By Porter Wright on In a recent blog, we discussed a case that challenges the constitutionality of the Defense of Marriage Act ("DOMA"), which defines marriage for federal law purposes as a legal union between a man and a woman. DOMA was enacted during the administration of President Bill Clinton. Presuming DOMA is deemed constitutional by the courts and is not repealed by Congress (a possibility that appears remote at this point in time), employers theoretically could comply with federal employee benefits laws contained in ERISA by adopting (or maintaining) the DOMA definition of spouse. … Continue Reading
By Porter Wright on Phyllis Borzi, Assistant Secretary of the Employee Benefits Security Administration ("EBSA") and one of the founding members of the Worldwide Employee Benefits Network ("WEB") paid a visit to WEB's Cleveland Chapter yesterday. One of the issues she addressed was the status of the retirement plan service provider disclosure regulations. … Continue Reading
By Porter Wright on It was great to see everyone who was able to attend our Employment Relations seminar in Columbus yesterday—”Strategies to Help You Build a Winning Team.” We thought we would share one of the questions that was asked: is it necessary to seek requests for proposal (“RFPs”) for a 401(k) plan on a certain schedule? This … Continue Reading
By Porter Wright on The Internal Revenue Service ("IRS") recently announced cost of living adjustments affecting retirement plans. These new limitations are effective for tax year 2012. Many, but not all, applicable dollar limitations will increase. For this purpose, the IRS uses an adjustment process that is similar to the process used to adjust Social Security benefits (which also will increase effective in 2012).… Continue Reading
By Porter Wright on Are you considering taking an early distribution from your retirement plan? If so, now is a good time to brush up on the early distribution rules. In Tax Tip 2011-42 (available here), the IRS reminds you of the tax impact of taking a withdrawal from your retirement plan before you reach age 59 ½. Early … Continue Reading
By Porter Wright on Are any of your employees residents of Puerto Rico? If yes, you may need to consider whether your retirement benefits are complying with recent developments regarding both the Puerto Rican Internal Revenue Code (“PR Code”) and the United States Internal Revenue Code (“US Code”). If you are maintaining any Puerto Rican retirement plans, you will … Continue Reading
By Porter Wright on We often are asked why plan amendment procedures vary from plan to plan, and why it is important to follow those procedures—however written. Sometimes there are unique reasons for the specified procedures, but very possibly the answer goes back to the 1990’s and a case called Curtiss-Wright Corp. v. Schoonejongen, which took us on an … Continue Reading
By Porter Wright on On Monday, August 8, 2011, United States Bankruptcy Court Judge Mary Walrath ruled that Harry & David Holdings Inc. the Oregon-based gourmet food and gift company, can terminate its pension plan as part of a pre-arranged bankruptcy plan and emerge from bankruptcy free of its accumulated pension liability. The company convinced the court that it … Continue Reading
By Porter Wright on Are we having fun yet? The political scene in Washington, D.C. recently has lurched from an unsavory and perhaps a bit embarrassing battle over the federal debt ceiling to a cautious and uncertain reaction to the recent ratings downgrade of our country. On Friday, August 5, 2011, Standard & Poor’s (“S&P”) announced the reduction of … Continue Reading
By Porter Wright on Most Americans (other than those focused solely on the resolution of the NFL lockout) have taken notice of the partisan scramble going on here in Washington these days over the debt ceiling limit and our seemingly out-of-control federal deficit. As I write this, partisan bickering and veto threats are the order of the day—even as … Continue Reading
By Porter Wright on We are often asked — if the court issues an order, or the IRS issues a notice of levy — regarding a participant’s retirement plan benefits, I have to pay the money out, right? No, this is one of those situations where you don’t just hand over the lunch money because the other guy is bigger … Continue Reading
By Rich Helmreich on The tax code provides various dollar limitations on benefits, contributions, compensation under employee benefit plans. IRS Cost-of-Living Adjustments contains these dollar limitations for as modified by the IRS for cost-of-living adjustments (COLAs) for 2011.… Continue Reading
By Greg Daugherty on Section 403(b) plans were historically important for tax-exempt employers, but under current tax laws, maintaining a 403(b) plan may no longer be viable or advisable for an employer. An employer that wants to pull out the 403(b) plan termination roadmap first needs to ask a basic question: can I get the engine started (will the … Continue Reading
