest or relevance and are preserved only for historic purposes for those who wish to peruse earlier writings.  The information in these articles may no longer be accurate as laws/regulations may have changed. Because this section is not updated or kept current for any changes in the law, readers should contact Mahoney&Associates before relying on anything in the Archive.

November 13, 2007 - Funding of Employee Health & Welfare Benefits by Internal Revenue Code (IRC) Section 125 Cafeteria Plans
M&A Vice President, Compliance & Juan Kelly, ASA, EA, MAAA, Senior Actuarial Advisor
The Internal Revenue Service (IRS) recently issued new proposed Regulations under Section 125 of the Internal Revenue Code of 1986 (the Code). They consolidate into one set of rules the numerous IRS interpretations issued over the past couple of decades in response to the continuingly changing federal tax laws. The old proposed and temporary Regulations have been withdrawn; therefore, employers must rely on the new proposed rules pending issuance of final Regulations, which were effective January 1, 2009.

November 8, 2007 - IRS Extends 409A Operational Relief Through 2008
M&A Vice President, Compliance and Juan Kelly, ASA, EA, MAAA, Senior Actuarial Advisor
In our eActionAlert dated October 18th, we notified you that the deadline for sponsors of Nonqualified Deferred Compensation Plans (NQDCPs) to comply with the documentation requirements under Internal Revenue Service (IRS) guidance for Section 409A of the Internal Revenue Code of 1986 (the Code) had been extended through December 31, 2008. We also noted, however, that beginning January 1, 2008 NQDCPs were still required to comply with the operational rules under IRS final Regulations, issued on April 17, 2007. We are pleased to inform you that the IRS has just published Notice 2007-86 (the Notice), which indicates that NQDCPs now have until December 31, 2008 to comply with the operational requirements of the final 409A Regulations. This is welcome news as it gives employers additional time to analyze their plans and make informed decisions regarding any changes that may be needed to bring the operation of their plans into compliance with the final Regulations.

October 18, 2007 - IRS Gives Limited Extension to Fully Amend Nonqualified Deferred Compensation Plans
M&A Vice President, Compliance and Juan Kelly, ASA, EA, MAAA | Senior Actuarial Advisor
In April 2007, the Internal Revenue Service (IRS) published final Regulations under Section 409A of the Internal Revenue Code of 1986 (the Code). IRS guidance under Section 409A imposes several requirements on Nonqualified Deferred Compensation Plans (NQDCPs), including proper plan documentation by December 31, 2007. If a NQDCP does not meet those requirements, the amounts deferred under the plan, unless subject to a substantial risk of forfeiture, are included in participants’ current income – and subject to an additional 20% federal income tax, interest and penalties. In response to requests from the largest law firms in the country for an extension of the documentation requirements, the IRS has just issued Notice 2007-78, which extends the deadline for amending NQDCPs to December 31, 2008. This eActionAlert discusses what you must do in order to take advantage of that extension as well as other aspects of the Notice.

August 9, 2007 - New State Mandates Prohibiting Discrimination in the Workplace (FL and VT)
Juan Kelly, ASA, EA, MAAA, Senior Actuarial Advisor
In the absence of comprehensive, uniform federal legislation, we continue to see piecemeal legislation on a state by state basis. This Alert discusses steps taken by Florida and Vermont to prohibit discrimination against employees subject to domestic violence and transgender identity respectively. The new laws were effective July 1, 2007.

August 7, 2007 - Paid Sick Leave Mandate for Employees Working in San Francisco
Juan Kelly, ASA, EA, MAAA, Senior Actuarial Advisor
For a long time California has been known for its worker-friendly laws. This eActionAlert discusses another in a series of pieces of legislation applicable to employers and employees in the City and County of San Francisco. The law and accompanying regulations are posing both administrative and financial challenges for employers.  

August 3, 2007 - Hurricane Preparations
M&A Editorial Staff
As we are all aware, hurricane season begins June 1st. Fear and a feeling of helplessness come from being unprepared, therefore, I would like to suggest that we all take charge of what to do in response to hurricane season by having a plan and being prepared. The attached document is from the CDC entitled “Key Facts About Hurricane Readiness”. Read this carefully. Also, I have listed below some additional ideas to help you prepare.

June 13, 2007 - Employers with Employees in Massachusetts – New Healthcare Reform Law, effective July 1, 2007
M&A Vice President, Compliance
If your company has employees within Massachusetts, a new state law, “An Act Providing Access to Affordable, Quality, Accountable Health Care” (the Act) may affect your company, its cafeteria and/or group health plans effective July 1, 2007. This law applies whether your group health plan is insured or self-funded. Therefore, there is heated discussion as to whether this health care reform law is preempted by the Employee Retirement Income Security Act of 1974 (ERISA). This Alert briefly discusses that issue and a few major provisions of the law.

February 23, 2007 - IRS Issues Guidance on PPA ’06 Changes
M&A Vice President, Compliance
The Internal Revenue Service (IRS) recently released Notice 2007-7, which provides guidance on some provisions of the Pension Reform Act of 2006 (the PPA) that are effective in 2007, or earlier, and apply to tax-qualified plans and Individual Retirement Accounts (IRAs). This Alert discusses the issues that are most likely to affect your company’s plans and their participants.