Labor & Employment Law, Tax Law, Finance & Banking

401(k) Plans Are Just A Tool To Save, They’re Not Evil

by Ary Rosenbaum on 5/22/2013

Years ago B.K. (before kids), I took weekly golf lessons. While it never showed on the golf course, I was developing a nice game. I took lessons with a curmudgeon golf pro named Kenny and the lessons were at a golf store....more

HM Revenue & Customs Consultation Document Poses Significant Tax Challenges for Investment Management LLPs

by David Gubbay, Daniel Hawthorne, Mark Stapleton | Dechert LLP on 5/21/2013

On 20th May, HMRC published a consultation document which proposes major changes to the taxation of partnerships in the UK. The consultation is particularly relevant to investment management LLPs – and especially to those...more

Insights - Spring 2013: Developing Federal Common Law of Successor Liability

by Regina Joseph | Shumaker, Loop & Kendrick, LLP on 5/17/2013

When a purchaser acquires substantially all the assets of a seller, the purchase agreement typically provides that the purchaser does not assume seller’s liabilities except to the limited extent specifically set forth...more

Be Careful If ROBS Is Your Business Financing Strategy

by Angela Bohmann | Leonard, Street and Deinard - Employee... on 5/16/2013

Various promoters have suggested to entrepreneurs that they use the assets in their 401(k) plans or IRAs to finance a new business. These programs are sometimes known by the acronym ROBS, or Rollovers as Business Start-ups....more

Why Retirement Plan Sponsors are Always on the Hook for Liability

by Ary Rosenbaum on 5/14/2013

Whoever said the road to hell is paved with good intentions might have been a retirement plan sponsor. While setting up a retirement plan is a good intention, a plan sponsor’s lack of diligence in reviewing what is going on...more

Nonresident Employee Avoids New York Taxes On Deferred Compensation Payment

by Angela Bohmann | Leonard, Street and Deinard - Employee... on 5/13/2013

A taxpayer we will call John worked for a savings bank in New York that was acquired by Washington Mutual Bank. John participated in the New York bank’s supplemental executive retirement plan (SERP) and its deferred...more

Lump-Sum Payments From Nonqualified Deferred Compensation Plans To Nonresident of New York Are Exempt From New York Income Tax

by Mark Hamilton | White & Case LLP on 5/10/2013

A recent advisory opinion from the New York State Department of Taxation and Finance concludes that payments received by an individual nonresident of New York in settlement of his benefits under two nonqualified deferred...more

Under The Dome: Inside The Maine State House 5-3-13

by Avery T. Day, John D. Delahanty, Andrea Cianchette Maker | Pierce Atwood LLP on 5/8/2013

In This Issue: Legislature Enters Final Stretch; Appropriators Receive Bad News Regarding Revenue Forecast; Tax Reform Proposal Officially Rolled Out; Major Initiatives of the Governor Topic of Debate... ...more

Recent 403(b) Developments

by King & Spalding on 5/8/2013

Background - 403(b) retirement plans are similar to 401(k) plans, but the employers who may establish 403(b) plans are limited to public schools, certain tax exempt employers (including religious and charitable...more

May and June Filing and Notice Deadlines for Qualified Retirement and Health and Welfare Plans

by King & Spalding on 5/7/2013

Employers and plan sponsors must comply with numerous filing and notice deadlines for their retirement and health and welfare plans. Failure to comply with these deadlines can result in costly penalties and excise taxes. To...more

“Stuff” Every 401(k) Plan Sponsor Must Keep

by Ary Rosenbaum on 5/7/2013

George Carlin said that all you need in life is a place for your stuff. Carlin said that all a house really is; is a place for your stuff. When it comes to being a retirement plan sponsor, retirement plan sponsors need a...more

Carrying on Business in Canada

by Heenan Blaikie LLP on 5/3/2013

In This Publication: - Preface - General Information - Immigration - Investment Factors - Intellectual Property - Principal Forms of Business Entities - Taxation -...more

How 401(k) Plan Sponsors Can Improve Their Odds In “The Retirement Gamble”

by Ary Rosenbaum on 5/3/2013

PBS’ Frontline had a scathing report on 401(k) plans called “The Retirement Gamble”. The Retirement Gamble had no roulette tables or free drinks; it was a rather sobering look at the troubles affecting 401(k) plan and...more

Recent IRS Guidance Concerning 403(b) Plans

by Lisa Berkowitz Herrnson | Proskauer - Not for Profit/Exempt... on 5/1/2013

Final Internal Revenue Code Section 403(b) regulations which became effective January 1, 2009 require that plan sponsors adopt written 403(b) Plan documents. ...more

Legal Alert: President's 2014 Budget Includes Employee Benefits Proposals

by Adam Cohen, Carol McClarnon, Alice Murtos, Joanna Myers, Vanessa Scott, W. Mark Smith, William Walderman, Carol Weiser | Sutherland Asbill & Brennan LLP on 5/1/2013

On April 10, 2013, the White House released its Fiscal Year 2014 Budget (the Budget), which includes a number of proposals related to employee benefit plans. Although it is unlikely that all of the proposals will ultimately...more

“Rookie” Mistakes Every Retirement Plan Provider Should Avoid

by Ary Rosenbaum on 4/30/2013

Whether you like it or not, first impressions mean the most. If you fail to make a good impression the first time out, many times you never get a chance to make a second impression. Some times that bad impression is because...more

Compensation and Unrelated Business Income are Focus of IRS Colleges and Universities Report

by Ropes & Gray LLP on 4/29/2013

Just a few weeks before many tax-exempt organizations file their annual Form 990, the IRS yesterday released its final report on the Colleges and Universities Compliance Project, which it had initiated in 2008 by sending...more

What Every Private Equity Fund Manager Should Know About ERISA

by The R. Bernard Law Group on 4/26/2013

What is ERISA? The Employee Retirement Income Security Act of 1974 (“ERISA”) protects the interests of employee benefit plan participants by establishing strict standards of conduct for “plan fiduciaries” – i.e.,...more

Say "Goodbye" to Your 401(K) Plan as You Know It?

by Baker, Donelson, Bearman, Caldwell &... on 4/24/2013

From time to time, we hear about threats to the Social Security System – even talk about eliminating it for younger workers. Some reports indicate that about half of Americans have less than $10,000 in savings, while other...more

How an Employer Can Improve Their 401(k) Plan At Little Or No Cost

by Ary Rosenbaum on 4/23/2013

Sometimes you can just rejuvenate something without have to replace it. A nice new tie can breathe life into an older suit. Instead of new kitchen cabinets, resurfacing is an option. Sanding and staining can add luster to a...more

A Cautionary Tale Under Code § 409A: Case Evidences IRS' Willingness To Seek 409A Penalties For Discount Options

by Janet Lowder | Womble Carlyle Sandridge & Rice, PLLC on 4/22/2013

The United States Court of Federal Claims recently issued an opinion confirming that § 409A of the Internal Revenue Code of 1986 applies in the context of discount stock options. The case, Sutardja v. United States, is one of...more

Modification of Roth In-Plan Conversion Rules Provides Participants Greater Flexibility

by John Boyd, Deborah Bracy | BakerHostetler on 4/19/2013

Tucked in the provisions of the year-end financial cliff legislation (the "American Taxpayer Relief Act of 2012") was a provision which creates greater flexibility in the conversion of qualified plan dollars to tax-free...more

403(b) Plans – Correction Of Plan Errors

by Lisa Berkowitz Herrnson | Proskauer - ERISA Practice Center on 4/18/2013

Final Internal Revenue Code Section 403(b) regulations issued December 31, 2009 require that plan sponsors adopt written 403(b) Plan documents. A 403(b) Plan is a form of defined contribution retirement plan that may only be...more

New Opinion and Advisory Program for Pre-Approved 403(b) Plans

by Robert Abramowitz, Amy Kelly, R. Randall Tracht | Morgan Lewis on 4/18/2013

The IRS releases new procedures and sample plan language to assist 403(b) plan sponsors in obtaining pre-approval of 403(b) plan documents and to ensure documentary compliance with 403(b) requirements....more

IRS Establishes Pre-Approved Plan Program For 403(B) Plans