[Guidance Overview]
"The IRS issued guidance on Dec. 9 that addresses certain provisions of the SECURE Act that increase the automatic enrollment cap percentage and affect safe harbor plans, including safe harbor 401(k) plans and certain 403(b) plans. The guidance is contained in Notice 2020-86."
American Retirement Association [ARA]
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153 pages. "The Single-Employer Insurance Program's positive net position of $15.5 billion reflects an improvement of $6.8 billion compared to FY 2019. While currently financially healthy, the Single-Employer Insurance Program remains exposed to more than $176 billion in underfunding in pension plans sponsored by financially weak companies that could potentially become claims to PBGC. The Multiemployer Insurance Program continues to face a crisis ... and is highly likely to become insolvent in 2026. The Multiemployer Insurance Program remains severely underfunded with a negative net position of $63.7 billion, compared to $65.2 billion a year earlier. It remains clear that legislative reform is necessary to avert insolvency[.]"
Pension Benefit Guaranty Corporation [PBGC]
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"[Notice 2020-86] says that in order to maintain its status as a qualified automatic contribution arrangement (QACA) safe harbor 401(k) plan, the plan is not required to increase the maximum qualified percentage of compensation used to determine automatic elective contributions. The qualified percentage under a QACA safe harbor 401(k) plan may be any percentage of compensation determined under the plan, as long as the percentage is applied uniformly and does not exceed 15%, or 10% during the initial period of automatic elective contributions."
planadviser
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"The Senate Finance Committee's subcommittee on Social Security, pensions, and family policy held a hearing [December 9] on the challenges facing Americans' retirement security. While talk mostly focused on legislation aimed at improving defined contribution plans, there were hopeful signs of a potential compromise to deal with the multiemployer pension crisis."
Pensions & Investments
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"For many retirees, retirement may last 30 years or more. How you manage the money you will need today may be quite different from how you treat the money you'll need in 20 or 30 years.... [O]ne tactic ... to consider is dividing your assets into three buckets, each representing about 10 years of your potential 30-year retirement."
MassMutual
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Benefits in General
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"When an employee dies -- regardless of the cause -- employers often want to immediately help the employee's family financially in their time of grief, but a number of administrative, legal, and tax-related issues must be considered before an employer pays final compensation and benefits to the beneficiaries or estate of the deceased employee."
Pillsbury Winthrop Shaw Pittman LLP
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"I work within a payroll company where the main objective is sell as many plans as possible to meet sales goals. Right now we have over 300 plans and more coming in every day. Including myself there is only 1 other person that knows how to administer the plans. How big is a typical caseload for 1 administrator? I'm tired of working many long hours and cringe that our busiest season is right around the corner."
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"I have a 401K safe harbor with voluntary, after-tax contributions. One of the owners mistakenly over-contributed a portion of the voluntary such that he's over 415. Since voluntary is not deductible anyway, could the excess be transferred to a rollover account?"
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