[This article also appears in our Employment and Labor Law/Employee Benefits Executive Briefing: May 2014.] Employers have been considering the impact on benefit programs, including the qualified retirement plans, of the U.S. Supreme Court’s decision recognizing the validity of same sex marriages. In September, 2013, the IRS issued guidance about... Read More
Sponsors of qualified retirement plans know that, generally speaking, plan benefits cannot be taken from a participant through legal process or otherwise be assigned to anyone other than the participant. There is an exception for payments in connection with a divorce under a qualified domestic relations order or QDRO. Qualified... Read More
The IRS and Department of Labor issue a number of publications on different topics, including 401(k) plans. The IRS has posted on its website a couple of jointly issued publications directed at small employers who sponsor or are considering sponsoring 401(k) plans. The publications are “401(k) Plans for Small Businesses”... Read More
Despite upholding a $13.4 million judgment against plan fiduciaries, the Eighth Circuit gives plan sponsors a lot to like in Tussey decision.
On March 19, 2014, a three judge panel of the United States Court of Appeals for the Eighth Circuit issued its decision in Tussey v. ABB, Inc., No. 12-2056 (8th Cir. Mar. 19, 2014). The case came to the Eighth Circuit on an appeal of a decision by the United... Read More
“Having Trouble Understanding Your Fiduciary Fee Disclosures?” DOL Proposes Regulations Requiring New Disclosure “Guide”.
As noted in my previous Blog entries regarding the ERISA Section 408(b)(2) fee disclosures from covered service providers to plan fiduciaries, the original disclosures were required by July 1, 2012. Since that time, the U.S. Department of Labor (DOL) has been requesting copies of the required disclosures from plan sponsors... Read More
Individuals are permitted to roll over amounts in one IRA to another IRA only once in a 12 month period. The rollover must be completed within 60 days. A tax lawyer at a major New York law firm recently tripped on this rule to his detriment. The tax lawyer had... Read More
The bloggers who bring you BenefitsNotes.com are attorneys at Leonard, Street and Deinard. We are proud to announce that we will merge with Stinson Morrison Hecker on January 1, 2014, to form the firm of Stinson Leonard Street. You can learn more about our new firm at http://stinsonleonardmerger.com/. We welcome... Read More
IRS Issues Final Regulations on Permitted Mid-Year Reductions or Suspensions of Safe Harbor Contributions
In Final Regulations issued under Internal Revenue Code Section 401(k) in 2004, the IRS outlined procedures for revoking a safe harbor matching contribution formula after the beginning of a safe harbor plan year. Under those Final Regulations a safe harbor matching formula can be suspended during a plan year if... Read More
I blogged earlier this year about a tax court decision in which taxpayers used assets in their IRA to finance a new business in a structure sometimes known as ROBS or Rollover for Business Startups. Unfortunately, because of personal guarantees provided by the taxpayers at the time that the business... Read More
As a result of industry consolidation over the years, employers can find themselves responsible for pension plans of companies long out of existence. A recent federal district court decision imposed a penalty of $4,470 on a plan administrator who delayed providing the widow of a plan participant with the plan... Read More