A D.C. federal court judge dismissed a 401(k) provider’s lawsuit challenging the U.S. Department of Labor’s (DOL) guidance concerning cryptocurrency investments. In his ruling, the judge found that DOL guidance was not subject to judicial review, and the 401(k) provider lacked standing to file suit. However, the judge also found that the relief the 401(k) provider requested, or invalidation of the DOL guidance and an Read More

The Internal Revenue Service (IRS) has issued Notice 2023-62, which gives guidance on Section 603 of the SECURE 2.0 Act concerning catch-up contributions. The Notice delays the requirement in Section 603 for highly compensated individuals to make catch-up contributions on a Roth basis – with no pre-tax option – to qualified retirement plans effective January 1, 2024. Instead, the Notice establishes a two-year Read More

The Internal Revenue Service (IRS) has released 2024 indexing adjustments to the Affordable Care Act (ACA) percentages. These percentages are critical to coverage under the ACA. As a result, large employers should pay close attention to these adjustments because failing to offer affordable coverage as defined under the ACA could result in costly employer-shared responsibility penalties. Under the ACA, the required Read More

As a company conducts due diligence as part of its plans to acquire a U.S. company, it should review the executive compensation of the company being acquired. This review not only allows a better understanding of the compensation structure but may uncover any liabilities or compliance issues that might affect the purchase price in the transaction. Compensation information is necessary to properly draft appropriate Read More

In a unanimous decision, the U.S. Court of Appeals for the Eleventh Circuit upheld a lower court’s decision denying a severance package for Bryan Rhode, a former CSX executive. Like the lower court, the appellate rejected the plan participant’s allegations that a conflict of interest and a flawed investigation by a plan administrator led to the rejection of his claim. The case is Bryan Rhode v. CSX Transportation Read More

The U.S. Court of Appeals recently revived a lawsuit against AT&T Services Inc. and its retirement plan fiduciaries after a district court had granted summary judgment in favor of the telecommunications giant. The published decision, binding in the Ninth Circuit, focused on indirect fees received by service plan providers. This issue potentially subjects retirement plan fiduciaries to legal attacks they have not Read More

Internal Revenue Code (IRC) Section 457 details tax consequences for deferred compensation retirement plans for tax-exempt organizations (EOs) and state and local government entities (S&L plans). Plans that meet certain eligibility requirements under Section 457(b) have deferred tax benefits, and those that fail to meet these requirements are subject to tax consequences under Section 457(f). Here are some common Read More

The Internal Revenue Service (IRS) issued IR-2023-144 (“IRS Notice”) on August 29, 2023, which concerns Employee Stock Ownership Plans (ESOPs). These plans allow employees to accrue ownership of company stock over time. The IRS Notice warns employers who sponsor ESOPs to be wary of the many compliance rules that these plans involve. In particular, the IRS expresses concern in its Notice that some ESOP transactions Read More

A recent Tenth Circuit decision invalidating portions of an Oklahoma law regulating pharmacy benefit managers (PBMs) based on preemption could negatively affect similar laws in other states. The appellate court found that the Employee Retirement Income Security Administration (ERISA) and Medicare Part D preempted the challenged provisions of the PBM law. In its decision, the Tenth Circuit also explicitly acknowledged Read More

The U.S. Court of Appeals for the Tenth Circuit recently overturned portions of Oklahoma’s Patient’s Right to Pharmacy Choice Act, a state law regulating pharmacy benefit managers (PBMs), who serve as intermediaries between pharmacies, insurance companies, and drug companies. A three-judge panel reversed a federal district court judge’s April 2022 ruling in finding that the Act’s restrictions on network access and Read More