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Retirement Plans Newsletter October 30, 2018 |
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Jobs
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Webcasts, Conferences Benefits Brief: Nuts and Bolts on a Management Buyout
Plan Sponsor Attitudes - Trends in the 401(k) Marketplace
FASB Update and Working with Auditors
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Discussions |
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This Newsletter:
BenefitsLink Health & Welfare Plans Newsletter:
Message Boards Digest:
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Retirement Plan Administrator|
[Guidance Overview]
Recent Updates to the IRS Section 402(f) Tax Notice for Rollover-Eligible Distributions "The updated notices are not a complete overhaul of the 2014 model notices but reflect changes made since that time, including, by way of example ... [1] Information regarding self-certification if a participant misses the 60-day rollover deadline ... [2] Changes relative to qualified plan loan offsets ... [3] Notice to participants that they may have special rollover rights if they were affected by a federally declared disaster (or similar event)."
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[Advert.]
Now is a great time to join Worldwide Employee Benefits Network (WEB)
Worldwide Employee Benefits Network helps me connect with thought leaders in the Benefits Industry. Join WEB today at www.webnetwork.org. |
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What Costs Can be Covered Under a Hardship Distribution for Purchase of a Primary Residence? "In order to qualify for a hardship distribution, the amount requested must be necessary to cover costs directly related to the purchase itself and not improvements to the home after purchase. However, there are some nuances to consider[.]"
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Important Facts About IRAs (PDF) 16 pages. "[1] IRAs are the largest pool of assets in the US retirement market.... [2] IRAs are predominantly held by moderate-income households.... [3] Although few traditional IRA investors make contributions, those who do display persistence.... [4] Rollovers from employer-sponsored retirement plans have fueled growth in IRAs.... [5] IRA withdrawals are infrequent and mostly retirement related, and most households consult a financial professional when taking withdrawals."
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Are We on the Verge of the Next Big Pension Bill? "In this article, [the authors] briefly discuss how [the Retirement Enhancement and Savings Act (RESA)] came about in the Senate and summarize the provisions that made it into the Family Savings Act. [They then] discuss the Family Savings Act and dive into the provisions that do not overlap with RESA. Finally, [they] conclude by discussing the factors that will be most relevant in determining whether a retirement and savings package can get signed into law by the end of this year."
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Reasons Why the Time is Right to Annuitize a Defined Benefit Plan "De-risk your plan at optimal rates ... Reduce your PBGC costs ... Reduce your overall liability ... Reduce your plan administration costs ... Capitalize on investment gains."
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[Advert.]
J.P. Morgan Retirement Link: Turning retirement resolutions into reality
Our 2018 survey finds that although DC plan participants are making progress and gaining confidence overall, more work is needed to: understand the state of the participant, motivate participants to save, and streamline investment decision-making. |
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Getting Your Participants Safely Down Drawdown Mountain "More and more of your participants are nearing retirement ... You can help your participants ... by ensuring your plan is 'retiree-friendly.' Participants benefit from your fiduciary oversight. The rigor you take with their best interests in mind creates a safe haven of sorts. And you can be more confident that your longtime employees are in good hands during retirement."
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These Retirees Are Pushing to Save Their Pensions "The trio first got together, along with several other Teamsters, in a coffee shop in St. Paul, Minn. in 2014. They each put $20 into the kitty and started a grassroots effort called Defend Our Pensions-Minnesota. The organization works with similar groups in other states, including mine workers and iron workers also worried about losing their promised pensions."
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[Opinion]
"[T]he existing guidance in Section 3.7 implies that the Social Security actuary should project future expected long-range actuarial balances as part of the Program's annual valuation. Such a projection would be helpful to the general public and to members of Congress in assessing the program's long-range financial adequacy. Therefore, [the author believes] the guidance in this section should not be deleted, as proposed.... [Further, the] standard should discourage use of the term, 'Sustainable Solvency.' "
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Executive Compensation |
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Tax Code Section 162(m): Options for Grandfathering Protection "The statutory and common law in many states includes doctrines of contractual interpretation and enforcement such as the implied covenant of good faith and fair dealing, promissory estoppel and detrimental reliance, and a requirement to interpret contracts so as to avoid illusory promises. Companies and their counsel must consider these state law doctrines, as directed by Notice 2018‑68 when evaluating whether a legally binding right exists under applicable law."
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Selected Discussions |
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Paying Lump Sums After Window Expires Is there a reasonable time frame you can allow for a plan sponsor to pay out a lump sum after a temporary window has expired? Let's say someone claims their packet was lost and they had to resend, does a sponsor have to honor the payment, say within 30 days, 60 days, etc.?
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Special Valuation of a Pooled Profit Sharing Account I have a $900,000 plan with 30 lives. One deceased participant has an account of $300,000 in this pooled account. We run quarterly valuations. The trust value has dropped 7% since the end of the last quarter. Are we permitted to run a special valuation to pay him and two others out? The other two distribution elections just happened to come in at the same time. I would hate for all of the other smaller accounts to absorb the loss.
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Most Popular Items in the Previous Issue |
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Taxpayers Generally Comply with Annual Contribution Limits for 401(k) Plans; However, Additional Efforts Could Further Improve Compliance (PDF)
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Connect
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Holly Horton, Business Manager
BenefitsLink Retirement Plans Newsletter, ISSN no. 1536-9587. Copyright 2018 BenefitsLink.com, Inc. All materials contained in this newsletter are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of BenefitsLink.com, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.
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