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By Lisa K Loesel. Loans against a qualified retirement plan can go wrong in a variety of ways, exposing employers and workers to taxes and penalties. But employers and workers can avoid trouble if they remain aware of key factors to prevent the worst from happening. And even if potential violations occur, there are ways […]
Advance copies of the 2011 Form 5500 annual return/report and related instructions are now available for your viewing pleasure — the issuing federal agencies note the forms are for “informational purposes” only, so don’t use them to get a head start on your filing responsibilities. The advance copies were jointly issued by the U.S. Department […]
With the year’s end fast approaching, employers that sponsor tax-qualified retirement plans should assess whether they may require amendments or administrative changes. To help with that process, Todd A. Solomon, a partner in the Employee Benefits Practice Group of McDermott Will & Emery’s Chicago office, and Brian J. Tiemann, also a member of that office, […]
The IRS and Treasury Department want to “initiate a dialogue” with the governmental plan community about how to better define when a retirement plan becomes a government plan, but while dialogue is good, will it result in burdensome regulatory requirements? On Nov. 8, the IRS and Treasury Department issued proposed rules on determining governmental plan […]
Concerns about the implementation of participant fee disclosure rules did not just rest within the retirement plan community – the Department of Labor (DOL) itself raised red flags about how the rules would interact with a formatting requirement under Securities and Exchange Commission (SEC) rules. But we recently got word from DOL that the SEC […]
Retirement plan investors will save between $5 billion and $13 billion annually, thanks to new exceptions to DOL’s prohibited transaction rules, DOL estimates. The DOL’s Employee Benefits Security Administration (EBSA) opened the door to allowing fiduciaries to offer investment advice in a final rule published to become effective Dec. 27, 2011. DOL estimates this new rule […]
Starting 2012, savers can sock away $17,000 per year in a 401(k) retirement plan without paying upfront taxes, up from $16,500 in 2010. This increase applies to all 401(k) and 403(b) plans, most 457 plans and the federal government’s Thrift Savings Plan. The last time the IRS raised this elective deferral (contribution) limit was in […]
Federal courts on numerous occasions in the last two years have dismissed plan participant allegations that their employers charged excessive retirement plan fees. The rulings taken together say: If a plan is not enriching itself at participants’ expense — or operating with a conflict of interest in relation to its investment company — then it’s […]
Employers and plan administrators that have a hard time choosing the version of the Form 5500 to file for earlier plan years, and which schedules to file, now have some help. That assistance comes from none other than the Department of Labor (DOL) — one of the agencies that imposes the filing requirement in the first […]
It’s important to disclose information through ERISA-required documents properly: it can be a plan administrator’s last line of defense if participants allege that they suffered losses because they didn’t know their rights or important plan terms. That obligation has grown in response to the financial scandals of the last decade (Enron, WorldCom, mortgage-leveraged bonds, etc.). […]