Retirement Plans Newsletter

January 6, 2020

BenefitsLink.com logo
EmployeeBenefitsJobs.com logo
Search   ·   Past Issues   ·   Get Message Boards Digest   ·   Get Health & Welfare News

Job Openings

View job as DC Plan Administrator DC Plan Administrator  View details

Northeast Professional Planning Group, Inc.
Red Bank NJ / NY

View job as Benefits & Compensation Associate Benefits & Compensation Associate  View details

Dorsey and Whitney LLP
Minneapolis MN / WA

View job as Benefits & Compensation Senior Attorney or Of Counsel Benefits & Compensation Senior Attorney or Of Counsel  View details

Dorsey and Whitney LLP
Minneapolis MN / WA

View job as Retirement Plan Services, Financial Consultant Retirement Plan Services, Financial Consultant  View details

Rockland Trust
Somerset MA

View job as Employee Benefits Investigator Employee Benefits Investigator  View details

Employee Benefits Security Administration [EBSA]
Pasadena CA / Telecommute

View job as Retirement Plan Consultant Retirement Plan Consultant  View details

Edberg Perry, LLC
Phoenix AZ / Telecommute

View job as MEP Assistant Team Leader MEP Assistant Team Leader  View details

Nova 401(k) Associates
Houston TX / AZ / Telecommute

View job as DB / DC Consultant DB / DC Consultant  View details

Nova 401(k) Associates
Houston TX / AZ / Telecommute

►View More Jobs

►Post a Job

►Get Instant Job Alerts


Webcasts, Conferences


Discussions

New Topics on the BenefitsLink Message Boards

New Comments and Topics

All Topics, Grouped by Forum


This Newsletter:
Subscribe Now

BenefitsLink Health & Welfare Plans Newsletter:
Subscribe Now

Message Boards Digest:
Subscribe Now


[Official Guidance]

Text of IRS Rev. Proc. 2020-04: Procedures for Determination Letter Requests (PDF)

Begins at page 148 of the linked 290-page Internal Revenue Bulletin. "This revenue procedure is a general update of Rev. Proc. 2019-4, 2019-1 I.R.B. 146, which sets forth general information about the types of advice provided by Employee Plans Rulings and Agreements; general procedures for letter ruling and determination letter requests; specific procedures for determination letter requests; and the user fees associated with advice requested from Employee Plans Rulings and Agreements."

Internal Revenue Service [IRS]

[Sponsored]

Webcast Series: Basics of Qualified Retirement Plans for 2020

Sponsored by ASC

New to the retirement plan industry? Or looking for a review? Don't miss ASC's Fundamentals of Qualified Retirement Plan webcasts! Part 1 includes Participation, Coverage, Vesting & much more. Attend 1, some or all sessions. Register Now! Learn more


[Guidance Overview]

Editor's Pick IRS Rev. Proc. 2020-4 Updates the Determination Letter Program

"[Changes include:] [1] Section 6.02 has been modified to provide a list of applicable documents that should be submitted with determination letter request applications to enable the IRS to more efficiently process them.... [2] Section 8.02 has been modified to add a category of determination letter requests submitted by an adopting employer (or a controlling member of a multiple employer plan, if applicable) of a pre-approved plan with respect to the third (and subsequent) six-year remedial amendment cycles, under Rev. Proc. 2017-41 ... [3] Section 9.07 has been revised to delete a sentence that provided that a favorable determination letter does not constitute a determination with respect to the federal tax consequences of a lump sum risk transferring program."

Thomson Reuters Practical Law

[Guidance Overview]

Editor's Pick A Basic 'Comparison Glossary' for MEPs and MEP Types After the SECURE Act

" 'Aggregating' plans has now taken center stage with the passage of the SECURE Act. We now often find ourselves a bit muddled by the new array of terms with which we now need to deal. Keep this as a (hopefully) handy glossary to guide when you find yourself caught in the middle of a conversation about 'Multiple Employer Plans' and need to quickly summarize the different MEP types[.]"

Business of Benefits

[Guidance Overview]

President Trump Signs SECURE Act Into Law

"Although actual plan amendments will not be required for some time, modifications will need to be made to administrative systems starting in 2020, and any SECURE Act changes adopted will need to be communicated to plan participants, either by distributing a summary of material modifications or preparing a new summary plan description."

Seyfarth Shaw LLP

The Effect of Employer Matching and Defaults on Federal Workers' TSP Savings Behavior

"This presentation provides information about how CBO estimates the effects of employer matching and default deferral rates on federal employees' contribution rates to the Thrift Savings Plan and on employers' costs.... [M]ost of the previous literature has examined such changes in the defined contribution (DC) plans in the private sector -- an approach that makes extrapolating finds to public-sector workers difficult."

Congressional Budget Office [CBO]

[Opinion]

Scoring the SECURE Act: You Will Be Surprised at the Results

"Many parties will be affected by the SECURE Act, and many entities will profit. However, ... the average American's ability to retire sooner, with more security or even at all, is not materially improved by the Act.... [The author has] scored the major provisions of the SECURE Act ... based upon how they help the average American worker prepare for retirement.... [and shares] some thoughts on what Congress should have done to improve the odds that more American workers can achieve a secure retirement."

Lawton Retirement Plan Consultants

[Opinion]

Your IRA Was Never Intended to Be a Vehicle to Pass Along Your Wealth

"IRAs and 401(k)s weren't meant to be used as a way to transfer wealth. They were designed to encourage people to save by giving plan participants and/or account holders -- not their children or children's children -- a tax break. The loophole created by the law that has allowed beneficiaries to stretch out their tax burden was a bonus, not an entitlement that should never be touched. The provision affecting stretch IRAs would generate $15.7 billion of revenue[.]"

The Washington Post; subscription may be required

[Opinion]

The Public Pension Funding Crisis: Why Should Today's Workers and Retirees Pay the Price?

"[P]ublic pensions have been underfunded by modern metrics for generations, essentially since the inception of those pensions.... Why should this generation be the one to suffer from the obligation to bring the plans up to funded status -- either as pensioners or participants with benefit cuts, or as taxpayers?"

Elizabeth Bauer via Forbes

Benefits in General

[Guidance Overview]

Year-End Tax Act Ushers in Plan Changes

"Many of these changes become effective currently or in the next year, and some even have a retroactive effect that would require retirement plan sponsors' immediate attention.... Although we are yet to hear from the IRS on the timing of amendments to retirement plans that must reflect the SECURE Act changes, employers should start reviewing their plans now to determine what action is immediately required under the new legislation, and what steps must be taken to ensure plan compliance in 2020 and beyond."

Nixon Peabody LLP

Selected Discussions
on the BenefitsLink Message Boards

Applying the Tax Credit Provided Under the SECURE Act

"If a small business has an existing 401(k) but then sets up a cash balance plan, could they use the tax credit for the cash balance plan? Is the tax credit per employer or per plan?"

BenefitsLink Message Boards

One Contingent Beneficiary Is Deceased -- Is Other Now 100%?

"A participant and his primary beneficiary are deceased. There are two contingent beneficiaries with 50% allocations. If one of the contingent beneficiaries passes away, would the surviving benefit become the 100% beneficiary?"

BenefitsLink Message Boards

Effect of SECURE Act on Participant Who Has Already Taken Their First RMD

"A person who took their first RMD in 2019 (when they turned 70-1/2). Per the SECURE Act, are they required to take their RMD in 2020 or can they skip and take this RMD when they turn 72 (in 2021)?"

BenefitsLink Message Boards

► Subscribe to the BenefitsLink Message Boards Digest -- a free daily email of all new discussions (not just the selected few shown above). View a sample issue.

Press Releases

Most Popular Items in the Previous Issue

BenefitsLink.com, Inc.
1298 Minnesota Avenue, Suite H
Winter Park, Florida 32789
(407) 644-4146

Lois Baker, J.D., President  loisbaker@benefitslink.com
David Rhett Baker, J.D., Editor and Publisher  davebaker@benefitslink.com
Holly Horton, Business Manager  hollyhorton@benefitslink.com

Article submission: Online form, or email to news.editor@benefitslink.com

BenefitsLink Retirement Plans Newsletter, ISSN no. 1536-9587. Copyright 2020 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.

Links to web sites other than BenefitsLink.com and EmployeeBenefitsJobs.com are offered as a service to our readers; we were not involved in their production and are not responsible for their content.

Unsubscribe  |   Change Email Address  |   Privacy Policy