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February 20, 2020 logo logo
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Washington DC / Telecommute

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Internal Revenue Service [IRS]
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San Ramon CA / Houston TX

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Wakefield MA / Melville NY / MI

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Third Party Administrators
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Webcasts, Conferences

Navigating Change in an Evolving Government Retirement Industry
March 3, 2020 WEBCAST
CBIZ, Inc.

Plan Mergers & Terminations: When We Need to Say Goodbye to a Plan
April 1, 2020 WEBCAST
ASPPA [American Society of Pension Professionals & Actuaries]

NAPA 401(k) Summit
April 26, 2020 in FL
National Association of Plan Advisors [NAPA]

Annual Conference & Exhibition
May 10, 2020 WEBCAST
National Conference on Public Employee Retirement Systems [NCPERS]

►See 120 Upcoming Webcasts and Conferences

►See 1477 Recorded Webcasts


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[Official Guidance]

Text of Instructions for 2020 IRS Forms 1099-R and 5498: Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. (PDF)

26 pages, Feb. 14, 2020. "What's New: [1] Form 1099-R ... Section 113 of the [SECURE Act] ... added section 72(t)(2)(H) ... [which] provides for a distribution of up to $5,000 for a qualified birth or adoption that is exempt from the 10% early distribution tax and that can be repaid.... [2] Form 5498 ... We have added code 'BA' for reporting a repayment of a qualified birth or adoption distribution.... The SECURE Act ... has increased the RMD age from 70-1/2 to 72 for taxpayers turning 70-1/2 after December 31, 2019."

[Editor's note: published by IRS on Feb. 20 in final form; probably unchanged from a previous draft dated Feb. 14, 2020]

Internal Revenue Service [IRS]

[Guidance Overview]

401(k) Plan Changes in SECURE Act May Necessitate System Changes (PDF)

Topics: [1] Required minimum distributions; [2] Plan establishment; [3] Expansion of 401(k) plan deferral opportunities to long service part-time employees; [4] New safe harbor 401(k) plan requirements; [5] Increasing automatic contribution maximum for QACAs; [6] Change in calculation of annual addition limit for defined contribution plans; [7] Pension plan changes on phased retirement distribution commencement; [8] Frozen pension plan nondiscrimination relief; [9] Deadline for required plan amendments; [10] Participant loan changes; [11] Distribution for birth or adoption of a child; [12] Qualified disaster distribution; [13] Automatic extensions for taxpayers in federally declared disaster areas; and [14] Increase in penalty for failure to file Form 5500.

Jackson Walker, via Bloomberg Tax Management Memorandum

Eighth Circuit: 401(k) Plan Service Provider Is a Fiduciary When Setting Guaranteed Rate of Return

"The outcome in this case is distinguishable from the Tenth Circuit's decision -- which held that the service provider in question was not a fiduciary -- because the participants in that case failed to offer evidence showing that the provider's restrictions were enforced, or were an unenforced (but actual) deterrent. This case identifies one set of actual, enforced restrictions that has triggered fiduciary status." [Rozo v. Principal Life Ins. Co., No. 18-3310 (8th Cir. Feb. 3, 2020); Teets v. Great-West Life & Annuity Ins. Co., No. 18-1019 (10th Cir. Mar. 27, 2019; cert. denied Nov. 25, 2019)]

Thomson Reuters / EBIA

Managing Retirement Plan Risk: What Executives, Directors and Business Owners Should Know

"Officers, directors, and business owners can have personal liability.... [S]elect the plan fiduciaries deliberately [and] delegate fiduciary and decision-making authority with thoughtful deliberation. Don't become a fiduciary by accident. The board, partners, or other owners may retain some oversight responsibility, but fiduciary decision-making for retirement plans should be delegated to those with appropriate knowledge and experience who will focus on these issues."

Employee Benefits Law Group

Tax Rules for Different Types of Retirement Plan Deferrals

"[1] While 401(k) and 403(b) plans can offer after-tax contributions, 457(b) plans cannot. [2] In determining RMDs, 403(b) plans can be aggregated, but 401(k) and 457(b) cannot be.... [3] A 10% early distribution penalty applies to certain 401(k) or 403(b) distributions made before age 59-1/2... [but not] to 457(b) distributions -- except for certain distributions of non-457(b) plan rollovers. [4] Only 403(b) plans allow for a special catch-up contribution for employees with 15 or more years of service. Only 457(b) plans allow a special catch-up for the last three years before an employee's normal retirement age."

Slott Report

Feeding the Piggybank: What's the Maximum I Can Defer?

"[Here's] a look into the absolute maximum that an individual could voluntarily defer into any combination of qualified retirement plans (403(b)/401(k)/457(b)) in 2020. The result was surprising[.]"

Cammack Retirement Group

Editor's Pick How Does Investing in ESG Companies Affect Returns?

"[I]nvestors can build global portfolios tilted toward high-scoring ESG companies without compromising return. However, investors building portfolios in the U.S. and Canada face a small return discount for investing in these ESG companies. In either case, the risk associated with tilting toward a better ESG portfolio is largely comparable to that of portfolios with poor ESG ratings.... [T]he ESG factor is distinct from other well-known style factors, like the investment factor. Therefore, it deserves consideration in portfolio construction and risk management."


New Multiple Employer Plan Will Cover 12 Indiana Private Colleges and Universities

"Independent Colleges of Indiana (ICI), the state's member association of 30 private non-profit colleges and universities, is launching one of the largest 403(b) Multiple Employer Plans (MEP) among private colleges in the United States. The ICI MEP will include 12 institutions and cover more than 4,048 employees with $600 million in assets. The projected savings are estimated to reach nearly $500,000 each year."

Building Indiana

Selected Discussions
on the BenefitsLink Message Boards

Multiple 401(k) Plans Covering the Same Employee

"An employer can have a 401a, 403b and 457b plan, a DB plan and a 401k plan or separate 401k plans for employees covered under a collective bargaining agreement and all other employees, but I have had the understanding that there cannot be more that one 401k plan covering the same employees. This was based on the premise that it is impossible for an administrator to serve two masters -- i.e., which plan's participation requirements, plan features, etc. would apply. Correct? Is there any guidance confirming this either way?"

BenefitsLink Message Boards

Age 70-1/2 Now Age 72 Under SECURE Act -- What Effect on Required Actuarial Increases in DB Plans?

"Code Section 401(a)(9)(C)(iii) provides that if a participant who is not a 5% owner has his or her required beginning date be the April 1st of the calendar year following the calendar year in which s/he retires, the plan is required to actuarially increase benefits after the employee attained age 70-1/2. When the SECURE Act increased the age for the required beginning date from 70-1/2 to 72, it did not increase the age at which actuarial increases are required to begin to be made. Is this merely an oversight or intentional? Any thoughts about what the IRS or Treasury intended to do in this provision?"

BenefitsLink Message Boards

Effect of SECURE Act on a QDRO

"I have been searching in vain for discussions concerning the impact of the SECURE Act on the allocation of pension and/or retirement benefits. May a Participant in a 401(k) Plan elect an annuitized payout of his 401(k) Plan account prior to the divorce and thereby deprive the Alternate Payee of the ability to elect an immediate lump sum tax-free rollover or a taxable distribution?"

BenefitsLink Message Boards

457 Plan Document Compliance -- Restatement

"We do not work with 457 plans but a financial advisor who refers to us asked me about a 457 plan that they took over management of -- specifically what is the plan document restatement cycle like for these plans? Was there an April 2016 PPA deadline like 401(k) plans? Or something else? When was the last required restatement deadline?"

BenefitsLink Message Boards

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Press Releases

Upcoming Events About Retirement Plans or Executive Compensation

Feb. 24
IRA Institute
Fee is required
Feb. 25
Accredited Investment Fiduciary Designation Training
Fee is required
Feb. 25
Accredited Investment Fiduciary Designation Training
Fee is required
Feb. 25
Accredited Investment Fiduciary Designation Training
Fee is required
Feb. 25
A Deep Dive on RMDs
Western Pension & Benefits Council
Fee is required
Feb. 26
Breaking Down the SECURE Act's Impact on DC Retirement Plans
Multnomah Group
Feb. 26
Avoiding Nonqualified Plan Traps: Key Considerations for ERISA Counsel and Employers
Fee is required
Feb. 27
IRA and 401(k) Retirement Changes: Understanding the SECURE Act and How It Will Affect Your Business
Feb. 27
The Dirty Dozen: The Most Common Plan Mistakes and How to Fix Them
Feb. 27
Regional Benefits Forum
Southeast Benefits Education Network [SBEN]
Fee is required
Feb. 27
Retirement Plans Legislative and Regulatory Update
Feb. 27
Multiple Employer Plans Under the SECURE Act
Wagner Law Group P.C.

Most Popular Items in the Previous Issue, Inc.
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Winter Park, Florida 32789
(407) 644-4146

Lois Baker, J.D., President
David Rhett Baker, J.D., Editor and Publisher
Holly Horton, Business Manager

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