Technology Law Blog, IT Law & Articles | Foster Swift

IRS Announces 2026 Cost-of-Living Adjustments for Retirement Plans and for Health and Welfare Benefit Plans

Amanda J. Dernovshek, Julie LaVille Hamlet, Mindi M. Johnson, Olivia K. Reid — Fri, 05 Dec 2025 09:00:01 -0500

This blog has been updated since November 7, 2024. The data below is current.

The IRS has announced the 2026 cost-of-living adjustments for retirement plan and health and welfare benefit plan limitations. The charts below set forth the applicable limitations for 2026 relative to the 2025 limitations.

Retirement Plans

The chart below represents some of the important changes the IRS has made to limitation requirements for retirement plans. The changed limitations are between the 2025 limits and the 2026 limits. If you would like to review a complete explanation of all limitation ...

IRS Expands Self-Correction Program: What Plan Sponsors Need to Know About the Interim Guidance

Amanda J. Dernovshek, Mindi M. Johnson — Fri, 18 Jul 2025 09:00:02 -0400

The IRS has made it easier for retirement plan sponsors to fix common plan mistakes without going through a formal filing process. Under interim guidance in Notice 2023-43, sponsors can now correct a broader range of errors internally -- saving time, cost, and administrative hassle. This expanded self-correction relief, part of the SECURE 2.0 Act, is available immediately and gives plan sponsors more flexibility, provided that certain conditions are met.

Expanded Self-Correction Authority Now in Effect

Effective immediately and continuing until Rev. Proc. 2021-30 is formally ...

Comparative Summary of Equity Incentive Plans for Private Companies

Nicholas J. Stock II — Wed, 16 Jul 2025 09:00:03 -0400

Equity incentive plans are a powerful tool for encouraging and rewarding a company’s employees and leadership, who may include prospective investors, through different kinds of equity interests and structures. Different structures can present different tax and economic consequences for the company and participants upon grant, vesting, purchase, or later sale.

Closely held businesses vary widely in size, budget, legal and tax structure, sophistication, compensation philosophy, and risk tolerance. Incentive programs therefore also vary widely among closely held and ...

IRS Announces 2025 Cost-of-Living Adjustments for Retirement Plans and for Health and Welfare Benefit Plans

Amanda J. Dernovshek, Julie LaVille Hamlet, Mindi M. Johnson — Thu, 07 Nov 2024 09:00:04 -0500

This blog has been updated since December 4, 2023. The data below is current.

The IRS has announced the 2025 cost-of-living adjustments for retirement plan and health and welfare benefit plan limitations. The charts below set forth the applicable limitations.

DOL Echoes Employee Benefits and Cybersecurity Best Practices

Amanda J. Dernovshek, Taylor A. Gast, Mindi M. Johnson — Wed, 02 Oct 2024 09:00:05 -0400

On April 14, 2021, the U.S. Department of Labor’s (“DOL”) Employee Benefits Security Administration (“EBSA”) issued its first cybersecurity best practices guidance for retirement plans. The EBSA guidance was highly anticipated as the frequency and cost of data breaches affecting employee benefit plans continues to rise.

Is it Time to Update and Restate Your Summary Plan Description?

Amanda J. Dernovshek, Julie LaVille Hamlet, Mindi M. Johnson — Wed, 24 Jul 2024 09:00:06 -0400

A Summary Plan Description, often referred to as an “SPD”, is a document intended to clearly describe and explain the important provisions of an employee benefit plan. The SPD must be written in such a way that the average employee will understand the benefits, rights and rules of the plan.

Executive Compensation and Negotiation Essentials for Women Leaders

Mindi M. Johnson — Tue, 02 Aug 2022 09:00:07 -0400

Staying competitive, especially in a male-dominated profession, can seem like a daunting task for many women.

In your discussions with your current or future employer, it is crucial to know when to approach and ask for extra benefits. These benefits go beyond standard taxable compensation. The timing and type of benefits are very fact-specific and will depend on your role and company: do your research. Understanding a company's goals and business concerns as they relate to long-term retention allows you to shape your proposition. It is also helpful when it comes to understanding your employment and compensation goals, offering a mutual benefit to both yourself and your employer.

IRS Makes it Easier to Correct Certain Retirement Plan Compliance Issues

Amanda J. Dernovshek, Julie LaVille Hamlet, Mindi M. Johnson — Mon, 26 Jul 2021 09:00:08 -0400

On July 16, 2021, the IRS issued Revenue Procedure 2021-30, an updated version of the Employee Plans Compliance Resolution System (“EPCRS”). Retirement plan sponsors may use EPCRS to correct certain compliance mistakes, and avoid the adverse tax consequences associated with plan disqualification.

We have provided a summary of the changes below.

Department of Labor Releases Employee Benefits and Cybersecurity Best Practices

Amanda J. Dernovshek, Taylor A. Gast — Fri, 23 Apr 2021 09:00:09 -0400

On April 14, 2021, the U.S. Department of Labor’s (“DOL’s”) Employee Benefits Security Administration (“EBSA”) issued its first cybersecurity best practices guidance for retirement plans. The EBSA guidance has been highly anticipated as the frequency and cost of data breaches affecting employee benefit plans continues to rise. The EBSA guidance focuses on actions that plan sponsors, plan fiduciaries, record-keepers, and plan participants can take.

2021 Arrives with Additional Flexibility for Flexible Spending Accounts

Amanda J. Dernovshek, Julie LaVille Hamlet, Mindi M. Johnson — Wed, 24 Feb 2021 09:00:10 -0500

During 2020, a number of newly enacted laws created flexibility for various employee benefit plans. Please see Foster Swift’s publications on this topic here. The Consolidated Appropriations Act of 2021 (the “Act”), which was signed into law on December 27, 2020, provides additional flexibility for Health Flexible Spending Accounts (“Health FSAs”) and Dependent Care Assistance Plans (“DCAPs”), specifically.

New Safe Harbor Announced for Electronic Disclosures Required by ERISA

Amanda J. Dernovshek, Julie LaVille Hamlet, Mindi M. Johnson — Thu, 04 Jun 2020 09:00:11 -0400

For more articles from the June 2020 Issue of Business & Tax Law News, click here.

The Employee Retirement Income Security Act of 1974 (“ERISA”) and its applicable regulations require a plan administrator to provide a number of notices to plan participants. For example, an ERISA plan administrator must provide to all plan participants a Summary Plan Description (“SPD”) that provides an overview of plan terms. Additionally, a plan administrator must provide a Summary of Material Modifications (“SMM”) to plan participants every time it makes certain changes to the plan.

Fiduciary Rule: More Changes Being Considered

Thu, 06 Jul 2017 09:00:12 -0400

The United States Department of Labor (the "DOL") published a request for comment in the Federal Register on July 6 with respect to its often discussed fiduciary rule (the "Fiduciary Rule"). This time, the DOL hopes to clarify uncertainty moving forward, as the Fiduciary Rule and its related prohibited transaction exemptions (the "PTEs") became partially effective on June 9, 2017, and will be fully implemented on January 1, 2018. However, recent events have brought the wisdom of a January 1, 2018 applicability date into question.

Benefit Plans Established by Church Affiliates Are Exempt From ERISA

Tue, 13 Jun 2017 09:00:13 -0400

On June 5, 2017, the United States Supreme Court held that employee benefit plans established by church-affiliated organizations are church plans pursuant to the church plan exemption under the Employee Retirement Income Security Act of 1974 (“ERISA”).