Sean K. McMahan of Alston & Bird LLP summarizes a recent U.S. court of appeals case, Edgar v. Avaya, Inc., et al.:

Edgar is an important development in the jurisprudence surrounding employee stock in 401(k) plans. It raises the bar for plaintiffs to survive motions to dismiss such cases, and it adds to the growing list of opinions that reject these claims.

In the unanimous panel opinion authored by Judge Julio M. Fuentes, the court holds that a deferential "abuse of discretion" standard applies to a 401(k) plan fiduciary’s decision to follow plan terms that require employer stock to be an investment option...

Read more at the Alston & Bird website (pdf).

The IRS and Treasury Department issued final regulations under Section 403(b) that provide updated guidance on 403(b) contracts and custodial accounts available to certain tax-exempt entities and employees of public schools.

These final regulations offer comprehensive guidance for the first time since 1964.

Here are some of the highlights:

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