Category Archives: Income Tax

What Happens to Participants’ 457(b) Deferral Elections When they Pass Away?

Just the other day, a public agency client contacted us to find out what to do with a participant’s 457(b) plan deferral election following the participant’s untimely death due to COVID. As with most cases, cities and special districts would … Continue reading

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Public Agency Early Termination Incentive Programs Are Subject to Special Tax Rules

With the looming specter of COVID-related budget shortfalls, many cities and special districts are thinking about early termination incentives as a way to reduce payroll costs. If your city or public agency is considering the use of early termination incentives, … Continue reading

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Take Your Pick – Employees Allowed to Choose Between Future 401(a) Plan Contributions and Future HRA Contributions

A recently issued IRS private letter ruling may provide public agencies and their employees with another way to give employees more control over the types of retirement benefits they will eventually receive. As we previously reported, governmental employers can provide … Continue reading

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Tightening Budgets, Layoffs and Ongoing Labor Negotiations Highlight the Value of Retiree Health Reimbursement Arrangements

Given the current circumstances, many public agencies are finding ways to use health reimbursement arrangements as creative and cost-effective benefits for their employees and former employees. As explained in earlier posts, HRAs possess a number of important and valuable features.

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CARES Act Authorizes Limited Employer Repayment of Student Loans

Public agency employers trying to recruit or retain highly skilled or highly paid younger workers (e.g., doctors, nurses, IT specialists, engineers) may want to take advantage of a limited employer-paid benefit under the CARES Act. This limited-time benefit, which is … Continue reading

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