BizSugar.com › Taxes › Advisors Staring at a New ‘Slew' of Litigation From Small-Business Clients

Financial advisors who have sold certain types of retirement and other benefit plans to small businesses might soon be facing a wave of lawsuits; unless Congress decides to take action soon. For years, advisors and insurance brokers have sold the 412(i) plan, a type of defined-benefit pension plan, and the 419 plan, a health and welfare plan, to small businesses as a way of providing such benefits to their employees, while also receiving a tax break. However, in 2004, Congress changed the law...