[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
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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
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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
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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
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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."
Morningstar
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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
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Selected Discussions on the BenefitsLink Message Boards
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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
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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
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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
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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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