For anyone watching the latest in Employee Stock Ownership Plans (ESOP), there has been a lot of legislative action taking place at the federal and state level in recent months. Politicians on both sides have been promoting ESOPs as a way to increase economic growth and opportunity for employees ...
The National Taxpayer Advocate (NTA) is an independent organization within the IRS that was established to ensure fair treatment for taxpayers and help taxpayers understand their rights. The NTAs inaugural edition of the Purple Book contains recommendations for tax law and policy to “strengthen ...
San Diego has become a center of craft brewing. With more than 150 breweries, San Diego has been called the Craft Beer Capital of America. This includes some of the countrys first craft breweries like Karl Strauss and Pizza Port, as well as some of the largest and most popular beer brands like B...
Most pension plans offer defined benefits for participants at the time they retire. However, over time, many plan participants move multiple times for a new job or to downsize in retirement. This can leave the pension plan without the current contact information for plan participants and leave in...
With the new Department of Labor fiduciary rules further pushed back to go into effect on January 1, 2019, plan fiduciaries have more time to review employee benefit plan best practices. Employee benefit plan best practices include a review of who is involved in what role, the plan administrator...
With each New Year comes the inevitable changes to employee benefits that affect plan sponsors, administrators, and participants. These changes can involve adjustments to the individual plan benefits, plan eligibility, and new state and federal laws. Employers and plan administrators should revie...
By Paul D. Woodard, Esq. Contributing Author: Kristine M. Custodio, Advanced Certified Paralegal Following are the Department of Labors penalties as they relate to ERISA violations pursuant to the Federal Civil Penalties Inflation Adjustment Act Annual Adjustments for 2018, which became effe...
Many defense contractors are turning towards employee-ownership as a way take advantage of tax savings and reward employees by giving them a stake in the company they work for. Specifically, many defense contractors are utilizing employee stock ownership Plans (ESOPs) as a way to provide owners w...
Employers involved in an ERISA dispute can face a long road of litigation, and the time and expenses that go along with it. Many ERISA claims filed by former employees have a very low chance of success but that does not eliminate the need for the employer to put in the time and money to fight the...
The unemployment rate across the country remains low, dropping to 3.7% in San Diego County in October. This low unemployment rate has made it difficult for many employers to find the workers they need to keep their businesses growing. Employers who are unable to compete with higher salary offers ...
There are a number of benefits to setting up an employee retirement plan for both employers and employees. This includes the ability to attract top talent and incentivize current employees to stay with the company to maximize their benefits. However, one of the most compelling reasons employers s...
Some employers dread mediation because it is the first time they have to come face-to-face with a disgruntled employee. An employee may use this meeting as a chance to unload all of their complaints of how they were mistreated, rather than focus on the ultimate issue of a possible ERISA violation...
Many types of businesses are turning towards employee ownership as a succession planning tool and as a way to incentivize employees. Industries that can benefit from employee ownership plans include architecture and design firms, construction companies, and defense contractors, among others. Whil...
Employee Stock Ownership Plans (ESOP) provide a unique business ownership structure that allows employees to have a stake in the company they work for. ESOPs offer additional benefits for the overall success of the company, as well as for the owners selling shares in the company. Certain types of...
An Employee Stock Ownership Plan (ESOP) is a qualified defined contribution retirement plan that primarily invests in common company stock. These shares are held in an ESOP trust until the employee leaves the company or retires. At that point, the shares are bought back by the company. Many clos...
In general, Employee stock ownership plans (ESOPs) can be a benefit to owners, employees, and the company overall. ESOPs provide a unique way for employees to gain an ownership interest in their company and set aside retirement savings. However, ESOPs can also present some problems and complicati...
Department of Labor (DOL) investigations into fiduciary breaches in ESOPs can result in significant civil liability, penalties, and even possible criminal charges. The majority of these investigations are triggered by civil lawsuits, whistleblowers, or participant complaints, but a small handful ...
A 403(b) plan derives its name from the Internal Revenue Code (IRC) Section 403. 403(b) plans are generally only available for certain employees of public schools, employees of cooperative hospital service organizations, employees of 501(c)(3) organizations, and certain ministers. A 403(b) retire...
The proposed implementation of changes in the Best Interest Contract Exemption and fiduciary rules will be further delayed until January 1, 2019. Previously, the transition period extended from June 9, 2017, to January 1, 2018. According to the Department of Labor, the extended delay will give th...
Many businesses put a lot of time and effort into initially setting up company retirement plans. Unfortunately, they do not regularly revisit the plans to ensure they are staying in compliance with ERISA and federal regulations, or do not take into account governmental policy changes. A Departmen...
The IRS Voluntary Correction Program allows companies to correct mistakes with their retirement plan before they face an audit. Compliance can allow the plan to maintain tax-favored status and avoid costly penalties. The IRS has published the “Top Ten Failures Found in Voluntary Correction Progra...
When most plan participants think about security involving their retirement plan, they are typically thinking along the lines of financial security and how their investments perform. However, like other financial institutions, retirement accounts are subject to cyber threats that could threaten u...
In April of 2017, the ERISA Advisory Council on Employee Welfare and Pension Benefit Plans announced a review of ERISAs required disclosures and notices. The Council sought input from stakeholders on a number of topics, in part, to determine if current ERISA requirements should be amended or mod...
A 403(b) plan is named after the Internal Revenue Code (IRC) Section 403, which details the plan. Essentially, a 403(b) plan is a retirement plan that allows employees to make contributions on a pre-tax basis, similar to a 401(k) plan. 403(b) plans sponsored by governmental and public education e...
Check out my article published in the September/October 2017 edition of NALA's Facts & Findings magazine!