Compliance

Supreme Court Considers Whether Trusts can Deduct Fees for Investment Advice

A case before the Supreme Court questions whether fees for investment advice incurred by a trust are deductible under an Internal Revenue Code provision governing costs paid in connection with the administration of a trust that "would not have been incurred if the property were not held by a trust or estate."

DoL to Sponsor Free PPA Webcast

Those looking for some insights on the Pension Protection Act can now get some straight from the 'horse’s mouth.'

IRS Publishes Taxable Wage Base for 2008

The Internal Revenue Service has issued Revenue Ruling 2007-71, providing the table of covered compensation for the 2008 year for use in determining contributions to defined benefit plans and permitted disparity.

DoL Proposes New Asset Types Allowed in Plan Settlements

The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) has proposed an amendment to an existing class exemption stipulating what categories of assets plans can accept to settle litigation.

Morgan Stanley Sued for Allowing Banned Broker to Trade

A lawsuit filed against Morgan Stanley claims that, although the Securities and Exchange Commission (SEC) barred an adviser from trading over-the-counter securities in the 1980s, Morgan Stanley's predecessor Dean Witter incorrectly told her in 1995 that the ban had been lifted.

SEC Reconsidering Terrorist Tracking Tools

The Securities and Exchange Commission (SEC) is trying to decide if it can – or should - help investors be more aware of business ties with terrorists.

DoL Announces Changes to 2009 Form 5500

The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), the Internal Revenue Service, and the Pension Benefit Guaranty Corp. (PBGC) announced the publication of revisions to the Form 5500 annual return/report for plan year 2009.

Principal Settles with Nutmeg State on Commission Charges

The Principal Financial Group has come to terms with the state of Connecticut in connection with the sale of certain Single Premium Group Annuity and Single Premium Guaranteed Immediate Annuity (SPGA) contracts.

DoL Working on Clarifications of QDIA Regs

Although the final Qualified Default Investment Alternatives (QDIAs) regulations answered many questions posed by commenters after the proposed regulations were issued, more questions are emerging concerning implementation of the rules.

IRS Releases Reminder About Saver’s Credit

The Internal Revenue Service (IRS) has put out a reminder that low- and moderate-income workers may be eligible for the saver’s credit for their contributions to an IRA or defined contribution savings plan.

Retirement Plan Fee Debate Likely to Continue Past 2008 Elections

The nation’s regulatory and legislative bodies continue to be a beehive of retirement plan-related activity, which is expected to continue through the 2008 presidential election cycle and into 2009, but ultimately be resolved by regulations.

SEC: Stay Tuned for 12b-1 Changes

While the Securities and Exchange Commission (SEC) is actively considering changes to Rule 12b-1, most of the comments on the subject appear to be opposed to change.

401(k) Participant Accuses Wells Fargo of Self-Dealing

A participant in the Wells Fargo&Company 401(k) Plan has sued the financial services company and a number of its executives over allegations the plan improperly did million of dollars in plan business with Wells Fargo-affiliated entities.

Auto Enrollment Guidance Issued

The Treasury Department and the Internal Revenue Service (IRS) issued proposed regulations implementing new rules that facilitate the adoption of automatic contribution arrangements in 401(k), 403(b), and 457 plans.