Contributing Author: Dianne Schechter If a couple has a joint investment in a retirement plan, such as a 401(k) or IRA and subsequently divorces, the plan account can be divided to give each spouse their fair share. To divide the plan account without either spouse incurring a massive penalty for...
Contributing Author: Dianne Schechter, Paralegal The divorce process is full of details, stress, and decisions. After the divorce is final, you and your divorce lawyer cannot drop the ball and ignore performance under the terms of the final judgment. If your final divorce decree or marital set...
The Internal Revenue Code (IRC) has nondiscrimination requirements for 401(k) retirement plans subject to the annual actual deferral percentage (ADP) test. However, plan sponsors can avoid ADP testing for their 401(k) plan through meeting the requirements for a safe harbor plan. A safe harbor 401...
Most 401(k) participants sit through a single presentation by their company's retirement plan representative. They fill out a few forms, designate a beneficiary, and allocate their contributions to a few selected plans. After that, they may never take any action involving their 401(k) plan again....
Pension plan sponsors owe a fiduciary duty to plan participants. As part of their fiduciary duty, plan sponsors must act prudently and run the plan solely in the interest of participants and beneficiaries. Some plan sponsors may forget that this duty extends to vested participants even after they...
Contributing Author: Kristine M. Custodio, Advanced Certified Paralegal Has your small business grown over the past year? According to the Small Business Administration (SBA), you are not alone - in the second quarter of 2016, California's economy grew at an annual rate of 2.2%, which was faster...
Contributing Author: Kristine M. Custodio, Advanced Certified Paralegal Since it is National Small Business Week, I will be focusing my blog posts this week on empowering the small business owner for success throughout the life cycle of their business. According to the Small Business Administrat...
Butterfield Schechter LLP is proud to support our local first responders. I along with members of our support team will be volunteering at the local Wills for Heroes event on May 20th. For more information about Wills for Heroes, click here.
Contributing Author: Kristine M. Custodio, Advanced Certified Paralegal The first question you are likely asking is what is an Offer in Compromise or OIC? Basically, an OIC is a settlement offer to the Internal Revenue Service (IRS) seeking a reduced amount to settle your outstanding tax debt. Y...
Contributing Author: Dianne L. Schechter, Paralegal The Senate recently voted to roll back an Obama-era rule that would make it easier for major cities to launch city-sponsored retirement plans. A measure approved 50 to 49 would scale back a Labor Department rule finalized last year that clears...
Contributing Author: Dianne Schechter, Paralegal Employees no longer routinely have to provide their employers with documentation proving they need a hardship withdrawal from their 401(k) accounts, according to the Internal Revenue Service (IRS). Employees do, however, need to keep source docume...
Most qualified retirement plans, including ESOPs, 401(k)s, and 403(b)s provide for a designated beneficiary to receive benefits under the plan when the participant dies. When an employee designates a beneficiary, he or she may be filling out the documents along with dozens of other pages of docum...
Contributing Author: Dianne L. Schechter, Paralegal The National Defense Authorization Act for Fiscal Year 2017 (NDAA 17) contained a major revision of how military pension division orders are written and will operate. Instead of allowing the states to decide how to divide military retired pay a...
Many people make the mistake of thinking that a will is only necessary for individuals with complex estate plans. This is a common misconception. However, there is a reason that a will is one of the simplest estate planning tools available to Californians. Anyone can benefit from having a last wi...
Many people who set aside money for their retirement are focused on the dollar value of their investments. Contributions may be based on calculating what they need to set aside to live comfortably in their retirement. However, it is also important to consider tax diversification because you may n...
The initial decision to start your own company can be the most difficult step to take in creating a small business. Even if you are familiar with the industry, practices, and market, the process of getting your business going can be daunting. Going through a simple checklist can help you decide w...
Estate plans are set up to ensure family members will be provided for after a loved one passes away. Unfortunately, in spite of the decedent's best intentions, disputes involving a family inheritance can tear a family apart. Family estate disputes can be caused by a number of issues. Disputes can...
After spending hours of time plugging in numbers on a tax website or using tax-prep software, you are finally ready to submit your return. Before you can submit your return, you are prompted to enter your PIN number. However, a few hours later, you get a notice that your return was rejected becau...
The deadline for filing your 2016 tax return is only days away. Tax returns for tax year 2016 are due by April 18th, 2017, which is a Tuesday. If your taxes are relatively simple, you may still have the ability to timely file your taxes, either by mailing in your tax return or via electronic fili...
Contributing Author: Dianne L. Schechter The U.S. Department of Labor (the “Department”) has announced a 60-day extension of the applicability dates of the fiduciary rule and related exemptions, including the Best Interest Contract Exemption. The announcement follows a February 3, 2017, presiden...
Today, I am presenting in Denver, Colorado at the National Center for Employee Ownership (NCEO) 2017 Annual Conference on How ESOP Companies Utilize Their Equity Value to Sustain Long Term Employee Ownership. The annual conference is designed to provide learning and networking opportunities with ...
As the deadline to file your federal income tax looms, many individuals who gave money or goods to a charity in 2016 may be able to claim a deduction on their federal income taxes. If you intend to seek a deduction for your donations, here are some important facts to keep in mind when filling out...
Did you contribute towards an individual retirement account (IRA) in 2016? If you answered no, do not worry, you still have time. You have until April 18, 2017, to contribute to an IRA and have the contribution apply to the 2016 tax year. The clock is ticking…
Contributing Author: Dianne Schechter Employers providing disability benefits to their employees should note that the U.S. Department of Labor (“DOL”) recently changed how disability benefit claims are administered. The new disability claim rule will apply to ERISA-governed disability benefits c...
In Munro v. Univ. of S. Cal., C.D. Cal., No. 2:16-cv-06191, the U.S. District Court for the Central District of California recently held that participants of the University of Southern California ("USC") retirement plan are not bound to arbitrate their claims of breach of fiduciary duty pertainin...