The U.S. Court of Appeals for the District of Columbia ruled in Halbig v. Burwell that federal tax subsidies to purchase health insurance are not available if the insurance is acquired through a federal exchange (while such subsidies are available if purchased through a state exchange).  If upheld, this decision will greatly hurt Obamacare.  The same day that Halbig was decided, the U.S. Court ...

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The IRS has issued various forms designed to streamline operational defect corrections with respect to tax-qualified plan administration failures.  The forms are 14588 and related forms 14588-A through 14588-I.  For example, Form 14588-E relates to plan loan failures.  Exciting! ...

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In a Fiduciary News article of June 17, 2014, Ron Surz of Target Date Solutions said the following regarding investments in target date funds:  “Very little good has happened since 2008.  Unfortunately, TDFs have actually become riskier at the target date.  Fidelity recently increased their equity exposure, positioning for the performance horse race.  Also, non-equities at the target date ...

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On June 18th, the IRS announced it will make major changes to its offshore voluntary compliance programs to help taxpayers better deal with offshore assets.  Streamlined procedures announced in 2012 will be expanded.  Touchy criminal matters are addressed by expansion of the Offshore Voluntary Disclosure Program (OVDP). ...

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The Government Accountability Standards Board (GASB) recently issued rules relating to other post-retirement benefits (OPEB).  OPEB are post-retirement benefits other than pension benefits.  The new rules basically follow the pension rules, meaning very substantial liabilities will need to be “booked” in the a few years by most state and local governments. ...

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Estate planning often fails to consider Medicaid nursing home considerations.  Many middle and even upper income persons can potentially qualify for nursing home care paid for by the government.  However, proper advance planning generally is necessary.  The question of when estate planning should consider Medicaid potential eligibility is a sticky one, and it can often turn on age, health ...

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Many older wills fail to include some provisions that may be necessary to protect against circumstances not anticipated when the will was signed.  For example, many older wills do not take into account a situation where a beneficiary might be receiving Medicaid disability or nursing home benefits.  Receipt of a bequest could destroy eligibility.  Also, many wills contain outdated tax language, ...

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The U.S. Supreme Court held in Clark v. Rameker that inherited IRAs are not protected from creditors in the event of bankruptcy. (Pre-death, the IRA would have been protected.)  Use of an IRA trust may be a means of protecting assets from creditors.  This is so because creditors can only access what an individual can access.  A trust is a essentially a relationship with respect to property, and ...

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The U.S. Supreme Court ruled in Burwell v. Hobby Lobby Stores, Inc., that regulations issued by the Department of Health and Human Services (HHS) were unlawful because they mandated contraception devices that could prevent an already fertilized egg from developing any further, in violation of The Religious Freedom Restoration Act (RFRA).  The RFRA prohibits “Government [from] substantially ...

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The U.S. Supreme Court held in Third Fifth Bancorp v. Dudenhoeffer that a “presumption of prudence” does not apply to company stock held in an employee stock ownership plan (ESOP).  Rather, the ordinary ERISA fiduciary duties apply, except there is no need to diversify assets.   Courts of Appeals had issued conflicting rulings on the subject.  Presumably, the decision relates to all ...

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