BarbriSFCourseDetails
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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

  • work Practice Area

    ERISA

Date & Time
  • event Date

    Wednesday, September 9, 2020

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

This CLE course will provide employee benefits counsel with an in-depth analysis of the nuances and potential compliance traps with respect to the CARES Act retirement plan distribution and loan provisions. The panel will discuss recent IRS guidance regarding coronavirus-related distributions and loans, the waiver of 2020 required minimum distributions, and related ERISA compliance and plan administration issues. The panel will also discuss state tax considerations and the impact of receiving CARES Act retirement plan distributions on unemployment and disability benefits.

Faculty

David C. Olstein
Partner
Hogan Lovells

Mr. Olstein’s practice focuses on the fiduciary responsibility provisions of ERISA and the prohibited transaction excise tax provisions of the Internal Revenue Code. He has an extensive background advising financial institutions, plan sponsors, and investment committees on ERISA matters, including compliance with ERISA’s fiduciary duty and prohibited transaction rules, in connection with the investment of pension plan assets. Mr. Olstein regularly advises fund sponsors on the application of ERISA’s “plan asset” rules as they relate to the establishment and operation of private investment funds. From representing issuers and underwriters in connection with marketing securities to investors, to advising plan sponsors and independent fiduciaries in connection with the selection of annuity providers, he offers substantial experience at the intersection of ERISA and fiduciary responsibility. Mr. Olstein is an active member of the American Bar Association’s Section of Taxation and the New York City Bar Associati

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J. Rose Zaklad
Principal
Groom Law Group Chtd - Washington

Ms. Zaklad advises clients on the design and administration of tax-qualified and nonqualified retirement plans. She focuses on tax-qualified plan compliance issues, including IRS audits, rulings and corrections. Ms. Zaklad has extensive experience in assisting plan sponsors in navigating the plan termination process. 

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Description

On June 19, 2020, the IRS issued Notice 2020-50, which expanded the categories of “qualified individuals” who can receive favorable treatment for retirement plan distributions and loans under the CARES Act.. This guidance also addresses plan administrator reliance on participant certifications in determining whether a distribution satisfies CARES Act requirements, describes how distributions are to be reported under various scenarios, and includes a safe harbor for complying with the CARES Act provision delaying repayments of participant loans.

On June 23, the IRS issued Notice 2020-51, which explained what 2020 waived required minimum distributions can be rolled over, extended the rollover period for such distributions, provided relief from the one-per-12 month limitation on IRA rollover contributions, and provided a sample plan amendment for defined contribution plan sponsors to adopt in order to implement the required minimum distribution waiver provisions of the CARES Act.

The IRS guidance provides some clarity to plan administrators and participants regarding the federal tax treatment of CARES Act retirement plan distributions. However, state law issues remain unclear, such as whether these distributions will be subject to taxation under state law and whether they will reduce or offset unemployment or disability benefits.

Listen as our panel discusses the IRS rules guidance regarding retirement plan distributions and participant loans under the CARES Act, as well as state tax and benefit offset issues. Our panel will also offer best practices for plan administrators.

Outline

  1. New IRS rules for coronavirus-related retirement plan distributions
  2. New IRS rules for coronavirus-related participant loans
  3. New IRS rules for waiver of 2020 required minimum distributions
  4. State tax considerations and unemployment/disability benefit offset issues

Benefits

The panel will review these and other key issues:

  • What are the key takeaways from recently issued IRS Notice 2020-50 for retirement plan distributions and loans?
  • What are the key takeaways from recently issued IRS Notice 2020-51 for waiver of 2020 required minimum distributions?
  • What compliance issues arise in light of the IRS expansion of the “qualified individual” definition under the CARES Act?
  • What is the tax treatment of a re-contribution under the new rules?
  • What does the loan repayment safe harbor provision cover?
  • What rules apply to the rollover of distributions that, but for the CARES Act, would have been required minimum distributions?
  • What actions must a plan sponsor take to implement the plan distribution and loan provisions of the CARES Act?
  • What are the state tax and benefit offset issues for employers and employees to consider regarding CARES Act distributions?