Recent Developments – Employee Benefits – 01.31.17

Executive Summary: A flurry of activity in the Employee Benefits area has taken place in the past few months. This advisory summarizes the recent developments.

1. The IRS published proposed regulations that will permit a 401(k) plan sponsor to use the plan's forfeiture account to fund QNECs and QMACs needed to pass the ADP and /or ACP nondiscrimination tests.
2. The DOL released regulations setting forth new requirements for the ERISA claims procedures for disability-related benefits.
3. The IRS published guidance on the taxation of "fixed indemnity health plans" provided through a cafeteria plan and of wellness plan rewards.
4. The "21st Century Cures Act" was enacted:
   • Allowing small employers to offer health reimbursement arrangements to their employees without violating the Affordable Care Act's group plan rules. This legislation overturns prior IRS and DOL guidance issued in 2013 and 2015;