Benefits & ERISA Law

Free ERPA CE by the IRS on March 24, 2011

Posted on March 21, 2011
The IRS is hosting a free webinar on March 24, 2011 at 2pm ET on the proper completion and processing of Form 5330, along with ways to avoid common mistakes and how to make the processing by the IRS go smoother. The four speakers are Betty McClernan, Area Manager, EP Examinations Programs and Review; David [...

Benefits, Rights, and Features, Treas. Reg. 1.401(a)(4)-1(b)(3) and Regulation Friday

Posted on March 11, 2011
Most weeks are so packed with new information and guidance coming from the IRS, DOL, PBGC and SEC that existing guidance sometimes gets lost in the shuffle. For this reason, I think Fridays are a good time to take a step back from everything that is new, and focus on some of the existing guidance, [...

Schedule SSA Morphs Into Form 8955-SSA

Posted on March 03, 2011
When the DOL switched to mandatory electronic filing for Form 5500, Schedule SSA went by the wayside. This was unfortunate because Schedule SSA provided a quick way to track vested terminated participants as they exit out of a plan, especially when backtracking through a plan’s history and census information as part of terminating the plan [...

Free ERPA CE From the IRS

Posted on February 25, 2011
I love free ERPA CE, especially when it is hosted by the IRS. There is still time to register for the FREE hour-long webinar that the IRS is hosting on March 4, 2011 at 2pm ET. The IRS says it will focus on recently published guidance as well as updates on current IRS initiatives in [...

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Sometimes Late is Better Than Never

Posted on December 23, 2010
Today, the IRS issued two Notices providing some more guidance about the Affordable Care Act. In Notice 2011-1, the IRS delayed that compliance with section 2716 of the Public Health Service Act Act is not required until after regulations or other administrative guidance is issued under section 2716...

The Six Year Submission Cycle Begins Again

Posted on December 13, 2010
Hallelujah! Just in time for Christmas the IRS has released Notice 2010-90. It contains the 2010 Cumulative List, which is to be used to restate individually designed Cycle A plans and submit them to the IRS for a determination letter between Feb. 1, 2011 and Jan...

DOL Releases Final Regs Requiring Annual Fee and Expense Disclosures

Posted on October 14, 2010
Today, the DOL released the Final Regulations on Fiduciary Requirements for Disclosure in Participant-Directed Individual Account Plans. The regs are 142-pages long and are effective on December 20, 2010. More importantly, they are applicable to covered individual account plans for plan years beginning on or after November 1, 2011...

IRS? PTIN Registration System Now Available

Posted on October 06, 2010
A few days ago, the IRS released a Special Edition of Retirement New for Employers. It says the new Preparer Tax Identification Number (PTIN) system is now available and taking registrations. The IRS also posted a pretty extensive FAQ on the new PTIN system and who must register...

Restating a Defined Contribution Plan Prior to Terminating

Posted on January 07, 2010
Now that the annual -6 Revenue Procedure has been released – Rev. Proc. 2010-6 – I’m starting to receive a lot of questions about Section 12.07 of that Rev. Proc. Does it really say that a terminating plan does not need to be restated??? A quick check of Section 12...

Annual Limitation on Deductions for Health Savings Accounts for 2010

Posted on May 15, 2009
Today, the IRS released Revenue Procedure 2009-29 containing the inflation adjusted amounts for Heath Savings Accounts (HSAs) as determined under Code section 223 for 2010. For calendar year 2010, the annual limitation on deductions under Code section 223(b)(2)(A) is $3,050 for an individual with self-only coverage under a high deductible health plan...

DOL and SEC Schedule Joint Hearing on Target Date Funds

Posted on May 14, 2009
The Dept. of Labor and the Securities and Exchange Commission have announced a joint one-day hearing on target date or lifecycle funds and other investment options. The hearing is scheduled for June 18, 2009. It will be held at the Dept. of Labor, 200 Constitution Ave NW, Washington, D...

Disabled by AIDS in 1994 Does Not Mean Still Disabled in 2006 According to 7th Circuit

Posted on May 07, 2009
If a condition is grave enough to warrant disability in 1994, why isn’t it sufficient to warrant disability in 2006? The 7th Circuit Court of Appeals addressed this question in Jenkins v. Price Waterhouse Long Term Disability Plan, No. 06 C 603 (May 4, 2009)...

IRS Extends Deadline to June 30th for Multiemployer Plans

Posted on April 30, 2009
Today (April 30th) was the deadline for multiemployer plans to make certain elections described in sections 204 and 205 of the Worker, Retiree, and Employer Recovery Act of 2008 (WRERA). Recognizing that some multiemployer plans need additional time, the IRS issued Notice 2009-42 today, which extends the deadline from April 30, 2009 to June [...

8th Circuit Decides Signed Letter to Participants Plus SPD Equals Amendment

Posted on April 22, 2009
In Halbach v. Great-West Life & Annuity, No. 07-3865/07-3867 (CA8 April 13, 2009), the 8th Circuit Court of Appeals recently addressed what constitutes a valid amendment to an employee welfare benefit plan. In 2004, Great-West provided a package of medical coverage to both active employees and former employees who were also receiving long-term disability [...

60 Minutes Looks at 401(k) Fees

Posted on April 20, 2009
If you missed 60 Minutes last night, you missed Steve Kroft taking a look at 401(k) fees. Last night’s episode is available online here. The segment included a short interview with Rep. George Miller. The interview mentions the 401(k) fee disclosure legislation which Rep...

403(b) Prototype Program Excludes Plans with Vesting Schedules

Posted on April 17, 2009
Yesterday, I attended the IRS’ 403(b) Phone Forum featuring IRS Senior Tax Law Specialist Robert Architect. One of the topics briefly discussed by Mr. Architect was the new prototype program for 403(b) plans, as stated in Announcement 2009-34. One of the surprising parts of Announcement 2009-34 is that 403(b) prototypes approved by the [...

IRS Issues 403(b) LRMS and Details of Pre-Approved 403(b) Prototype Plans

Posted on April 14, 2009
Today, the IRS took two major steps forward toward pre-approving 403(b) plan documents when it issued the Listing of Required Modifications (LRM) for 403(b) plans and also issued Announcement 2009-34 which requests comments on the draft Revenue Procedure for 403(b) Prototype Plans...

Termination Premiums are not Pre-Petition Claims Dischargeable in Bankruptcy

Posted on April 09, 2009
In PBGC v. Oneida, No. 08-2964-bk (CA 2nd, April 8, 2009), the Court of Appeals for the 2nd Circuit reversed the decision of the U.S. Bankruptcy Court for the Southern District of New York. The 2nd Circuit found that payments due to the PBGC as a result of an employer’s termination of a pension [...

Some Enrolled Retirement Plan Agent Statistics

Posted on March 25, 2009
When the IRS first began discussing whether another category of individuals permitted to practice before the IRS was needed in the qualifed pension and retirement plan arena, the big question was how many individuals would be interested in applying for the new category if it was created...

Dept. of Labor Issues Model COBRA Notices

Posted on March 19, 2009
Today, the Dept. of Labor issued 4 Model Notices which can be used to comply with the notification requirements contained in the American Recovery and Reinvestment Act of 2009 (ARRA) relating to COBRA provisions. The Model Notices are: The full version General Notice which must be sent to all qualified beneficiaries, not just covered employees, [...

List of Expiring Tax Code Provisions

Posted on March 11, 2009
The Joint Committee on Taxation has released a list of tax code provisions which expire between 2008 and 2020. This list contains a number of items which relate to qualified plans and IRAs. Specifically, as stated on the list: Provisions Expiring in 2009: 47...

410(b) Testing and Employees Terminated With More than 500 Hours

Posted on March 04, 2009

Opinions Wanted About EPCRS Self-Correction Program

Posted on March 04, 2009

And The Lilly Ledbetter Litigation Begins

Posted on February 11, 2009
It took just 8 days for the ERISA-related litigation over the Lilly Ledbetter Fair Pay Act of 2009 to begin. When President Obama signed the Lilly Ledbetter Act into law on January 29, 2009, it was heralded among the non-ERISA community as creating a new world of equal pay for equal work...

Madoff Victims Include Small Pension Plans

Posted on February 06, 2009
Speculation over how many pension plans were defrauded of assets by Madoff came to a close yesterday with the publication of the long list of victims which has been filed with the Bankruptcy court handling Madoff’s assets. (hat tip to the Wall Street Journal) One of the interesting points of the Madoff story [...

It?s Official - DOL Applies Rahm Emanuel?s Memo to Investment Advice Regs

Posted on February 05, 2009
Today, the Dept. of Labor issued a Notice proposing a 60-day extension and a new comment period for the investment advice regulations which the DOL published in the Federal Register on January 21, 2009. Originally effective on March 23, 2009, the DOL has now opened the comment period on the extension until February 18, [...

Supreme Court to Divorced Participants - Check Beneficiary Designations if No Valid QDRO

Posted on January 27, 2009
“ERISA provides no exception to the plan administrator’s duty to act in accordance with plan documents.” - Headnote 2, Kennedy v. Plan Administrators for Dupont Savings. In the game of QDRO beneficiary tug-of-war between an ex-wife and daughter over a deceased participant’s account balance, the U...

Senate Passes Lilly Ledbetter Act Addressing Discriminatory Compensation

Posted on January 22, 2009
The Senate has approved S. 181, the Lilly Ledbetter Fair Pay Act of 2009, by a vote of 61-36. This bill has already passed the House and now heads to President Obama for his signature. This Act is interesting for retirement and pension plans because it addresses the U...

Rapid Fire Required Minimum Distribution Guidance for 2008 and 2009

Posted on January 12, 2009
Late in 2008, when the Worker, Retiree, and Employer Recovery Act of 2008 (WRERA) was signed into law, one of the provisions it contained was a waiver of Required Minimum Distributions (RMDs) for 2009 (not for 2008) for retirement plans which hold each participant’s benefits in an individual account, such as 401(k) plans, 403(b) plans, [...

Cash Balance Plan Basics Explained

Posted on January 05, 2009
The January 2009 edition of the Journal of Accountancy has a good general article on cash balance plans. Written by Raymond D. Berry of Grant Thorton LLP in Chicago, Plan Design in the Balance: Weighing the Pros and Cons of Cash Balance Plans provides a general explanation of what a cash balance plan [...

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