Judge Predicts Appeal in Cuomo Case against
Morris
October 16, 2009 (PLANSPONSOR.com) - A New York
criminal court judge said New York Attorney General Andrew
Cuomo's fraud charges against Henry Morris in the state's
pension kickback case partly rested on a "novel" use of the
state securities law.
New York’s 1920s securities law, called the Martin Act,
gives the state attorney general broad powers over
financial fraud. However, Judge Lewis Bart Stone, in a
courtroom conference with the prosecuting and defense
attorneys, pointed out that Henry Morris, former
comptroller Alan Hevesi’s political adviser and chief
fund-raiser, did not work for the state, according to
Reuters.
Stone said this lack of a direct relationship may raise
questions about whether Morris was required to disclose the
fees he was paid from investment firms which sought
business from the state pension fund. “This is real judge
stuff because (Henry) Morris was not a state employee,”
said Stone, according to Reuters. “This is very interesting
to me– that will be an issue that sooner or later will get
resolved.”
Stone predicted his decision might eventually be
appealed to the state’s top court.
Cuomo’s two-year investigation has been joined by the
U.S. Securities and Exchange Commission and has sparked
probes in other states, including New Mexico and
California, as well as within the California Public
Employees Retirement System (see
CalPERS to Examine Fees Paid to
Adviser
).
The lawyers for Morris and David Loglisci, the
former state pension investment officer who has also been
charged (see
Former NY Common Fund CIO Charged by
SEC
), say their clients are innocent.
October 15, 2009 (PLANSPONSOR.com) - The Internal
Revenue Service has announced cost of living adjustments
applicable to dollar limitations for pension plans and other
items for Tax Year 2010.
The limitations that are adjusted by reference to
Section 415(d) of the Internal Revenue Code will remain
unchanged for 2010 because the cost-of-living index for the
quarter ended September 30, 2009, is less than the
cost-of-living index for the quarter ended September 30,
2008, the IRS explained.
Effective January 1, 2010, the limitation on the annual
benefit under a defined benefit plan under Section
415(b)(1)(A) remains unchanged at $195,000. For
participants who separated from service before January 1,
2010, the limitation for defined benefit plans under
Section 415(b)(1)(B) is computed by multiplying the
participant’s compensation limitation, as adjusted
through 2009, by 1.0000.
The annual additions limitation for defined contribution
plans under Section 415(c)(1)(A) remains unchanged for 2010
at $49,000. The limitation under Section 402(g)(1) on the
exclusion for elective deferrals described in Section
402(g)(3) also remains unchanged at $16,500.
The annual compensation limit under Sections 401(a)(17),
404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) remains
unchanged at $245,000, and the dollar limitation under
Section 416(i)(1)(A)(i) concerning the definition of key
employee in a top-heavy plan remains unchanged at
$160,000.
The limitation used in the definition of highly
compensated employee under Section 414(q)(1)(B) remains
unchanged at $110,000.
The dollar limitation under Section 414(v)(2)(B)(i) for
catch-up contributions to an applicable employer plan other
than a plan described in Section 401(k)(11) or Section
408(p) for individuals aged 50 or over remains unchanged at
$5,500, while the dollar limitation under Section
414(v)(2)(B)(ii) for catch-up contributions to an
applicable employer plan described in Section 401(k)(11) or
Section 408(p) for individuals aged 50 or over remains
unchanged at $2,500.
For taxable years beginning in 2010, the term "high
deductible health plan" as defined in § 220(c)(2)(A)
of the Internal Revenue Code means, for self-only coverage,
a health plan that has an annual deductible that is not
less than $2,000 and not more than $3,000, and under which
the annual out-of-pocket expenses required to be paid
(other than for premiums) for covered benefits do not
exceed $4,050.
The term "high deductible health plan" means,
for family coverage, a health plan that has an annual
deductible that is not less than $4,050 and not more than
$6,050, and under which the annual out-of-pocket expenses
required to be paid (other than for premiums) for covered
benefits do not exceed $7,400.
The Internal Revenue Service explained in a press
release that, by law, the dollar amounts for a variety of
tax provisions must be revised each year to keep pace with
inflation. As a result, more than three dozen tax benefits
are subject to inflation adjustments each year, but because
recent inflation factors have been minimal, many of these
benefits will remain unchanged or change only slightly for
2010.
AGI Limit Impacts
The IRS said that the adjusted gross income limitation
under Section 25B(b)(1)(A) for determining the retirement
savings contribution credit for taxpayers filing as head of
household is increased from $24,750 to $25,125, though the
limitation under Section 25B(b)(1)(B) remains unchanged at
$27,000, and the limitation under Sections 25B(b)(1)(C) and
25B(b)(1)(D), remains unchanged at $41,625.
Additionally, the adjusted gross income limitation under
Section 25B(b)(1)(A) for determining the retirement savings
contribution credit for all other taxpayers is increased
from $16,500 to $16,750, while the limitation under Section
25B(b)(1)(B) remains unchanged at $18,000, and the
limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D),
also remains unchanged at $27,750.
The deductible amount under § 219(b)(5)(A) for an
individual making qualified retirement contributions
remains unchanged at $5,000.
IRA Income Limits
The applicable dollar amount under Section
219(g)(3)(B)(i) for determining the deductible amount of an
IRA contribution for taxpayers who are active participants
filing a joint return or as a qualifying widow(er) remains
unchanged at $89,000.
However, the IRS said that the applicable dollar amount
under Section 219(g)(3)(B)(ii) for all other taxpayers
(other than married taxpayers filing separate returns) is
increased from $55,000 to $56,000.
Additionally, the applicable dollar amount under Section
219(g)(7)(A) for a taxpayer who is not an active
participant but whose spouse is an active participant is
increased from $166,000 to $167,000.
The adjusted gross income limitation under Section
408A(c)(3)(C)(ii)(I) for determining the maximum Roth IRA
contribution for married taxpayers filing a joint return or
for taxpayers filing as a qualifying widow(er) is increased
from $166,000 to $167,000, although the adjusted gross
income limitation under Section 408A(c)(3)(C)(ii)(II) for
all other taxpayers (other than married taxpayers filing
separate returns) remains unchanged at $105,000.
Details on the tax benefits changes for 2010 can be
found in
Rev. Proc. 2009-50
.