401k Lawsuits A Big Business for Large and Small Law Firms

July 17, 2017

According to the Groom Law Group, 90 401k lawsuits focused on defined contribution plans have been filed since 2006, highlighted by the $140 million settlement paid by Nationwide (see top 10 defined contribution lawsuit settlements and awards). 401k lawsuits and ...

401k Record Keepers Interpret DOL Fiduciary Rule Differently

June 13, 2017

For many 401k and 403b plan sponsors, the real question is how and when the DOL fiduciary rule will affect them. Though it will not affect them dramatically, it will alter their relationships with their record keeper and advisor. According to ...

DOL Participant Disclosure Regulation, What is a Plan Sponsor’s Responsibility?

May 24, 2017

The Department of Labor’s Participant Disclosure Regulation (“Regulation”) places a heavy administrative burden on retirement plan administrators which is designed to provide extensive information to plan participants in order to help them understand important aspects of managing their accounts. ...

State Auto IRA Plans May Limp Forward Despite Losing ERISA Exemption

May 18, 2017

State auto IRA plans will in all likelihood not be exempt from ERISA as Obama-era safe harbor exemptions for those plans have all but been rescinded by the Congress and President Trump has vowed to sign the legislation into ...

Duke 403b Lawsuit to Proceed Judge Rules

May 17, 2017

A federal judge issued a mixed ruling on Duke University’s request to dismiss a lawsuit that claims its 403b retirement plan charged employees excessive fees and made poor investments. In a key decision for colleges and universities defending themselves against 403b lawsuits, ...

The DOL Fiduciary Rule May Be Doomed as Lawmakers Prepare to Scuttle its Implementation

May 15, 2017

When the Obama Administration sought to side-step Congressional approval and empowered the Department of Labor (DOL) to enforce what is now referred to as the DOL Fiduciary Rule, it may have sealed the fate of this controversial plan. Now that ...

Is a Roth 401k Likely to Replace Traditional 401k Plans in a Trump Tax Overhaul? Not Likely

May 15, 2017

A Roth 401k is an employer-sponsored investment savings account that is funded with employee contributions using after-tax money up to the contribution limit of the plan. This type of investment account is well-suited to people who think they will be in a higher tax bracket in ...

401k Tax Cuts Expected in Trump’s Budget Plan

May 3, 2017

What is the fate of 401k tax cuts? Pending the Trump Administration tax proposals and the President’s new tax plan, most industry professionals are taking a measured view in assessing the impact on 401k plans. Predicting a major cut in 401k plan ...

Hardship Distributions from 401k Plans Addressed by IRS Working Paper

April 30, 2017

The US Internal Revenue Service (IRS) has issued new guidelines for substantiating hardship distributions from 401k plans, referred to as Employee Plans (EP). The memorandum from the Treasury Department “sets forth substantiation guidelines for EP examinations. Employees examining whether a section ...

A Guide to 401k Fees and Fee-Related Liabilities for Retirement Plans