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Regulatory Compliance
While the retirement plan industry generally applauds the introduction and adoption of state-sponsored retirement plans, the possibility some could compete with and “crowd out” private plans due to how the legislation is structured is an ongoing concern.
However, in some states, the opposite is...
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The fiduciary standards in ERISA include an obligation to act prudently and solely for the exclusive purpose of providing benefits to participants and beneficiaries and for defraying reasonable expenses, and those standards apply to DB plans and DC plans. The Department of Labor (DOL) has not been...
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The fiduciaries of the 99 Cents Only Stores have come to terms in an excessive fee suit involving their 401(k) plan – and for considerably more than…99 cents.
That said, the relatively quick (the suit was filed only about a year ago on March 25, 2022) settlement was, by the standards of such...
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The Department of Labor’s Employee Benefits Security Administration (EBSA) on April 25 issued frequently asked questions (FAQs) on the annual funding notice requirements for multiemployer pension plans that received special financial assistance (SFA) funds under the American Rescue Plan (ARP) Act...
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The IRS has updated the information on its website concerning plan restatement periods and pre-approved plans.
Plan Restatement Periods
Plan sponsors of defined benefit plans that use an IRS pre-approved document have until March 31, 2025, to restate their plans with a 3rd cycle document. ...
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You know the story. The dreaded takeover case where the plan has a massive forfeiture suspense account that has been accumulating for years. Is this a problem? If so, how do you fix it?
We now have answers to these questions. On Feb. 27, 2023, the Treasury and IRS issued proposed regulations (...
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The American Retirement Association applauds the Department of Labor’s proposed addition of a self-correction option for delinquent participant contributions and loan repayments under the Voluntary Fiduciary Correction Program (VFCP) but contends that important clarifications are needed for plan...
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“Following several years of thorough and active litigation…including numerous dispositive and procedural motions, full discovery, and preparation for a twelve-day jury trial originally scheduled for April 2023,” the parties in an excessive fee suit have come to terms.
Here participant-plaintiffs...
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The IRS reports that it issued more than 1,200 determination letters concerning employee retirement plans in federal fiscal year (FY) 2022.
The information is contained in the IRS’ annual Data Book, this edition covering the period Oct. 1, 2021 to Sept. 30, 2022.
The annual Data Book details...
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On April 6, the Treasury Department and IRS released a Strategic Operating Plan detailing how new funding and thousands of new hires will be applied, saying it will provide taxpayers with “world-class customer service and reduce the deficit by hundreds of billions [of dollars].”
The resources —...
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The plaintiffs had claimed the plan fiduciaries had “an imprudent and disloyal preference for its own proprietary funds” — but have now come to terms.
Back in September of 2022, participant-plaintiffs Eric Goldstein, Matt Sudol, and Bonnie Zelazek, individually and as representatives of a class of...
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Another Midwestern federal court has found that the plaintiffs in a 401(k) excessive fee suit have failed to make their case.
This suit had been brought by participant-plaintiffs Ruth Williams, Tovah Allen, Carolyn Ross, Alicia Bates, and Tracy Young against Centene Corporation, the Board of...
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If you’re older than a certain age, you’re familiar with the tagline, “Roaches check in, but they don’t check out.” It’s kind of like that in a 401(k) plan. You can easily check your money in (contribute to the plan), but it can be hard to check it out (withdraw it).
Often, you can borrow money...
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The IRS has updated the information it provides for determining the tax treatment of pension and annuity income under the General Rule. The information is contained in revised Publication 939, General Rule for Pensions and Annuities, which the IRS has updated for 2022 reporting. The publication...
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The IRS has updated the information it provides concerning reporting contributions to IRAs. The information is contained in Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs).
What's New for 2022
The following information in Publication 590-A is new for 2022...
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The path to Senate confirmation for the current nominee to lead the Department of Labor appears to be getting narrower.
The latest salvo comes from House Ways and Means Committee Chair Jason Smith (R-MO), House Education and the Workforce Chair Virginia Foxx (R-NC), Speaker Kevin McCarthy (R-CA)...
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Eli Lilly has withdrawn its motion for attorney fees and costs — a move that says a lot about the cost of litigation in both time and money.
You may recall that the defendants in this case are the fiduciaries of the $8.2 billion Eli Lilly plan (as well as the company itself, and the employee...
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Another excessive fee suit with participant-plaintiffs represented by two active ERISA litigants — has been dismissed on a number of grounds.
The defendants in this case — DISH Network Corporation, the board of directors of that firm, and the retirement plan fiduciaries of the $841 million DISH...
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A federal judge has denied the Labor Department’s motion to move a suit involving the so-called ESG regulation from a federal court in Texas to Washington, DC.
U.S. District Judge Matthew J. Kacsmaryk denied the Department of Labor’s (DOL) motion (State of Utah et al. v. Walsh et al., case number...
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The Treasury Department and the IRS seek feedback regarding the tax treatment of a nonfungible token (NFT) as a collectible under the tax law. The matter has relevance not only for saving and investment, but also for IRAs.
The announcement comes in IRS Notice 2023-27.
The IRS also seeks...
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