by Nancy S. Gerrie, Elizabeth A. Savard and Joseph K. Urwitz The American Taxpayer Relief Act of 2012 (the "fiscal cliff" bill) allows employers to amend 401(k), 403(b) and governmental 457(b) plans to permit participants to convert pre-tax account balances to Roth account balances. Previously, such conversions were permitted only when the pre-tax amounts could be distributed. To read the full article, click here.
by Amy M. Gordon and Susan M. Nash As you are probably aware, Congress has passed and President Obama has signed the American Taxpayer Relief Act of 2012 (ATRA), which avoided the “fiscal cliff.” This newsletter outlines what that means for your employer-provided fringe benefit plans. Qualified Transportation Plans ATRA extends through the end of 2013 the transit parity rule that makes the combined monthly limit for qualified transit pass and vanpooling benefits equal to the considerably higher monthly limit for qualified parking benefits. In 2012 the combined limit for transit pass and vanpooling benefits was only $125 per month, while the 2012 limit for qualified parking benefits was $240. As a result of the legislation, the combined transit pass/vanpooling limit for 2012 rises to $240. Note, however, the 2013 limit has not yet been announced. Qualified Adoption Assistance Benefits The income exclusion for employer-provided adoption assistance benefits...
by Diane M. Morgenthaler, Ruth Wimer and Jacob Mattinson With the fiscal cliff approaching in 2013, several favorable tax provisions affecting individuals and businesses are set to expire. Given this uncertainty, employers must prepare for changing payroll taxes and new limits on flexible spending account contributions, adoption assistance benefits and educational benefits. To read the full article, click here.
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