Regional Vice President of Sales The Retirement Plan Company
|
Defined Benefit Combo Cash Balance Compliance Consultant Loren D. Stark Company (LDSCO)
|
Loan & Distribution Specialist AimPoint Pension
|
Compass
|
Bates & Company, Inc.
|
AimPoint Pension
|
“BenefitsLink continues to be the most valuable resource we have at the firm.”
-- An attorney subscriber
The Billion Dollar Typo: What Plans Need to Know Now About Scrivener's Errors Under ERISA
Boutwell Fay LLP Feb. 21, 2024 "What happens when the drafter of an ERISA plan makes an innocent error (a 'scrivener's error') that unintentionally increases benefits to plan participants by more than $1.6 billion?.... [Two] federal court decisions highlight the tension between the need to protect plan participants and the potential unfairness of allowing participants to receive a windfall just because of an innocent mistake, as well as the difference between correction by retroactive plan amendment under EPCRS and reformation of a plan document by a court under ERISA." |
SECURE 2.0 Required Interim Amendment Deadline Changes (Again)
KLB Benefits Law Group [Guidance Overview] Feb. 6, 2024 "When SECURE 2.0 was enacted in 2022, the deadline for qualified plans to retroactively adopt required amendments and receive anti-cutback protection was no later than the last day of the first plan year beginning on or after January 1, 2025. SECURE 2.0 also extended the remedial amendment period for the SECURE Act 1.0, CARES Act, and Relief Act required amendments to coordinate with this later deadline. The Notice now extends the deadline to December 31, 2026. The Notice specifically provides that required amendments adopted after this deadline will not receive anti-cutback relief." Tags: Retirement Plan Amendments • SECURE 2.0 |
IRS Extends Deadline for SECURE 2.0 Amendments and Provides Other Guidance
Trucker Huss [Guidance Overview] Jan. 24, 2024 "One of the most significant provisions in [Notice 2024-02] is an extension of the deadline for plan sponsors to adopt amendments required under SECURE 2.0.... The Notice also clarifies the Act's provision allowing employers to provide de minimis financial incentives to employees to encourage participation in a 401(k) or 403(b) plan." Tags: 401(k) Plans • Retirement Plan Amendments • SECURE 2.0 |
Defined Contribution Pre-Approved Plans Listing of Required Modifications and Information Package (LRM) (PDF)
Internal Revenue Service [IRS] [Official Guidance] Jan. 17, 2024 150 pages; January 2024. "This Information Package contains samples of plan provisions that have been found to satisfy certain specific requirements of the Internal Revenue Code, taking into account changes in the plan qualification requirements, regulations, revenue rulings, and other guidance ... including changes enacted by the [CARES Act] ... the [SECURE] Act of 2019 ... and ... the SECURE 2.0 Act of 2022 ... Such language may or may not be acceptable in different plans depending on the context in which used." [Also available: Redlined version] Tags: 403(b) Plans and Annuities • Retirement Plan Amendments |
Cash or Deferred Arrangement (CODA) Listing of Required Modifications and Information Package (LRM) (PDF)
Internal Revenue Service [IRS] [Official Guidance] Jan. 17, 2024 60 pages; January 2024. "This Information Package contains samples of plan provisions that have been found to satisfy certain specific requirements of the Internal Revenue Code, as amended through the SECURE 2.0 Act of 2022 ... These CODA LRMs are not revised to reflect certain changes to catch-up contribution limits and requirements enacted by SECURE 2.0, to the extent these changes are not included on the Cumulative List. This CODA LRM also does not include plan language for implementing pension-linked emergency savings accounts (PLESAs) ... added by Section 127 of SECURE 2.0." [Also available: Redlined version] Tags: 403(b) Plans and Annuities • Retirement Plan Amendments |
Employee Stock Ownership Plan Pre-Approved Plans Listing of Required Modifications and Information Package (LRM) (PDF)
Internal Revenue Service [IRS] [Official Guidance] Jan. 17, 2024 45 pages; January 2024. "[Rev. Proc. 2015-36] expanded the pre-approved program to cover employee stock ownership plans (ESOPs) and set forth certain requirements to be a pre-approved ESOP.... This information package contains samples of plan provisions that satisfy certain requirements of the Code applicable to ESOPs. Such language may or may not be acceptable in specific plans depending on the context in which used. To expedite the review process, plan sponsors are encouraged to use the language in this package." Tags: 403(b) Plans and Annuities • Retirement Plan Amendments |
IRS Notice Clarifies Several Provisions of SECURE 2.0
Slevin & Hart, P.C. [Guidance Overview] Jan. 15, 2024 "[Notice 2024-02] provides an additional year for plans to adopt plan amendments pursuant to the Act. As a result, non-governmental qualified plans must be amended by December 31, 2026, while applicable collectively bargained plans have until December 31, 2028 to make the required amendments and governmental plans must be amended by December 31, 2029." Tags: 401(k) Plans • Retirement Plan Administration • Retirement Plan Amendments • SECURE 2.0 |
IRS Issues 2023 Cumulative List for Defined Contribution Pre-Approved Plans (PDF)
Thomson Reuters / EBIA [Guidance Overview] Jan. 5, 2024 "[I]tems specific to 401(k) plans include: [1] changes made to the hardship distribution rules under the Bipartisan Budget Act of 2018, [2] final hardship distribution regulations issued in 2019, [3] the establishment of starter 401(k) plans under the SECURE 2.0 Act, [4] changes to rules relating to long-term, part-time employees made by the SECURE Act, the SECURE 2.0 Act, and proposed regulations upon which taxpayers may rely, and [5] changes to the rules for SIMPLE 401(k) plans made by the SECURE 2.0 Act." Tags: 401(k) Plans • Retirement Plan Amendments • SECURE 2.0 • SECURE Act |
After Empty RA List, IRS Delays Amendment Deadlines for New Laws
Mercer [Guidance Overview] Dec. 28, 2023 "For the second year in a row, the IRS Required Amendments (RA) List (Notice 2023-79) identifies no statutory or regulatory changes for individually designed qualified and Section 403(b) retirement plans.... IRS Notice 2024-2 extends the deadline to at least Dec. 31, 2026, for required and discretionary amendments related to recent legislation, including the SECURE 2.0 Act ... However, employers making unrelated discretionary changes in 2025 generally will still need to amend their plans by the end of the 2025 plan year[.]" Tags: Retirement Plan Amendments • Retirement Plan Design • SECURE 2.0 |
Pre-Approved Plan Design and Compliance
Venable LLP, via LexisNexis Practical Guidance [Guidance Overview] Dec. 27, 2023 18 pages. "This practice note describes the requirements for implementing pre-approved plans and advantages, disadvantages, and best practices concerning the implementation and legal review of pre-approved plans." |
Text of IRS Notice 2024-02: Miscellaneous Changes Under the SECURE 2.0 Act of 2022 (PDF)
Internal Revenue Service [IRS] [Official Guidance] Dec. 20, 2023 81 pages. "This notice provides guidance in the form of questions and answers with respect to certain provisions of ... the SECURE 2.0 Act of 2022. Specifically, this notice addresses issues under the following sections of the SECURE 2.0 Act:
"This notice is not intended to provide comprehensive guidance as to the specific provisions of the SECURE 2.0 Act, but rather is intended to provide guidance on discreet issues to assist in commencing implementation of these provisions." Tags: Retirement Plan Amendments • SECURE 2.0 |
Text of IRS Notice 2024-03: 2023 Cumulative List of Changes in Plan Qualification Requirements for Defined Contribution Qualified Pre-Approved Plans (PDF)
Internal Revenue Service [IRS] [Official Guidance] Dec. 20, 2023 18 pages. "The 2023 Cumulative List will assist providers applying to the [IRS] for opinion letters for the fourth remedial amendment cycle for defined contribution qualified pre-approved plans (Cycle 4) under the IRS's pre-approved plan program. Cycle 4 began on February 1, 2023. The 2023 Cumulative List identifies recent changes in the qualification requirements of the Internal Revenue Code that were not taken into account during the first three remedial amendment cycles for defined contribution qualified pre-approved plans and that will be taken into account by the IRS with respect to the form of a plan submitted to the IRS for Cycle 4. The Cycle 4 submission period begins on February 1, 2024, and ends on January 31, 2025." |
IRS to Hold Virtual Meeting for Pre-Approved Plan Providers and Mass Submitters (PDF)
Internal Revenue Service [IRS] [Official Guidance] Dec. 14, 2023 "The IRS is hosting a virtual meeting with pre-approved plan providers and mass submitters to discuss technical and procedural requirements for the upcoming 4th cycle 401(a) defined contribution pre-approved plan submission period. When: Wednesday, January 17, 2024 ... This meeting is intended for those providers and mass submitters who draft pre-approved plans and plan to apply for a 4th cycle opinion letter under Revenue Procedure 2023-37." |
Text of IRS Notice 2023-79: 2023 Required Amendments List for Individually Designed Qualified and Section 403(b) Plans (PDF)
Internal Revenue Service [IRS] [Official Guidance] Dec. 8, 2023 "Part A. Changes in requirements that generally would require an amendment to most plans or to most plans of the type affected by the change. None. "Part B. Other changes in requirements that may require an amendment. None." |
Checking It Twice: End of Year Actions for Benefit Plans (PDF)
Eversheds Sutherland [Guidance Overview] Dec. 5, 2023 "[1] Long-term part-time administrative changes ... [2] SECURE 2.0 Optional changes.... [3] Pre-approved plans with discretionary match ... [4] Qualified retirement plan routine year-end maintenance ... [5] Gag clause prohibition compliance ... [6] [MHPAEA] comparative analysis ... [7] Cafeteria plan 'family glitch' amendment." Tags: Health Plan Administration • MHPAEA • Retirement Plan Administration • Retirement Plan Amendments |
IRS Issues Comprehensive Guidance on Pre-Approved Retirement Plans (PDF)
Thomson Reuters / EBIA [Guidance Overview] Dec. 1, 2023 "[1] End of remedial amendment period for timely adopted interim amendments.... [2] End of remedial amendment period for discretionary amendments made by adopting employers.... [3] Failure of adopting employer to timely adopt interim amendment.... [4] Starter 401(k) deferral-only plans.... [5] Qualified pre-approved plan cycles.... [6] Provider applications for opinion letters.... [7] Conformity with Section 403(b) pre-approved plan rules." |
Key Changes Made by New IRS Guidance for Pre-Approved Plans
American Retirement Association [ARA] [Guidance Overview] Nov. 29, 2023 "The guidance ... in [Rev. Proc. 2023-37] on qualified and 403(b) pre-approved plans made some significant changes in order to conform, clarify, and update the rules.... [1] Changes that apply to all pre-approved plans ... [2] Changes for qualified pre-approved plans ... [3] 403(b) pre-approved plans ... [4] Remedial amendment cycles ... [5] Effective date." |
Text of IRS Publication 794: Favorable Determination Letter (PDF)
Internal Revenue Service [IRS] [Guidance Overview] Nov. 22, 2023 4 pages; rev. Nov. 2023. "This publication explains the significance of a favorable determination letter, points out some features that may affect the tax status of an employee retirement plan and nullify the determination letter without specific notice from us, and provides general information on the reporting requirements for the plan." Tags: Retirement Plan Administration • Retirement Plan Amendments |
Text of IRS Rev. Proc. 2023-37: Qualified Pre-Approved Plans and Section 403(b) Pre-Approved Plans (PDF)
Internal Revenue Service [IRS] [Official Guidance] Nov. 21, 2023 81 pages. "This revenue procedure sets forth the rules regarding Qualified Pre-approved Plans and Section 403(b) Pre-approved Plans, and combines, conforms, clarifies, and updates rules for Qualified Pre-approved Plans and Section 403(b) Pre-approved Plans previously set forth in prior revenue procedures ... Combining these prior revenue procedures allows for the rules for the different types of Pre-approved Plans to be more easily conformed to each other, to the extent practicable. These rules for Pre-approved Plans fall into three broad categories: [1] Remedial Amendment Periods, the Remedial Amendment Cycle system, and plan amendment deadlines ... [2] Provider application for an Opinion Letter ... [3] Adopting Employer application for a determination letter ... 'Pursuant to this revenue procedure, the Submission Period for a Provider of a defined contribution Qualified Pre-approved Plan to submit an application for a Cycle 4 Opinion Letter begins on February 1, 2024, and ends on January 31, 2025." |
Text of IRS Request for Comments on Revised Form 5307
Internal Revenue Service [IRS] [Official Guidance] Nov. 2, 2023 "The IRS is soliciting comments concerning Form 5307, Application for Determination for Adopters of Modified Nonstandardized Pre-Approved Plans.... The form was revised to eliminate features of the determination letter program that are of limited utility to plan sponsors in comparison with the burdens they impose. The form was also revised to enable electronic submission on Pay.gov." Tags: Retirement Plan Administration • Retirement Plan Amendments |
IRS Determination Letter Program Opens for 403(b) Plans
McDermott Will & Emery [Guidance Overview] Oct. 25, 2023 "Since 2009, most 403(b) plans have required a written plan document, but plan sponsors could not obtain the IRS's opinion that the form of the plan follows the Code's requirements. 403(b) plan sponsors can now obtain an initial determination letter under the IRS program.... Determination letter applications are limited to an initial review of individually designed 403(b) plans (including most long-standing 403(b) plans that could not apply previously) and terminating 403(b) plans." Tags: 403(b) Plans and Annuities • Retirement Plan Amendments |
2023 Year End: SECURE 2.0 Operational Compliance, But Plan Amendments Not Yet Required
Segal [Guidance Overview] Oct. 24, 2023 "This year ... no amendments are required to comply with [SECURE 2.0] or any other legislative action or Treasury Department guidance. There are also no required changes on the IRS's Required Amendments List or its Operational Compliance List. However, because SECURE 2.0 retroactive corrections require operational compliance, plans are likely to have to implement operational changes in 2024, along with those already applicable in 2023. Even though no amendments are required, some plans may want to make amendments." Tags: Retirement Plan Amendments • SECURE 2.0 |
Now Is the Time to Adopt Discretionary and Required 2023 Amendments
Calfee, Halter & Griswold LLP Oct. 23, 2023 "Fortunately for plan sponsors, the list is short for required amendments to adopt before the 2023 year-end.... The 2022 RA List does not list any required amendments for which December 31, 2024, would be the last day of the remedial amendment period. Some of the changes made by SECURE Act 2.0 to qualified plans and 403(b) plans will become effective in 2024, however." |
2023 Retirement Plan Year-End Amendments and Operational Compliance
Groom Law Group [Guidance Overview] Oct. 13, 2023 "As the end of 2023 approaches, it's again time for plan sponsors to review their plan documents and plan operations to ensure compliance with increasingly complex qualification requirements and moving deadlines. While there are no mandatory plan amendments due this year, plan sponsors must remain diligent about discretionary amendment deadlines, operational compliance with changes in law, and ensuring later-adopted plan amendments accurately reflect plan operations." Tags: Retirement Plan Administration • Retirement Plan Amendments |
Retirement Plan Sponsors Have Few 2023 Year-End Amendments
Mercer [Guidance Overview] Oct. 9, 2023 "This article covers the short list of amendments due by Dec. 31, 2023, and looks ahead to 2025, when many employers will need to amend their plans to comply with several significant law changes enacted in recent years." Tags: Retirement Plan Amendments • SECURE 2.0 |