Employee Benefits Bulletin December 2001
New Guidance including IRS Extends GUST Remedial Amendment Period
- IRS Extends GUST Remedial Amendment Period. In response to the September 11th terrorist attack, the IRS has changed the deadline for compliance of individually designed qualified plans with the requirements of several tax acts collectively known by the acronym “GUST.” Instead of year-end 2001, the new deadline is February 28th of 2002. Additional extensions may be granted to plans directly affected by the terrorist attack. (Rev. Proc. 2001-55).
- IRS Issues Final Regulations regarding the Family and Medical Leave Act (“FMLA”) and Cafeteria Plans. The regulations apply to cafeteria plan years beginning on or after January 1, 2002.
- IRS Issues Final Regulations on the Cross Testing Method of Nondiscrimination Testing. Regulation 1.401(a)(4)-8.
- IRS Issues Proposed Regulations on Withholding Taxes on Incentive Stock Options and Options Granted Under Employee Stock Purchase Plans. The regulations propose to apply FICA and FUTA tax to options exercised on or after January 1, 2003.
- IRS Issues Proposed Regulations on EGTRRA Catch-Up Contributions. (Please see “Catch-Up Contributions . . . How They Work.”)
- IRS Announces 2002 Standard Mileage Rates (Rev. Proc. 2001-54):
Business . . . 36.5 cents/mile
Medical . . . . 13 cents/mile
Moving . . . . 13 cents/mile
- Social Security Administration announces the 2002 OASDI contribution and benefits base
will be $84,900.
- PBGC Announces Maximum Guaranteed Benefit for retirees in underfunded, single-employer defined benefit plans terminating in 2002 will be $42,954.60 per year.
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