June 5, 2019

House Passes the SECURE Act Which Moves to Senate, Would Affect 401(k) Plans in Big Ways

On Thursday, May 23, 2019, the U.S. House of Representatives passed, by a huge 417 to 3 margin, the Setting Every Community Up for Retirement Enhancement Act (the “SECURE Act”). Although the current climate in Washington is unpredictable at best and because the SECURE Act enjoys wide bipartisan support, pundits forecast that the proposal stands… Continue Reading

May 3, 2019

IRS Revises EPCRS Guidance, Expands Corrections Available Under Self-Correction Program

On April 19, 2019, the Internal Revenue Service (“IRS”) issued Revenue Procedure (“Rev. Proc.”) 2019-19 –the most recent comprehensive official guidance to the IRS’s Employee Plans Compliance Resolution System (“EPCRS”). EPCRS generally permits 401(k) plan sponsors to correct certain operational and other plan mistakes or failures, thereby continuing to provide employees with retirement benefits on… Continue Reading

April 1, 2019

DOL Proposed Regulations on Overtime Exemption Could Increase 401(k) Plan Contributions

On March 22, 2019, the U.S. Department of Labor (“DOL”) issued proposed regulations that, if adopted in proposed form, would substantially increase compensation thresholds used to determine whether executive, administrative, and professional employees must be paid overtime.  The DOL has provided an explanatory fact sheet, available here. Specifically, the proposed regulations would: Increase the standard salary… Continue Reading

February 28, 2019

Fidelity Sued Over “Secret Payments” in New Class Action

In a class-action lawsuit suit filed on February 21, 2019, in the U.S. District of Massachusetts, participants in a T-Mobile USA 401(k) plan sued the parent company of Fidelity investments, along with several FMR affiliates, alleging violations of ERISA’s fiduciary standards.  Plaintiffs allege that Fidelity, as record keeper for the plan, accepted “secret payments” from… Continue Reading

February 4, 2019

Updated Penalty Amounts for ERISA 401(K) and Welfare Plans

On January 23, 2019, the DOL published annual adjustments to the civil monetary penalties for certain ERISA violations applicable to 401(k) plans. Legislation enacted in 2015 requires these adjustments to be issued by January 15 of each year, but the government shutdown prevented the DOL from meeting the statutory deadline this year*. Updated penalty amounts for… Continue Reading

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