Succession planning is a critical aspect of managing small, closely held businesses, as the unexpected departure of a key leader can significantly disrupt operations and challenge the business's legal...
Entering into a letter of intent for an office lease agreement? Consult our playbook for valuable key provisions, alternative language provisions, and guidance for both landlords and tenants. Download...
In the complex world of M&A transactions, transition services agreements (TSAs) serve as critical bridges between deal closing and operational independence thus creating stability during organizational...
This practice note covers key legal and regulatory issues to evaluate, questions to ask, and documents to review in medical device or diagnostic technology deals, including M&A, investments, financings...
New regulations dealing with Form 5500 filings (for 2023 plan years and after) could reduce filing requirements for small employer plans. 88 Fed. Reg. 11,984 (Feb. 24, 2023). The agencies modified the participant counting methodology for small/large plan status, which matters because small plans can file a short-form Form 5500; audited financial statements are not required and filing requirements are simpler. Currently, DC plans, which dominate the retirement plan spectrum, are characterized as small plans if they cover fewer than 100 participants at the beginning of the plan year. Current methodology counts participants based on (1) the number of participants with account balances (active and terminated), and (2) the number of participants who are eligible to contribute, even if they don’t have an account balance. The new rule will limit the count to active and terminated participants with an account balance at the beginning of the year. This makes a difference! Combined with the cash-out limit rising to $7,000, under SECURE 2.0, beginning in 2024, smallish employers can better manage accounts to 100 by dutifully cashing-out small accounts following employee terminations.
Read now »
Related Content
Legal Developments
Practical Guidance UpdatesFeaturing the latest updates from your Practical Guidance account.
Experience results today with practical guidance, legal research, and data-driven insights—all in one place.Experience Lexis+
* The views expressed in externally authored materials linked or published on this site do not necessarily reflect the views of LexisNexis Legal & Professional.