IRS Announces Change to the
Amend Your Cafeteria Plan Now
To Allow for a $500 Rollover
The IRS has announced that Cafeteria Plans (also known as 125 Plans, FSAs and Flexible Spending Accounts) can permit up to $500 to be "rolled over" into the following year - softening the "use it or lose it" rule that had been the hallmark of these accounts.
In order to allow for this rollover, a plan has to be amended.
Items to Consider
- To take advantage of the rollover, your plan must be amended.
- If your plan provides for a "grace period" allowing the account balance for one plan year to be spent in the first few months of the following year, this $500 rollover cannot be used. You may want to amend your plan to eliminate the grace period; if so, the amendment to remove this provision would have to be done by year end.
- The rollover is limited to $500 each year and cannot be accumulated.
Next Steps to Take
- Contact your provider or administrator immediately if you want to implement this change for the 2013 Plan Year.
- If your Cafeteria Plan was drafted by Strauss Troy, and you have not received an e-mail, please contact Claudia.
- Click here for a copy of IRS Notice 2013-71.
Claudia Allen's practice is
|Strauss Troy Attorney Claudia Allen|
concentrated in the areas of employee benefits, qualified retirement plans and employment law. She is a frequent lecturer and author of many articles in areas of qualified retirement plans, deferred compensation, employment law and other employee benefits.
For assistance amending
your Cafeteria Plan, or with questions:
Contact Claudia at 513.629.9462
Center for Respite Care Celebrates
Strauss Troy Attorney Larry Neuman
Co-Chairs CRC's 2013 Transformation Awards
Ed Paul (l), Jake Paul, Oscar Robertson, Larry Neuman and Carol Neuman During the 2013 Transformation Awards Ceremony
Since opening its doors in 2003, the Center for Respite Care has assisted over 1,000 sick and injured homeless individuals on their journey to restored health and self-sufficiency.
On the evening of October 17th, the Center celebrated 10 years of transforming lives by honoring three others who have made a significant difference in the lives of our community. The recipients of the 2013 Transformation Awards are:
The event, which took place at Xavier University's Schiff Conference and Banquet Center, included a reception and dinner, entertainment and the awards ceremony.
The 2013 Transformation Awards raised more than $86,000 to continue the good work of the Center.
Since 2003, the Center has been providing quality, holistic medical care to people in the Tri-state region who are homeless and need a safe place to heal and break the cycle of homelessness. The Center for Respite Care has had a profound effect on reducing healthcare costs in the city. CRC's cost of operation is 5% of the cost of hospital care, thereby resulting in a savings to the community of $10 million annually.
To learn more about how you can make a difference
in the lives of the homeless of our community, visit here.
Strauss Troy represented Ferguson Enterprises, which provided nearly $50,000 in high-end kitchen appliances, lighting fixtures and plumbing fixtures to a multi-million dollar home being constructed in Loveland, Ohio.
Near the end of the project, a dispute arose between the owners and the general contractor constructing the house, Pinnacle Building Group. The owners refused to make the final payments on the house, and the general contractor went out of business, leaving several sub-contractors and material suppliers owed money.
The sub-contractors and material suppliers had substantial unpaid invoices, yet the homeowners claimed that they didn't owe the sub-contractors. Legal action was the next step.
Ferguson, along with three other sub-contractors, pursued claims against the homeowners for unjust enrichment.
Three Elements to Prove Unjust Enrichment:
- The plaintiff must have provided the defendant with something of value while expecting compensation in return.
- The defendant must have acknowledged, accepted and benefited from whatever the plaintiff provided.
- The plaintiff must show that it would be inequitable or unconscionable for the defendant to enjoy the benefit of the plaintiff's actions without paying for it.
Before trial, the court ruled that, under Ohio law, payment in full by a homeowner to the general contractor could be used as a defense to both lien claims and unjust enrichment claims asserted by the unpaid subcontractors and material suppliers.
At trial, there was no dispute that the owners had paid more than $2 million to the general contractor. The key consideration was the total amount, or the "contract price," of the contract between the owners and the general contractor because the contract was a "cost-plus" contract, which contained no total fixed dollar amount.
Among other things, Strauss Troy showed that the owners realized they were exceeding the general contractor's budget when they selected high-end appliances, plumbing and lighting fixtures for their house from Ferguson.
After four hours of deliberation, the jury concluded that the homeowners had not paid the general contractor in full. Ferguson was awarded the full amount of its claim, plus prejudgment interest, totaling more than $50,000.
Strauss Troy Attorney Brian O'Connell
Brian O'Connell is a member of the Strauss Troy litigation practice group. He focuses his practice in the areas of complex commercial litigation, construction litigation, intellectual property litigation, products liability and tort law.
Contact Brian at 513.629.9451 or
Apple Takes Another Bite
Out of Samsung
Judge Orders Additional $290 Million in Damages
Apple and Samsung continue to litigate allegations of patent infringement in the United States and in international courts as well. In the United States, the momentum seems to have shifted recently in Apple's favor. Both companies recently convinced the U.S. International Trade Commission that the other company had infringed the others patents, leading to bans of the others products. However, the Obama administration ultimately overruled the ban on Apple products, while upholding the ban on Samsung devices.
In the most recent development, a jury said that Samsung would have to pay Apple an additional $290 million in damages for having sold infringing products. Prior to this most recent damages verdict, a jury determined last year that Samsung had infringed on a series of Apple patents and needed to pay more than $1 billion in damages. But the judge, Lucy Koh of the Federal District Court for Northern California, vacated $450 million of the original award, saying it was unclear how the jury had calculated that portion.
The most recent damages retrial, also overseen by Judge Koh, was granted to ascertain whether Samsung was obligated to pay any of the $450 million that was previously vacated. During its opening statements in the retrial, Apple asked for $379 million in additional damages, while Samsung said it only owed an additional $52 million. In the retrial, lawyers for Apple and Samsung focused on how to calculate the damages: in lost profits or in royalties. In addition to the additional $290 million in damages, the remaining approximately $600 million in damages was left intact by Judge Koh, leaving Samsung liable for a total of $890 million.
Kevin Sprecher leads Strauss Troy's Intellectual Property practice. His work emphasizes all aspects of intellectual property law including U.S. and international patent prosecution, portfolio management and counseling, as well as licensing, internet issues, brand development, U.S. and international trademark prosecution and portfolio management, regulatory compliance, antitrust, trade secrets, due diligence and general corporate law.
Strauss Troy Attorney Kevin Sprecher
Strauss Troy Attorney Mark Berliant is celebrating his 30th year of being named among The Best Lawyers in America� 2014.
Mark practices in the areas of real estate development, federal estate and gift taxation, probate and family planning, and succession. He began his career as a Tax Trial Attorney for the Internal Revenue Service.
Mark served as president of Strauss Troy from 1984-1993. He is former chairman of the board and former chair of the firm's Tax Planning | Compliance practice group.
"I have been honored to work alongside Mark for 33 years," said Jim Heldman, p
resident of Strauss Troy. "In fact, my father was a client of his long before I started with the firm. He is a brilliant legal mind and is very deserving of this distinguished recognition."
Strauss Troy Attorney Joy Hall served as a panelist at the 2013 Tax Institute, presented by the Cincinnati Bar Association (CBA) Taxation Committee. The event was held Friday, December 6 and Saturday, December 7 at the Cincinnati Bar Center, 225 East Sixth Street.
Joy's session discussed Tax Controversy. She served on the planning committee for the 54th annual Southwestern Ohio Tax Institute alongside the following: Joel Brant of Katz Teller Brant & Hild (Chair), Javan Kline of Frost Brown Todd and Jill Scherff of Dinsmore & Shohl.
The Cincinnati Bar Association Taxation Committee promotes the CBA within the field of taxation. The section regularly schedules and conducts educational programs and networking opportunities for the members of the section and all members of the association, monitors developments relevant to tax law and relays all pertinent information to its members.
Joy focuses her work in the areas of tax controversy, tax audit and criminal tax issues. Her practice includes federal and state tax litigation, refund issues, criminal tax indictments/trials, Offers in Compromise, audits and innocent spouse filings.
Strauss Troy Attorneys and Staff:
Committed to the Communities in
Which We Live and Work
After serving a two-year term, Strauss Troy Attorney Patrick Newton
will be stepping down as president of Give Back Cincinnati. He
will be continuing his service to the organization by continuing on the board as the chair for capacity.
Founded in 2000 by a small group of friends, GBC has grown to over 5,000 members. The group's mission is to enhance its communities by engaging young volunteers and developing leaders by providing unique community engagement opportunities.
Outgoing president Patrick Newton had this to say of his work with GBC: "The energy and passion that each member displays for bettering our community during our volunteer events continually inspires me. GBC's focus is to engage our membership base with the Greater Cincinnati community and give them meaningful opportunities to make a difference while staying true to our guilt-free model of volunteering. I look forward to continuing the great work of the organization on the board and continuing our mission of developing tomorrow's leaders."
Strauss Troy Attorney
Philomena Ashdown serves on the board of directors for Bayley Life. She is also the co-chair of the Mother Margaret George Society that offers a unique way to honor living loved ones or deceased individuals who resided at Bayley, were members of Bayley Adult Day Program or whose lives had been touched by the caring outreach of Bayley.
Founded by the Sisters of Charity of Cincinnati in 1990, Bayley is a continuing care retirement community located in Delhi. Their mission is to strive to provide compassion and quality of life to those they serve.
As we prepare to celebrate the holidays, others wonder how they will feed their families. Strauss Troy is proud to continue its commitment to the community by again sponsoring several area families to help make their holidays brighter. With funds raised through "dress-down Fridays" and other attorney and staff donations, these underprivileged families from Newport, KY will have warm coats and gloves, gifts to open and a warm holiday meal to enjoy.
MAD Team member Liz Mason helped deliver the gifts to last year's St. Vincent de Paul families. In her thank you to the Strauss Troy family, she wrote, "One of the mothers just kept saying to us, 'Thank you, thank you, thank you.' and 'Without you all, we wouldn't have had a Christmas. We just couldn't do it.' They were all VERY grateful for your gifts and kindness."
The firm's Make a Difference Team represents Strauss Troy's belief that we should reach out to the community and make a difference in any way that we can. To learn more about our commitment to the community, visit here.
Trusted Integrity.__________________________ Celebrating its 60th anniversary of serving the Greater Cincinnati | Northern Kentucky community, Strauss Troy has stood apart from the competition since 1953 by providing the highest-quality legal services in the most personalized, prompt and economical manner possible. As a full-service law firm, Strauss Troy has diverse expertise and a history of proven success. No matter what issue you face, the firm has the right professionals, working together as a team, to get you the answers you need quickly and affordably. Strauss Troy's Areas of Practice
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