Supreme Court Decision Upholds Surtax on Investment Income

The Supreme Court's decision that the Affordable Care Act is largely constitutional also affirmed a 3.8% capital gains surtax for certain taxpayers. Assuming Congress extends the current rate of 15%, set to expire on December 31, the capital gains tax rate for some taxpayers will rise to 18.8%.

Supreme Court Hears Case on Standing of Individual Plan Participants

In an important case, the Supreme Court has started hearing arguments in a case concerning the standing of individual participants in a defined contribution retirement plan to sue for denied benefits rather than having to sue on behalf of the entire plan. The case, James LaRue v.

Supreme Court Hears Oral Arguments on Presumption of Prudence

On April 2, the Supreme Court heard arguments in Fifth Third Bancorp v. Dudenhoeffer, U.S., No. 12-751, concerning the so-called Moench presumption, which has been adopted by several circuit courts and is often used as a basis to dismiss stock-drop suits.

Supreme Court Likely to Hear ESOP Indemnification Case

On January 9, the Supreme Court invited the solicitor general to file a brief in a case regarding ESOPs, indicating the Court's interest in hearing the case. The case concerns whether ERISA permits courts to order one fiduciary to indemnify another. In the case, Fenkell v.