In a recent ruling 188 B. R. 444
(Bankr. N. D. Fla. 1995) Judge Paskay made Morten Harris' creditor's
day. The Bankruptcy Courts found that pension plans that would be qualified but
for inappropriate operational compliance with the tax or labor law will not be
creditor protected. Loss of "qualified" status could result from:
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Failure to cover all eligible employees - including affiliated Service Groups.
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Failure to keep plan documents up to date.
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Inappropriate investments and loans.
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Prohibited transactions
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Failure to file Form 5500
Many businessmen and professionals with substantial qualified
plans are comfortable in the belief that their plan is safe from litigation.
Well, it may not be.
Would you rather know about it before litigation - or afterwards?
We have made arrangements with a qualified pension
administration firm to review plans for compliance with the above criteria for
a nominal charge. If it makes sense to take a look at your plan - please
contact us.
Note - This material is intended to provide accurate and current
general information. It is not intended to give specific legal, accounting, tax
or other professional advice. You are urged to consult your professional
advisers for assistance regarding your personal specific situation.
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