ERISA Section 408(b)(2): Is That Still a Thing?
Publication: Journal of Pension Benefits | Winter 2023
Ilene H. Ferenczy, Esq. and Alison J. Cohen, Esq.
Publication: Journal of Pension Benefits | Winter 2022
Ilene H. Ferenczy, Esq.
‘Til Death: Payments and Problems for Death Benefits in Retirement Plans
Publication: Journal of Pension Benefits | Summer 2022
Adrienne I. Moore, Esq.
Publication: Journal of Pension Benefits | Autumn 2021
Adrienne I. Moore, Esq.
Loans and Distributions Under the CARES Act: Legislation in the Time of Cholera (With Apologies to Gabriel Gárcia Marquez)
Publication: Journal of Pension Benefits | Summer 2020, Volume 27, Number 4
Ilene H. Ferenczy, Esq.
Another Year-End Tax Act Brings Changes for Plan Sponsors (and Their Service Providers)
Publication: Journal of Pension Benefits | Spring 2020, Volume 27, Number 3
Ilene H. Ferenczy, Esq. and Elizabeth Thomas Dold, Esq.
Q&A: Service Provider’s New Year’s Resolutions
Publication: Journal of Pension Benefits | Summer 2019/Volume 26, Number 4
Mary J. Giganti, Esq. interviewed Ilene H. Ferenczy, JD., CPC, APA, Managing Partner of Ferenczy Benefits Law Center, who shared many tips and ideas for the New Year.
Meet the New Boss: A Primer on the New Employee Plans Compliance Resolution System Under Revenue Procedure 2019-19
Publication: Journal of Pension Benefits | Summer 2019/Volume 26, Number 4
The IRS made changes in regard to EPCRS in September 2018 and subsequently substantially expanded the self-correction program with the release of Revenue Procedure 2019-19.
The Current Evolution of MEP Guidance
Publication: NIPA: Strictly Business Website | Summer 2019
July was a good month for multiple employer plans (MEPs) and those who favor them. Three pieces of guidance were issued by the Internal Revenue Service (IRS) and the Department of Labor (DOL) making MEPs more attractive and accessible to interested employers. All three reflect the Administration’s position (as expressed by President Trump’s Executive Orders to the IRS and the DOL in August of 2018) that MEP creation and maintenance should be encouraged.
There’s an APP for That
Publication: ASPPA Plan Consultant | Summer 2019
Industry innovators are tackling the missing participant problem. Is RCH’s Auto Portability Program the solution?
One of the most difficult issues facing plan sponsors and administrators nowadays is that of missing participants. As more and more people are covered by a retirement plan, the possibility increases that while an employee may leave a company, his or her benefit funds remain in the plan.
Is the Swan Going to Live?
Publication: Journal of Pension Benefits | Summer 2018, Volume 25, Number 4
Will Congress pass the Retirement Enhancement and Savings Act (RESA), introduced by retiring
Senator Orrin Hatch, which would be a boon to plan sponsors and participants alike?
Throughout the past several years, Senator Orrin Hatch (R-Utah) has led a charge to make certain modifications to the law relating to qualified retirement plans. This has endeared this man, who is on the opposite political spectrum, to the author in a manner that is quite unexpected. Senator Hatch recently announced that he is leaving the Senate when his term expires this year. And, he again introduced a 2018 version of the Retirement Enhancement and Savings Act (RESA) for consideration by Congress. Will this last chance to get this bill passed be the Senator’s wonderful swan song and offer retirement plan sponsors the relief they so richly deserve? Or, will it die on the vine, as have its predecessors?
Defined Benefit Plans: Determining Professional Status of Plan Sponsors for PBGC Coverage
Publication: Practical Law Practice Note | March 7, 2018, Resource ID: w-012-5153
Under the Internal Revenue Code (Code) certain sponsors of defined benefit pension plans that are covered by the Pension Benefit Guaranty Corporation (PBGC) may take a larger tax deduction for their plan contributions than sponsors of pension plans that are not covered by the PBGC. Under the Employee Retirement Income Security Act of 1974 (ERISA), pension plans established and maintained by a professional service employer that have never had more than 25 participants are exempt from PBGC coverage. This Practice Note provides an overview of the favorable tax treatment for certain small defined benefit plans and explains how the PBGC determines the professional status for those defined benefit plans. It also discusses practical implications of the PBGC rulings.
Plan Compliance When the Watchdogs Are in the Dog House
Publication: 401(k) Advisor | Volume/Issue: Vol. 25, No. 1, January 2017
You may recall that, in 2013, there was a scandal at the Internal Revenue Service (“IRS”) that related to the evaluation by the IRS of political entities that were applying for tax exempt status. Ostensibly, the IRS was scrutinizing (and, perhaps, delaying or denying) applications from political organizations with conservative leanings. The FBI ultimately reported that it found no evidence to warrant any criminal charges in this matter, but the reputation of the IRS was soiled nonetheless. Lawsuits were ultimately settled by the Trump Administration earlier this year.
Hurricane Summary Relief Charts
Publication: 401(k) Advisor | Volume/Issue: Vol. 24, No. 5, May 2017
The charts below reflect the hurricane relief that is in effect as of September 29, 2017. Please see further updates for information about the Disaster Tax Relief and Airport and Airway Extension Act of 2017 if it becomes law.
The Elusive IRC Section 410(b)(6) Transition Rule
Publication: 401(k) Advisor | Volume/Issue: Vol. 24, No. 7, July 2017
One of the most confusing parts of working with retirement plans occurs when the plan sponsor buys another company. The issues that arise in this context can (and do) provide grist for entire textbooks and treatises. This article will review one aspect of the rules relating to transactions, which is commonly the key to a successful handling of benefits matters in M&A, and is also commonly misunderstood: the IRC §410(b)(6) Transition Rule (“T-Rule”). If this rule is not applied correctly, terrible things can result that can cost the buyer significantly. So, let’s demystify the rule.
The Fiduciary Regulations: What a Fine Mess You Have Gotten Us Into, Ollie
Publication: 401(k) Advisor | Volume/Issue: Vol. 24, No. 5, May 2017
By: Ilene H. Ferenczy, Esq.
The DOL has delayed the applicability date of the new fiduciary conflict of interest regulation and the related prohibited transaction exemptions (collectively, the “Regulation”) from April 10 to June 9. The purpose of the delay is to permit the DOL to engage in the study of the Regulation, as directed by the Trump Administration, to ensure that the regulations do not cause more harm than good, without requiring plans to comply with the Regulation in the interim.
Law Firm “Determination Letters”: Are They Valuable?
Publication: Bloomberg BNA Compensation Planning Journal | Volume/Issue: Vol. 45, No. 5, May 5, 2017
By: Ilene H. Ferenczy, Esq.
One of the newest products being offered to plan sponsors and administrators in the qualified retirement plan arena is the so-called “Private Determination Letter” (or PDL). These letters are intended to give the qualified plan sponsor some comfort that the plan document complies with applicable legal requirements and will not be found wanting if the Internal Revenue Service audits the plan.
Understanding the value of a PDL requires a little understanding of the history of the IRS vis-à-vis plan documents.
Strictly Legal: The Triage
Publication: NIPA “Strictly Business” Newsletter | Volume/Issue: April 18, 2017
By: Ilene H. Ferenczy, Esq.
Great TPAs have an amazingly broad spectrum of knowledge and talents. TPAs are required to be well organized, personable, and highly attentive to detail. They also must understand the law surrounding employee benefits and how plans operate, making them quasi-lawyers and quasi-tax accountants. TPAs need to understand investments enough to account for them, making them quasi-investment experts. And, it’s always good if the TPA has a bit of the salesman, so that s/he can market more services. In short, TPAs have a very difficult job, and often do it with very few accolades, as outside people commonly don’t appreciate the tightrope that their TPA walks.
The New DOL Rules: Why Should TPAs Care?
Publication: ASPPA Plan Consultant | Volume/Issue: Winter 2017
By: Ilene H. Ferenczy, Esq.
Among the many questions that are wending their way around the benefits industry in relation to the final Department of Labor (“DOL”) Conflict of Interest Regulation [Labor Reg. §2510.3-21(c) (“COI Reg”)] and the associated prohibited transaction exemptions [Best Interest Contract Class Exemption (“BICE”); Exemption for Principal Transactions; Amendment to PTE 75-1; Amendment to PTE 84-24; Amendment to PTEs 86-128 and 75-1; Amendments to PTEs 75-1, 77-4, 80-83, 83-1 (all dated 4/8/16)] is one that comes from the third party administration (“TPA”) community:
Handling Client Errors: Doing More Than Applying Bandaids to Benefits Boo-Boos
Publication: ASPPA Plan Consultant | Volume/Issue: Fall 2016
By: Ilene H. Ferenczy, Esq.
Everyone in this business knows that it is nearly impossible to flawlessly administer a retirement plan. The rules are too extensive, the regulations too numerous, and the issues too broad for perfection. Simplification projects by Congress and the Administration only lead to more complexity.
Revisiting MEPs … Again
Publication: 401(k) Advisor | Volume/Issue: Vol. 23, No. 11, November 2016
By: Ilene H. Ferenczy, Esq.
Over recent years, multiple employer plans (MEPs) have been discussed several times as a way to simplify plan administration, particularly for small employers. If you are keeping score, it’s baaaaaack.
The Latest in Plan Corrections
Publication:401(k) Advisor | Volume/Issue: Vol. 23, No. 7, July 2016
By: Ilene H. Ferenczy, Esq.
As we all get more sophisticated in our handling of qualified retirement plans, we also must become more and more knowledgeable about how plan errors are corrected. Part and parcel of that development on a practitioner side is the development by the IRS and the other regulatory agencies of correction opportunities.
Current Regulatory Happenings in the Benefits World
Publication: ASPPA Plan Consultant | Volume/Issue: Winter 2016
By: Ilene H. Ferenczy, Esq.
As we begin 2016, we find ourselves in an interesting maelstrom of potential changes that may make the new year particularly challenging. While Congress is mired in political upheaval (which will likely get worse as the election year progresses), the Treasury/IRS and the Department of Labor are busy pursuing their own agendas.
The Triple Stack (Match) – It’s Not Just for Pancakes Anymore!
Publication: Journal of Pension Benefits | Volume/Issue: Vol. 23, No. 1, Autumn 2015
By: Ilene H. Ferenczy, Esq.
So, you’re working on the profit sharing plan for your favorite doctor’s practice, and you find out that Dr. Snipits, who is 105, finally decided to retire. Dr. Laser, a squeaky clean new physician, is buying the practice. Dr. Laser, known to his friends as “Doogie Howser” and to his new staff as “that young whippersnapper,” is 32 years old.