News & Analysis as of

Employer Contributions Retirement Plan

Mayer Brown

The Current State of the Law in ERISA Forfeitures Cases

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Since September 2023, ERISA plaintiff’s firms have filed approximately 60 class action lawsuits challenging the longstanding practice of plan sponsors using plan forfeitures to offset their employer contributions in 401(k)...more

Morris, Manning & Martin, LLP

A Friendly DOL Amicus Brief on Forfeitures

On July 9th, the Secretary of Labor filed an amicus brief with the Ninth Circuit relating to the appeal of Hutchins v. HP, Inc. In that case, a participant claimed that forfeitures should have been used to offset plan...more

Ice Miller

Avoiding Impermissible CODAs in Governmental Pension Plan Reform and Enhancement

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One topic that frequently arises is whether a qualified governmental plan, under Internal Revenue Code (Code) Section 401(a), may allow an employee the election on whether to contribute at different pretax employee...more

Epstein Becker & Green

Hot Dogs, Fireworks, and the One Big Beautiful Bill: What Employers Need to Know About the Employee Benefits and Executive...

On July 4, 2025, there were more than hot dogs and fireworks. President Trump signed the One Big Beautiful Bill Act (OBBB), a comprehensive law that implements several of the administration’s tax, health, defense, and energy...more

Bricker Graydon LLP

Don’t Forget About the IRS When Correcting Delinquent Plan Contributions

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Employers that do not timely deposit participant deferrals and loan contributions to their employer sponsored retirement plans can be subject to Department of Labor (DOL) penalties for breaching their fiduciary duties....more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Maybe time to get rid of the SEP?

Those small employer plans like SEPs and SIMPLE-IRAs? They’re great starter tools for retirement savings. Think of them like toddler clothes: low maintenance, affordable, and easy to manage. No administration costs, no annual...more

Eversheds Sutherland (US) LLP

The one, big, beautiful benefits legal alert

On May 12, 2025, the House Ways and Means Committee released “The One, Big, Beautiful Bill” containing its draft tax legislation (the OBBB), which includes a number of items that may be of particular interest to US employers...more

BCLP

Abolition of MPF Offsetting Mechanism in Hong Kong

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From 1 May 2025, in respect of Hong Kong’s MPF scheme, the MPF offsetting mechanism will be abolished, meaning that employers no longer will be able to use the accrued benefits of their mandatory contributions under the...more

Foley & Lardner LLP

Taming the Tariffs: Employee Benefit Issues for Employers During Times of Economic Uncertainty – Group Employee Terminations

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Many companies are scrambling to quickly assess how to reduce the business impact of the upheaval to U.S. manufacturing and trading with the recent onslaught of tariffs threatened or imposed by the United States and the...more

Foley & Lardner LLP

Taming the Tariffs: Employee Benefit Issues for Employers During Times of Economic Uncertainty – Reducing or Suspending Qualified...

Foley & Lardner LLP on

Many companies are scrambling to quickly assess how to reduce the business impact of the upheaval to U.S. manufacturing and trading with the recent onslaught of tariffs threatened or imposed by the United States and the...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Vesting doesn’t help with retention

I have worked at places that were so unpleasant that I consider myself lucky the vesting schedule was only six years. If they had the option, I’m convinced they would have implemented a 20-year vesting schedule. For me,...more

Williams Mullen

PODCAST: Williams Mullen's Benefits Companion - Big Changes to Catch-Up Contributions in 2025

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On this episode of Williams Mullen's Benefits Companion, host Brydon DeWitt discusses big changes to contributions to retirement plans under SECURE 2.0 that begin in 2025. He covers the new “Super Catch-Up” contributions for...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Again, stop with those Mega Back Door Roth articles

People like to read, and so do I. They also like to read articles and find out information, especially if it can save them money. So they read about the opportunity where through a 401(k) plan, they could put away over...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Honeywell wins forfeiture case

There have been 25 cases where plan sponsors have been sued over their right to use forfeitures to reduce employer contributions. 7 cases have had motions for summary judgments made by the plan sponsors. 2 cases have survived...more

Pullman & Comley - Labor, Employment and...

Retirement Plan Update – Forfeitures are New Focus of Fiduciary Breach Litigation

Many employer-sponsored defined contributions plans, including 401(k) profit sharing plans and money purchase pension plans include a vesting schedule – a period over which a plan participant earns a nonforfeitable right to...more

Holland & Knight LLP

An Emerging Trend in ERISA Class Action Litigation: 401(k) Forfeiture Suits

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There has been a recent uptick in ERISA class actions challenging the use of 401(k) plan forfeitures. Forfeitures are employer contributions that participants forfeit when they leave employment before those contributions vest...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

I don’t see Roth Employer Contributions as being a big thing

One of the option of SECURE 2.0 is allowing employers to offer partricipants the right to Roth Employer contributions where they can pay the taxes upfront, and get tax free treatment on employer contributions....more

The Wagner Law Group

Forfeiture Accounts Hold More Than Nonvested Employer Contributions

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The Wagner Law Group continues to monitor the ongoing flood of “forfeiture” litigation. This alert is our seventh reporting on and analyzing the nature of the claims raised by plaintiffs, the defenses asserted against them,...more

Dickinson Wright

Both Employers and Participants Benefit from New IRS Guidance on Correcting Inadvertent Benefit Overpayments

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Retirement plan administration mistakes require difficult conversations with participants, especially when the mistake involves an overpayment.  Changes in the law, specifically, SECURE 2.0 and IRS Notice 2024-77, give plan...more

Bennett Jones LLP

Federal Government Proposes Changes to 30 Percent Rule to Spur Pension Investment Within Canada

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Canada’s federal government announced it intends to remove the “30 percent rule” for investments by domestic pension funds in Canadian entities. The change is part of the Fall Economic Statement that was released on December...more

Quarles & Brady LLP

Forfeiture Funds: Legal Requirements, Permitted Uses, and Litigation Risk Management

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Forfeiture funds in 401(k) plans represent a unique asset pool with specific regulatory requirements and practical applications. Forfeiture funds arise when participants terminate employment with the company before becoming...more

Kaufman & Canoles

ESOPs, Benefits & Compensation Q3 2024 Client Update

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Fall greetings from the Kaufman & Canoles ESOPs, Benefits & Compensation team. We hope you’re enjoying the cooler weather, changing leaves, and—of course—the continual pace of change in employee benefits. Please find below a...more

Kelley Drye & Warren LLP

Student Loan Payments Need Not Derail Retirement Savings

The IRS recently released interim guidance to assist employers who wish to provide matching contributions to the 401(k) or 403(b) plan accounts of employees on their qualified student loan payments (“QSLPs”), in the same way...more

Bricker Graydon LLP

Compliance Tips: Do You Understand How “Pick-up” Contributions Work?

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A much-used but often confusing element of governmental retirement plans are “pick up plans,” where an employer pays -- or “picks up” -- an employee’s required contribution under the State’s public employment retirement...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

BAE wins forfeiture case

BAE Systems Inc. has won a class action lawsuit about misusing 401(k) plan forfeitures. U.S. District Judge Anthony Trenga, of the U.S. District Court for the Eastern District of Virginia, granted BAE’s motion to dismiss...more

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