New York Asset Protection News

Labor Department Resolves Pension Law Violations To Protect Assets Of Minnesota 401(k) Plan

Minneapolis, Minnesota - The U.S. Department of Labor has obtained a consent order resolving violations of the Employee Retirement Income Security Act (ERISA) related to delinquent employee contributions and loan repayments to the Granse & Associates Inc. 401(k) profit sharing plan in Lakeville, Minnesota. After the department sued the company and plan trustees, the defendants restored $182,126.85 to the plan.

The department’s lawsuit alleged that Gordon E. Granse and Wayne A. Nelson violated ERISA by failing to timely remit employee contributions owed to the plan for intermittent periods from April 2003 through April 2005. The money was used for operating expenses and remained commingled with the company’s general assets.

Granse & Associates, a Minnesota corporation, sells and markets plumbing fixtures throughout the north central United States. As of February 2005, there were 288 participants in the 401(k) plan and over $1 million in assets.

“The department is committed to doing everything we can to ensure that plan participants receive the money owed to them,” said Steven Eischen, director of the Kansas City regional office of the Employee Benefits Security Administration (EBSA), which investigated the case.

Employers with similar problems who are not yet the subject of an investigation by EBSA may be eligible to participate in the department’s Voluntary Fiduciary Correction Program (VFCP). Participation in the program requires employers to correct any violations of the retirement law but allows them to avoid EBSA enforcement actions and civil penalties as well as any applicable excise taxes.

In fiscal year 2005, EBSA achieved monetary results of $1.7 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Contact a New York Asset Protection lawyer today and get a free consultation!

	Did You Know?
	LLC envelope offers substantial advantages over other entities LLC envelope offers substantial advantages over other entities, there are at least five common circumstances when a tax regime other than an S corporation may be more appropriate: 1) the business cannot qualify as an S corporation; 2) the one-class-of-stock limitation for S corporations cannot accommodate certain business terms agreed to by the parties; 3) the business involves appreciating assets (i.e., assets that have, or are likely to have, a fair market value in excess of basis), such as real estate; 4) the business has considerable debt and the owners anticipate significant losses; and 5) the wage-reduction tax strategy explained previously will not benefit the owners because either the primary income of the business is excluded from self-employment tax or, in the case of newly formed companies, one or more employee-owners already receive aggregate wages or self-employment income from an existing business in an amount which approaches the taxable wage base limitation