DOL Review of COBRA Premium Subsidy Denials
June 02, 2009
The American Recovery and Reinvestment Act of 2009 provides for a temporary federal subsidy of 65 percent of COBRA premium costs for "assistance eligible individuals" who become eligible for COBRA continuation coverage between September 1, 2008 and December 31, 2009 due to the involuntary termination of a covered worker. Those denied the COBRA premium subsidy by a group health plan may be eligible for expedited DOL review. The U.S. Department of Labor recently issued guidance and an application for such DOL review.
Business Hardship Suspensions of Nonelective Contributions to 401(k) Safe Harbor Plans
The IRS recently proposed regulations, on which taxpayers may rely, that allow employers whose 401(k) safe harbor plans provide for nonelective contributions to suspend those contributions in cases where the employer experiences a substantial business hardship. These proposed regulations provide such employers with an alternative to terminating safe harbor plans in times of substantial business hardship.
If you would like more information on the content of this alert, please contact Christine Burke Worthen, a shareholder and Chair of Eaton Peabody's Tax Practice, or Rodney A. Lake.
