Complying with the Windsor Decision: Mid-Year Amendment for Safe-Harbor 401(k) Plans

Kevin Hogan • May 22, 2014

Previously, the IRS issued guidance on what employers need to do in order to comply with the United States v. Windsor decision. The guidance insturcts employers on how and when to amend a qualified retirement plan if its current terms regarding marriage and the definition of spouse are inconsistent with Windsor.  In short, the employer must adopt an amendment by December 31, 2014 that is consistent with the Windsor decision.  Please see IRS Notice 2014-19 , Anne Meyer’s blog post , and Nancy Campbell’s blog post for more information on the Windsor decision and the required amendment.

One question that was left unanswered by the IRS’s prior guidance on Windsor was whether a Section 401(k) or 401(m) safe-harbor plan could adopt a mid-year amendment without risking its safe-harbor status.  The IRS answered this question by releasing Notice 2014-37 , which provides that, while a safe-harbor plan is generally not permitted to adopt mid-year amendments, it can adopt a mid-year amendment to comply with Windsor without jeopardizing its safe-harbor status.  Please note that the mid-year amendment must be adopted in accordance with the guidance provided in Notice 2014-19.

Employee burnout: what it is and how to prevent it

By Mardy Gould • May 24, 2024
Employee burnout has become an epidemic in today’s modern workplace. So much so that the World Health Organization (WHO) officially recognizes it as an “occupational phenomenon.”1 While many used to consider mounting workplace stress an individual employee problem, these days, it’s become an employer’s responsibility to prevent burnout before it hurts productivity and business performance—not to mention your employees’ physical and mental health. Luckily, you can prevent burnout from affecting your workforce in several ways. This article will explore the causes and signs of employee burnout and the steps you can take to create a positive work environment where employees feel safe from toxic stress levels.

Form 720 and PCORI fee FAQs

By Mardy Gould • May 23, 2024
If you're a small business owner, you may have heard of the acronym PCORI and the fees that come with it. But what is PCORI, and how does it apply to your organization? Under the Affordable Care Act (ACA), sponsors of self-insured health plans must pay a fee to fund the federal Patient-Centered Outcomes Research Institute (PCORI). PCORI is an independent organization the ACA created to conduct research to help healthcare consumers make better decisions for their specific needs and outcomes. It also performs research related to clinical effectiveness. Employers offering a self-insured medical reimbursement health plan, such as a health reimbursement arrangement (HRA), must pay this fee by July 31 each year via Form 7201. This fee was initially set to expire in 2019, but Congress extended it through September 30, 20292, due to the Further Consolidated Appropriations Act of 20203.
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