Search the Community
Showing results for tags 'Damages'.
Found 1 result
-
I have a profit sharing plan that terminated and paid a participant a lump sum, without allowing him to elect to roll over his account to an IRA. This would seem to be a very common issue, where a plan loses its tax qualified status and the participant's benefits are no longer tax deferred, but taxed immediately. Obviously the whole point of society spending trillions of dollars on qualified retirement plans is to defer taxes on the income. When that benefit is lost, the participant suffers substantial damages. My question is: Is there any authority as to how the claim for damages would be calculated? Since the amount of damages is not fixed because the benefits will still be subject to tax at some later time, what variables and estimates are used to calculate the monetary damages resulting from immediate taxation of benefits, rather than deferral? Can someone provide an authority of this issue?
