Use of 401(k) Plan Forfeitures Continues to be Scrutinized in Litigation

A series of lawsuits have challenged how plan sponsors have used plan forfeitures to reduce employer contributions. In this interview, Carol Buckmann discusses the issues

In Defense of the 401(k) Plan

Critics have called the 401(k) plan a “failed experiment” and maintain that it does not provide retirement security to low and middle income employees. Does the 401(k) plan really deserve a failing grade? Recent developments suggest otherwise.

Qualified Retirement Plan, SECURE 2.0Carol BuckmannMay 27, 2024401k

Who Owns Plan Forfeitures? New Cases Challenge IRS Guidance

401(k) sponsors routinely use forfeitures to reduce employer contributions. New lawsuits say this is an ERISA violation. Who will win?.

How Self-Auditing the Retirement Plan Prevents Compliance Issues Down the Line

The Department of Labor found many violations in retirement plan audits last year, likely because plan sponsors were not regularly self-auditing plan operations.

Firm News, Qualified Retirement PlanSandra CohenMay 9, 2024

Who’s a Fiduciary? First Challenge of the DOL Investment Advice Fiduciary Final Rule

Investment Advisers who advise IRAs and pensions have increased risk of being a “fiduciary” under this final rule.

Is Your Plan Cyber-Secure? Fiduciaries and Vendors Face Ongoing Challenges

Plan fiduciaries need to secure in-house data and investigate their outside vendors’ procedures.

Texas Court Won’t Dismiss ESG Challenge-What Does This Mean for 401(k) Plans?

Carol Buckmann was quoted in this Bloomberg Law article analyzing the Texas federal district court decision in Spence v. American Airlines, Inc. and American Airlines Employee Benefits Committee refusing to dismiss the case. She discussed defects in the case that would most likely have resulted in dismissal of this politically-motivated lawsuit in another court.

Fiduciary Advice, Qualified Retirement PlanSandra CohenFebruary 26, 2024ESG, Americanairlines

The Do’s and Don’ts for Setting Up Emergency Savings Accounts

SECURE 2.0 allows non-highly compensated employees to contribute to emergency savings accounts. The IRS and the Department of Labor have now issued guidance clarifying the rules.

Could Have, or Would Have, that is the ERISA Question

Plaintiffs want a retrial to change a jury’s determination that there were no damages from a fiduciary breach involving Yale’s retirement plan. The DOL supports them. Which standard applies?.

Fiduciary Advice, Qualified Retirement PlanJeff MamorskyJanuary 14, 2024ERISA, litigation, damages

Mandatory Auto-Enrollment is Coming for Some Plans-What to Know

Most new plans will be required to have auto-enrollment and auto-escalation beginning in 2025. The “grab bag” guidance in Notice 2024-02 addresses how this requirement will be applied to mergers and spinoffs, but leaves other basic questions unanswered.

New Guidance Fills in the Blanks for Roth Employer Contributions

Clarification of the rules for electing Roth employer contributions should spur more plan sponsors and vendors to consider allowing them.

A Benefits Wish List for 2024

Here are some developments that could change things for the better in 2024.

Fiduciary Advice, SECURE 2.0, Qualified Retirement PlanCarol BuckmannDecember 17, 2023ERISA, secure2.0, fiduciaryduty

Hidden Advisor Fees: Ninth Circuit and DOL Let the Sunshine In

The fiduciary responsibility to review the reasonableness of plan compensation extends to indirect compensation. Failure to do so can result in a non-exempt prohibited transaction.

The Long Arm of ERISA Falls Short-How A Foreign Affiliate Escaped Liability

All members of a controlled group are liable under ERISA for plan termination and withdrawal liability, but in practice, it isn’t easy to get jurisdiction over foreign members.