Tag Archives: Defined Contribution Plans

Recent Case Illustrates Importance of Careful Plan Drafting

by Seth Safra and Jonathan Goldberg A recent appellate court decision, Cottillion v. United Refining Co. et al. (3d Cir. Mar. 18, 2015), is a good reminder of the high cost that a drafting error can have for a plan’s sponsor.  Although courts have recognized a “scrivener’s error” doctrine, the bar for establishing a scrivener’s error … Continue Reading

IRS Issues Warning on Documentation Requirements for 401(k) Plans

A recent post in the IRS’s Employee Plans News has two important tips for employers who sponsor 401(k) and similar plans: The plan sponsor is ultimately responsible for maintaining records that document compliance with tax-qualification requirements. Many employers rely on third-party administrators to maintain records of day-to-day transactions, such as loans, hardship withdrawals and distributions. … Continue Reading

Supreme Court Ruling on Agency Flip-Flopping Affects Rules for Benefit Plans

A recent Supreme Court decision, Perez v. Mortgage Bankers Ass’n, highlights two important points about the authority of the U.S. Department of Labor, IRS, and other administrative agencies to interpret rules: U.S. courts will generally follow administrative interpretations of statutes and an agency’s regulations, except in rare circumstances. This deference extends to “sub-regulatory” guidance, like … Continue Reading
LexBlog