Monthly Archives: October 2020

The 401(k) Problems With Former Employees

My latest article on JDSupra.com can be found here.

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Like your parents, the IRS VCP program wants you to come clean

As a child, you’re usually told by your parents that they just want to hear the truth and that telling the truth is going to carry a far less punishment than if you lie and try to hide whatever bad … Continue reading

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Benchmark your providers

I had a contractor work on my house for a couple of projects. Frank installed a new front door, installed a garage, re-did the sheetrocking of a few rooms, and installed a new kitchen. We thought he was dependable and … Continue reading

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The Problem With Loans

They often say that the road to hell is paved with good intentions. I don’t know who said it first (I heard it was originated with St. Bernard, the saint, not the dog), but perhaps they were a 401(k) plan … Continue reading

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What financial advisors really do

One would think that the role of a retirement plan financial advisor is to pick plan investments. Most plan sponsors think that way and some financial advisors think as well. Some financial advisors promote their brilliant picking of actively managed … Continue reading

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The Magic Bullet of 404(c) Compliance

ERISA §404(c), is the code section that may limit a plan sponsor’s liability in retirement plans where participant directs their investments. There are many people in the marketplace that have guaranteed that plan sponsors won’t get sued with 404(c) compliance … Continue reading

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Sometimes, they get it

As an ERISA attorney, I do get to talk to a lot of financial advisors and ERISA independent fiduciaries around the country, and the lament is that many plan sponsors don’t understand or care about such important fiduciary problems like … Continue reading

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The Truth about plan disqualification

In the movie Casino, Robert De Niro’s character Lefty Rosenthal warns Joe Pesci’s character Nicky Santoro that his actions will get him into the Gaming Control Board’s “Black Book”, which means he would be banned from all casinos. Nicky doesn’t … Continue reading

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Beware of TPAs who are really insurance sales people

A friend of mine who is a financial advisor asked me about a third party administration (TPA) firm that is close to where I live in Long Island. My friend has this prospect with a defined benefit plan handled by … Continue reading

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Schlichter hit with $1.5 million sanction

Being an ERISA litigator isn’t as easy as one may think. For class action lawsuits, you’re fronting money with the hopes of getting a large settlement in a class action. You’re pushing novel legal theories and sometimes, the court pushes … Continue reading

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