Individuals are permitted to roll over amounts in one IRA to another IRA only once in a 12 month period. The rollover must be completed within 60 days. A tax lawyer at a major New York law firm recently tripped on this rule to his detriment. The tax lawyer had several different IRAs. He took
Understanding Employee Benefits and key developments in the employee benefits field and items of interest to our clients. MORE
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Former Employee Cannot Recover Penalties for COBRA Notice Violation
By Stinson LLP on
Terminating employees who lose coverage under an employer’s group health plan are frequently entitled to continue that coverage under the federal law commonly known as COBRA. Employers are required to provide a former employee with a notice at the time of termination of employment describing the employee’s rights to continue coverage and the cost of …
Best to Save Plan Documents Until All Retirees and Beneficiaries are Dead
By Stinson LLP on
As a result of industry consolidation over the years, employers can find themselves responsible for pension plans of companies long out of existence. A recent federal district court decision imposed a penalty of $4,470 on a plan administrator who delayed providing the widow of a plan participant with the plan document in effect 34 years …
Maintaining Poor COBRA Procedures Can Be Expensive
By Stinson LLP on
I blogged a few months ago about an employer who had to pay more than $83,000 in penalty, attorneys’ fees and costs for failure to give a proper COBRA notice for a dental plan. I warned employers that failure to maintain adequate procedures for COBRA compliance can be costly. That amount pales in relation to …
Who Cares if I Give a COBRA Notice for My Dental Plan?
By Stinson LLP on
Employers are generally aware that medical plans are subject to continuation coverage under the federal law known as COBRA. They may forget that COBRA extends to all group health plans, including dental, vision and medical flexible spending account plans. A recent federal district court decision highlighted the risk to employers who forget those facts.
The …
Participants Are Entitled to Specific Information About Their Service Credit Even Before They Are Entitled to Their Pensions
By Stinson LLP on
In a recent federal district court case, Whirlpool Corporation closed a factory and notified a number of former employees about the status of their pensions, including their years of credited service. The corporation’s records differed from the service records maintained by the union. Approximately five years after the factory closed, some of the participants …