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[Guidance Overview]

The DOL's Proposed PTE: A New Interpretation of Fiduciary Conduct

Podcast. "While the new proposed rule is primarily a class exemption that harmonizes ERISA conditions for receiving commissions and other variable compensation with existing securities law standards, it also does a lot more.... [This podcast focuses] on the proposed rule's lengthy -- and unusual -- preamble, which articulates a whole new interpretation of fiduciary conduct, including defining rollover recommendations as fiduciary advice."

Faegre Drinker

[Guidance Overview]

Upcoming Deadline iconIRS Liberalizes Rules for 2020 Mid-Year Reductions in Safe Harbor Contributions

"This temporary relief is conditioned upon the plan sponsor's adoption of an appropriate plan amendment between March 13, 2020 and August 31, 2020. Further, with respect to nonelective safe harbor contributions, the amendment must be adopted on or before the date the reduction or suspension will be effective and notice of the reduction or suspension must be provided to eligible employees no later than August 31, 2020."

Bond, Schoeneck & King

[Guidance Overview]

Upcoming Deadline iconSummer To-Do List: Determination Letter Filing for Cash Balance Plans and Pension Equity Plans

"The IRS deadline to file for a determination letter for an individually designed statutory hybrid plan is August 31, 2020. Statutory hybrid plans include cash balance plans, pension equity plans and certain other variable annuity plans. This deadline has not been extended under any recent IRS pandemic-related guidance."

Faegre Drinker

[Guidance Overview]

COVID-19: IRS Details CARES Act Relief for IRA Owners and Providers

"The [IRS] recently released new guidance in IRS Notice 2020-50 and Notice 2020-51 ... 60-day rollover deadline extended until August 31, 2020 to roll over 2020 'would-be' RMDs.... Restriction on number of IRA rollovers in 12-month period lifted until August 31, 2020 for 2020 'would-be' RMDs.... 2020 inherited IRA 'would-be' RMDs may be rolled over by August 31, 2020... IRA providers required to notify IRA owners.... Expanded eligibility for Coronavirus-Related Distributions.... Form 1099-R required even if repayment in same year."

Morgan Lewis

[Guidance Overview]

DOL Modernizes Rules for Electronic Distribution of Retirement Plan Communications (PDF)

"The DOL has permitted electronic distribution of participant communications to plan participants since 2002, but only to [certain] individuals ... The new DOL final regulations provide administrators two ways to use electronic delivery as the default method for distributing required communications to participants: [1] the administrator may post the document or notice on a website, or [2] the administrator may email or text the document or notice to the participant's email address or smartphone."

Roberts & Holland LLP


Plan Advisor Checklist: Identifying the Best Retirement Plan Prospects

Retirement plan prospecting can be difficult. Successful advisors are targeted and focused on bringing new ideas to clients and prospects. Use this checklist to define your target audience, identify meaningful opportunities and communicate your value. Learn more

Sponsored by October Three

Editor's PickCurrent Summary of States Permitting Remote Notarization

Updated Jul. 23, 2020. "States are rapidly adapting to social distancing in their approaches to remote notarization. The [chart in this article] tracks the steps, special conditions, and considerations on a state-by-state basis. The chart lists states with temporary remote notarization procedures. It does not list states with pre-existing remote notary statutes and states requiring use of a third-party remote online notarization service."


Retirement Plan Fiduciary Considerations in Context of COVID-19

"[1] Assess preparedness of investment managers/consultants.... [2] Identify potential litigation risks.... [3] Evaluate options for capital preservation.... [4] Engage and educate plan participants.... [5] Adhere to the plan's investment policy statement."

Hall Benefits Law

PBGC Issues FAQs Related to COVID-19 and Single-Employer Defined Benefit Plans

"The FAQs address how the deadline delay under the CARES Act impacts reporting missed contributions to the PBGC ... The reportable event is not triggered until January 1, 2021. For contributions that were due in 2020, but were not paid by January 1, 2021: Form 200 must be filed by January 11, 2021, if the value of the missed contributions exceeds $1 million; or Form 10 must be filed by February 1, 2021[.]"

Thomson Reuters Practical Law

Building an Effective Succession Plan and Exit Strategy for Construction Industry Owners and Executives (PDF)

"An ESOP can [1] Be an excellent financial alternative for business owners rather than selling their business to a third-party ... [2] Offer certain tax benefits while providing business owners liquidity, diversification and enhanced retirement benefits; [3] Facilitate the financing of corporate transactions and provide employees with an ownership interest in their employer and a valuable retirement benefit, [4] Minimize the impact and risk of multiemployer union pension plans, and [5] Maximize economic and estate planning benefits compared to alternative options."

Francisco Pineda, Columbia University; John N. Vitucci, PKF O'Connor Davies LLP; Michael J. Andriola, PKF O'Connor Davies, LLP; Ashley K. Sarokhan, Capital One Bank, N.A.; Noor Rajah, Optimizing Foundations, LLC

Auto-Enrollment Retirement Plans for the People: Choices and Outcomes

"OregonSaves is serving firms across many industries ... In June 2019, approximately 24,000 contributing participants deposited an average of $110 per month, or about 5% of their pay, which is the default savings rate. To date, over 40,000 individuals have accumulated combined assets over $22.7 million.... OregonSaves has provided access to workplace retirement accounts for employees of small to mid-sized firms (average firm size 36 employees), with participating employees' earning an average of $2,182 per month."

Pension Research Council, The Wharton School of The University of Pennsylvania

Executive Compensation
and Nonqualified Plans

Differences Between Incentive Stock Options and Nonqualified Stock Options

"[T]here are some significant potential tax benefits that ISOs have over NSOs, but ... many recipients of ISOs never see those benefits. Primary differences between ISOs and NSOs [are shown in a side-by-side comparison chart] ... [T]the full tax benefits of ISOs are only realized if an employee exercises the ISO and holds the stock for more than a year prior to a company sale or other liquidity event."

Davis Wright Tremaine LLP

Second Circuit: Bankruptcy Code Caps Terminated Executive's Claims for Deferred Incentive Bonus Payments

"Woods argued that Section 502(b)(7) does not apply to the deferred incentive bonuses because: His right to full payment of the bonuses did not result from termination of his employment contract. Rather, he earned the right to payment at the time the government reforms discussed in his employment contract were made.... While acknowledging the intuitive appeal of Woods' arguments, the Second Circuit found them incompatible with the plain language of the statute. ... Therefore, they were properly subject to the Section 502(b)(7) cap."  [In re 21st Century Oncology Holdings, Inc.,  No. 19-1725 (2d Cir. Jul. 20, 2020)]

Thomson Reuters Practical Law

Selected Discussions
on the BenefitsLink Message Boards

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Mid-Year Plan Termination -- How Do I Determine Sole Proprietor's 'Compensation'?

"Sole prop plan. Plan terminated 6/30/20. Profit Sharing only. Owner wants to make a contribution for the year. How do I determine the owner's comp? Sched C won't be ready until next year. What if it's not PS only, but a 3% SH, or a plan with a fixed match? Do I have to wait until late-winter or spring?"

BenefitsLink Message Boards

Mid-Year Safe Harbor Plan Termination Due to Business Closing

"Owner is thinking about retiring and shutting down his business, not selling it. Because business would be terminating, would the plan still be considered safe harbor even if terminated mid-year? It's not a sale or merger so I'm having doubts."

BenefitsLink Message Boards

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Press Releases

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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