Minor Loses Battle over 401(k) Distribution Taxes
A federal court upheld a lower court ruling that the child of a woman who pleaded guilty to killing the child’s father is liable for federal income tax...
Compliance
Calif. Bank Hit with Stock-Drop Suit
FirstFed Financial Corp. employees have filed a stock-drop suit alleging the bank kept company stock in its employee-stock ownership plan (ESOP) after it was no longer prudent to...
IRS Provides Guidance on Pre-Approved IRAs
In Revenue Procedure 2010-48, the Internal Revenue Service (IRS) provides guidance to drafters and users of pre-approved IRAs.
IRS: No Mandatory Withholding for In-plan Roth Rollovers
Plan sponsors who are allowing direct Roth rollovers from 401(k) and 403(b) plans don’t have to worry about mandatory withholding for those “distributions.”
SEC Proposes New Rules for Advisers
The Securities and Exchange Commission (SEC) has voted to propose new rules to “strengthen the SEC's oversight of investment advisers and fill key gaps in the regulatory landscape”.
GAO Warns Lawmakers about Retirement Age Increases
Government auditors warned Congress that boosting the Social Security retirement age would harm poor and minority Americans as well as raise disability claims from older disabled people who...
Employee Stock Reporting Deadlines Approaching
The Internal Revenue Service (IRS) released final versions of Form 3921 and 3922 on which employers are required to report information relating to incentive stock options (ISO) and...
Senators File Brief in Health Reform Challenge
Senate Minority Leader Mitch McConnell (R-Kentucky) and 32 other GOP senators filed a brief on Thursday in favor of a court case challenging health care reform.
SEC OKs Hedge Fund, Private Equity Disclosure Mandate
The Securities and Exchange Commission (SEC) approved a rule that mandates hedge fund and private equity managers to register with the agency and be subject to unannounced examinations.
Savings Plan Embezzler Indicted
A federal indictment unsealed this week in the District of Minnesota alleges that a 62-year-old New Prague, Minnesota man embezzled approximately $642,166 from his company’s employee benefit...
Widow Loses SERP Benefits Bid
The widow of a participant in Diebold Inc.'s supplemental executive retirement plan (SERP) did not meet the plan’s definition of “spouse,” so she was not entitled to her...
BofA Settles Gender Discrimination Suit
There has reportedly been a settlement reached in a lawsuit alleging that the bank’s Merrill Lynch unit discriminated against women,
EBSA Cracking Down on Contribution Fraud
The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) announced a series of enforcement actions to protect more than $7 million for workers in retirement plans or...
Morgan to Pay Merrill Nearly $1M
Merrill Lynch had accused Morgan Stanley of poaching a team of its brokers–a team that had handled $215 million in client assets.
Diebold Agrees to Stock Drop Suit Settlement
A settlement of $4.5 million has been preliminarily approved by a federal court in a consolidated class action lawsuit against Diebold, Incorporated.
Dodd Defends His Bill
Speaking at the Security Industry and Financial Markets Association’s (SIFMA) annual meeting earlier this week, Senator Chris Dodd (D-Connecticut) attempted to explain the Dodd-Frank act to a skeptical...
Court Forgives Use of Prior Year Stock Valuation for Plan Distributions
The U.S. District Court for the Southern District of New York ruled in favor of an employer sued for its use of a year-old stock valuation when making...
ASPPA Says Deficit Reduction Proposal Would Eliminate 401(k)s
A retirement industry trade group says that a proposal in the Deficit Reduction Commission Proposals could eliminate 401(k) plans.
DoL Blasts 9th Circuit for Prudence Presumption Endorsement
Lawyers representing Labor Secretary Hilda L. Solis have asked the 9th Circuit to overturn a three-judge panel's decision embracing the “presumption of prudence” standard often seen in employer...