On October 9th, the IRS announced several inflation adjustments for 2026, including adjustments to the annual contribution and carryover limits for healthcare flexible spending accounts and the monthly limit for qualified transportation fringe benefits. Separately, the One, Big, Beautiful Bill increased the contribution limit for dependent care flexible spending accounts from $5,000 (or $2,500 for
FICA Tax: Navigating the Nonqualified Deferred Compensation Special Timing Rule
By Tyler Forni, David B. Teigman & Andrea S. Rattner on
Compensation is generally subject to federal income tax and FICA tax when compensation is actually paid to an employee. However, nonqualified deferred compensation (NQDC) may be subject to FICA taxation before federal income taxation under a FICA tax special timing rule. The scope of NQDC subject to FICA taxation is broad, including voluntary deferrals of…
IRS Clarifies that Failure to Cash Checks Does Not Affect Withholding or Reporting
By Seth Safra & Tyler Forni on
Revenue Ruling 2025‑15 (available here) provides guidance on withholding and reporting obligations when a plan participant or beneficiary fails to cash a distribution check and a replacement check is issued. As discussed below, the guidance is consistent with general constructive receipt principles.
First Check Issued to a Plan Participant or Beneficiary
When a qualified…
Executive Use of Corporate Aircraft: Navigating Tax, SEC Disclosure and Other Key Considerations
Companies are increasingly allowing their chief executive officers and, in certain circumstances, other executives to use corporate jets (which may be chartered flights or fractionally or fully owned aircraft) for personal use due to various reasons. Although this benefit may be a relatively small percentage of an executive’s overall compensation package, it is still likely…