The following is a summary of cases for which courts have provided rulings, since last month’s edition of The Speed Reader was published. Walsh vs. Bicallis LLC (decided on September 25 by the U.S. District Court for the District of Maryland): During a 401(k) plan audit, the U.S. Department of Labor (the “DOL”) found that […]
As background, the so-called SECURE 1.0 Act provided that if a part-time employee who is at least 21 completes at least 500 hours of service for three consecutive years, the employee must be allowed to make elective deferrals to his or her employer’s 401(k) plan. The earliest entry date for such employees was January 1, […]
On August 23, the IRS published Private Letter Ruling 202434006 (the “PLR”). The applicant proposed to amend its 401(k) plan (the “401(k) Plan”), retiree health reimbursement arrangement (the “Retiree HRA”), educational assistance program (the “EAP”), and its Health Savings Accounts (“HSAs”) program. More specifically, the applicant proposed to amend those programs to allow eligible employees […]
Cybercriminals’ recent focus on the large amount of assets in retirement plans has properly received much publicity. That focus, and the resulting theft of participants’ retirement plan accounts in several cases, led to a February 11, 2021 report from the Government Accountability Office (“GAO”). In that report, the GAO stated that it “is making two […]
Under a SECURE 2.0 Act of 2022 (“SECURE 2.0”) provision that has garnered a lot of attention, matching contributions can be made with respect to a qualified student loan payment (“QSLP”) in a 401(k) plan, 403(b) plan, SIMPLE IRA plan, or governmental 457(b) plan. A QSLP is a payment made by a participant, his or her […]
As background, IRS Form 5330 (Return of Excise Taxes Related to Employee Benefit Plans) must be filed, and a related excise tax paid with the filing, for various retirement plan compliance issues. By far the most common issue for 401(k) plans in this regard is the late remittance of participants’ contributions and loan repayments to […]
Given the continuing wave of ERISA litigation, this article has become a mainstay of The Speed Reader. A sample of recent cases is provided below. The most common type of ERISA case for approximately the past 18 years involves retirement plan participants’ allegations that plan fiduciaries caused participants to pay excessive recordkeeping and investment fees […]
On Thursday, August 29, I will present at a seminar hosted by HUB International. The seminar will include several speakers, including a senior Department of Labor investigator. My presentation will focus on IRS and Department of Labor guidance issued this year, as well as the current state of ERISA litigation, regarding retirement plans. The seminar […]
On June 20, the IRS published Notice 2024-55 (the “Notice”). The Notice explains SECURE 2.0 provisions regarding emergency personal expense distributions and domestic abuse victim distributions. If applicable requirements are satisfied, as explained in the Notice, the 10 percent penalty tax under section 72(t) of the Internal Revenue Code (the “Code”) does not apply to […]
Given the continuing wave of ERISA litigation, this article has become a mainstay of The Speed Reader. A sample of recent cases is provided below. The most common type of ERISA case for approximately the past 18 years involves retirement plan participants’ allegations that plan fiduciaries caused participants to pay excessive recordkeeping and investment fees […]