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March 30, 2011

Employer must repay contributions plus interest to SIMPLE IRA


Judge orders Minnesota-based Copy Cat Business Systems and former owners to repay more than $13,000 to company’s SIMPLE IRA plan

A federal district court in Minneapolis has granted the U.S. Department of Labor’s motion for summary judgment requiring a business and its former owners to repay $13,218.76 in employee contributions and lost interest owed to the company’s savings incentive match plan for employees individual retirement account (SIMPLE IRA). Allegedly, the defendants failed to forward contributions to the plan and used plan assets to pay the company’s general operating expenses. The court rejected one of the defendant‘s defense that he was not named as a fiduciary to the plan. The court cited case law that imposes “functional” fiduciary liability on individuals who “are not named as fiduciaries but nonetheless exercise actual control over plan assets.”

For details and a copy of the Department of Labor’s (DOL)/ Employee Benefits Security Administration (EBSA) news release, see this url

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.


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