SAME-SEX COUPLES (STILL) NOT "MARRIED" FOR FEDERAL TAX PURPOSES

The Internal Revenue Service (IRS) has recently issued guidance, through answers to frequently asked questions (FAQs), clarifying how same-sex couples who are in state-recognized domestic partnerships, civil unions, or marriages should file their federal income tax returns.
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TO BE OR NOT TO BE: COURT HOLDS TPA "TO BE" AN ERISA FIDUCIARY

In a somewhat surprising opinion, a Michigan federal trial court recently held that a third-party administrator of two self-funded employer health plans was an ERISA fiduciary. As a result, the TPA was held liable for breaching its fiduciary duty by not disclosing certain fees that had been charged to the plans.
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FAILURE TO TIMELY ALLOCATE FORFEITURES

Sponsors of 401(k) plans often fail to timely use or allocate forfeitures, thereby potentially disqualifying the plan. Recent IRS audits have revealed a renewed focus on the proper use of forfeitures - making compliance a top priority for plan sponsors.
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LOSING BY WINNING: CASE OFFERS HARSH REMINDER CONCERNING PREVENTABLE EXPENSES

The circumstances behind a recent court decision were typical, and their consequences painfully predictable. Although the plan administrator "won," that victory does not reflect the huge--and entirely unnecessary--cost to the plan sponsor in terms of overhead and legal fees.
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CORRECTING OPERATIONAL MISTAKES CAN ELIMINATE FIDUCIARY LIABILITY

Over the past decade, plan sponsors have become familiar with the voluntary correction programs offered by the IRS and Department of Labor, including the Service's Employee Plans Compliance Resolution System (EPCRS) and the DOL's Voluntary Fiduciary Correction Program (VFCP). These programs offer formal ways for sponsors to correct certain administrative errors in the operation of their plans.
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