In a Texas divorce, one of the major assets to address in a property division include retirement accounts, such as a 401k or defined benefit pension plan. Retirement assets within a private employer’s retirement plan are typically governed by ERISA. ERISA, the Employee Retirement Income Security Act of 1974, establishes particular processes for dividing assets […]
Earning the Q in your QDRO Read More »
This week I fielded a question from a soon-to-be-retiree regarding her pension that I thought was worth sharing. Her employer offers a defined benefit pension plan, which she is fortunate enough to receive. Her employer’s pension plan offers the opportunity to receive benefits in the form of a single lump sum payment or various annuity
It’s your pension. Who is your financial adviser helping? Read More »
Employers who want to thin the herd of highly paid, older employees often offer early retirement incentive packages that trade off an increased pension benefit or severance package in exchange for an employee agreeing to voluntarily retire early. Early retirement is typically offered to a large number of employees before the company decides to engage
Age Discrimination and Early Retirement Incentives Read More »
, next to perhaps the home. Regardless of the value in these retirement plans, 401k plans and pension plans, many couples mishandle these accounts in divorces. The result can be a substantial financial loss for one spouse, sometimes even for both. Today’s post will detail some of the most common ways people in Texas divorces mishandle
7 Ways You Are Mishandling Retirement Plans in Your Texas divorce Read More »
You worked for decades at an employer, retired and began receiving your defined benefit pension from your employer. You have planned your finances around your pension payments, social security and other sources of retirement savings. Then a letter shows up from the pension administrator. No, it isn’t your monthly check. It isn’t a spare check,
Pension overpayments / pension recovery: Dallas pension lawyers Read More »
In my 2010 article about KSOPs, I discussed how KSOPs risk employees over-leveraging their employment into excessive financial risk. KSOPs blend 401k and ESOP plans in which the employer uses an ESOP with the employer’s stock as an investment as an investment option within the 401k to let employees use their retirement savings to invest in
Blackberry layoffs show why KSOPs are bad for employees Read More »
In a highly important move, the Department of Labor released guidance on how ERISA-governed employee benefit plans will treat same-sex marriages following the Supreme Court’s overruling of DOMA’s definition of marriage as limited to one man and one woman. ERISA-governed benefit plans include private employer benefit plans like 401k plans, defined benefit pensions and health
DOL releases official guidance on ERISA and same sex marriage Read More »
During a divorce one of the biggest issues in dividing the marital property is dividing the financial assets. Most married people will designate their spouse as the beneficiary on the account or policy. The Employee Retirement Income Security Act (ERISA) governs most employee benefits. It requires married employees to designate their spouse as the primary
What happens to my beneficiary designations after a divorce in Texas? Read More »
As an employee, contributing to a 401k plan can be an essential aspect of your retirement planning. However, if your employer contributes to your 401k plan, you may wonder whether they can stop contributing to it. In this article, we will discuss what a 401k plan is, how employer contributions work, and whether your employer
Can my employer stop contributing to my 401k? Read More »
Employees must understand the importance of making informed investment decisions when it comes to your 401(k). One common question that arises is whether investing in company stock within your 401(k) plan is a wise choice. In this comprehensive article, we delve into the factors you should consider when deciding whether or not to invest in
Should I invest in company stock in my 401k? Read More »
401k fees have come into focus as one of many ways the financial services industry leeches money from the investors. That focus turned into litigation by participants against their plans (and plan service providers). Eventually the Department of Labor instituted fee disclosure rules that require plan service providers to break down fees charged to the
Should I be concerned about 401k fees? Read More »
Sometimes, yes. Any time the market dips, it inevitably leads to a string of suits against brokers for all sorts of reasonable and unreasonable theories. The attitude suggests people don’t care how their losses go away, as long as somebody else can foot the bill. Sometimes these suits are legitimate. Accountholders, seeing gains during the market boom
Can I sue my broker for losses in my account? Read More »
401k loans allow you to borrow against your 401k account tax-free (as long as you pay it all back). The loan payments typically occur by payroll deductions. If considering a 401k loan you should carefully consider he loan terms and the ramifications. Your employer does not have to offer 401k loans and can severely limit
Employment Attorney explains: When can I take a 401k loan? Read More »
By now you received fee disclosure statements on your 401k, ESOP, 403(b) and profit sharing plans. These fee disclosure statements, known as 404a5 Participant Disclosures, ensure these retirement plans provide plan participants with a minimum amount of information about the fees charged by plan investments and fees paid by the plan (often from those investment fees)
Retirement Plan Participant Disclosures Read More »
It depends. Generally you cannot hold anybody else responsible for market losses on your investments. However, there are some situations where another party may be responsible for your investment losses. Some claims against brokers do not relate to market losses but to other negligent or fraudulent acts by a broker or adviser. When considering lawsuits
Can I sue my Texas broker for investment losses? Read More »
Generally, both plan formats defer compensation because the employee has elected to defer taking cash in hand to obtain some additional benefit, such as deferring taxes on the money or investing on a tax deferred basis. Under more specific legal definitions, there is a distinction between how these different plans work. Today’s post will discuss
What is the difference between a 401k plan and a deferred compensation plan? Read More »
By now you received fee disclosure statements on your 401k, ESOP, 403(b) and profit sharing plans. These fee disclosure statements, known as 404a5 Participant Disclosures, ensure retirement plans provide participants with a minimum amount of information about the fees charged by plan investments and fees paid by the plan (often from those investment fees) to companies that
ERISA Retirement Plan Participant Disclosures Read More »
When employees leave employment, the common response is to want to sever ties and move on, especially if the employee left involuntarily or on bad terms. However, withdrawing or rolling over your 401k may not be the best decision in every case. There are important financial and legal considerations. Before making decisions about your 401k
Benefits of staying in your 401k after you leave an employer Read More »
KSOP is jargon used within the financial and employee benefit industries as shorthand to explain the arrangement where a 401k plan houses an ESOP of the employer’s stock as an investment option. An ESOP is an Employee Stock Ownership Plan that allows employees to purchase company stock through a retirement plan. It is an ERISA
Pensions are a type of retirement benefit offered by employers or the government that provide a regular income to individuals after they retire. However, the calculation of pension benefits is not always straightforward. In this article, we will explore how pensions are calculated, including the various factors that can impact the final amount. Unlike an
How are pensions calculated? Understanding the process Read More »