[Official Guidance]
"The Board of Trustees of the Roofers Local No. 88 Pension Fund ... has submitted an application to reduce benefits under the plan in accordance with [MPRA].... [T]he application ... has been published on the website of the Department of the Treasury ... Comments must be received by February 26, 2021."
U.S. Department of the Treasury
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[Guidance Overview]
"To understand the impact of these changes, the starting point is in the prohibited transaction restrictions in ERISA and the Internal Revenue Code. Without getting into the weeds, those rules prohibit fiduciary recommendations to plans, participants or IRA owners that result in increased compensation for the 'fiduciary advisor.' That raises two issues. The first is the meaning of increased compensation and the second is what constitutes a fiduciary recommendation? [The authors] discuss both questions, and the answers, in the context of rollover recommendations."
Faegre Drinker
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"The new relief gives sponsors a temporary opportunity to put an early end to existing qualified future transfers and take all the unused money back. The minimum employer-cost requirements will still apply throughout the rest of the transfer period. Sponsors making the election still must meet certain reduced funding-level requirements for the DB plan during the original transfer period and the next five years."
Mercer
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"Decision paralysis ... Clunky participant experience ... Lack of liquidity ... Portability ... Growth limitations ... Relative value."
401(k) Specialist
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"Employee engagement is essential in determining the value of any Financial Wellness program. The purpose of this Research Report is to help retirement plan sponsors design a Financial Wellness Program Management Dashboard based on the practices of leading retirement plan advisors. The report provides a framework for monitoring progress and gives guidance to plan sponsors on the key indicators to monitor."
Retirement Advisor Council
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[Opinion]
10 pages. "For Treasury/IRS to align its standards to [the notice-and-access safe harbor (NA)] and/or deem compliance with NA as compliance with its own standards as SPARK requests would hasten what has become a race to the bottom in consumer protections for retirement plan participants and beneficiaries. If anything, Treasury/IRS should strengthen the requirements in 2006 regulations to better protect participants and beneficiaries in this era of data overload and digital inequality to counterbalance the dramatic weakening of protections represented by DOL's new regime."
Pension Rights Center
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Benefits in General
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[Guidance Overview]
"In addition to extending certain tax filing and tax payment deadlines, the postponements addressed in this guidance include completion of the many time-sensitive, tax-related acts described in IRS Revenue Procedure 2018-58 and Treasury Regulation 301.7508A-1(c)(1), which include filing Form 5500 for retirement plans, completing rollovers, making retirement plan loan payments, etc."
Ascensus
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Executive Compensation and Nonqualified Plans
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"The deadline for furnishing Copy B of Forms 3921 and 3922 to the employee or former employee for ISO exercises or ESPP shares purchased during 2020 is January 31, 2021. The deadline for filing Copy A of Forms 3921 and 3922 with the IRS depends on whether the returns are required to be filed electronically or manually. Corporations that are filing 250 or more copies of Form 3921 or 3922 ... must file Copy
A of the forms electronically through the IRS FIRE system. The deadline for electronic filings is March 31, 2021. Corporations filing fewer forms can elect to file either manually or electronically, but manual filings must be made by February 28, 2021."
Latham & Watkins
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Selected Discussions on the BenefitsLink Message Boards
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► It's easy to sign up and participate in discussions! Post answers, ask questions, create custom feeds and views. Join your peers (and potential referral sources or customers)—there is no charge.
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"ABC LLC is a multi-member LLC taxed as a partnership. One member, John, was incorrectly classified as a W-2 employee for many years, and is a participant in the company's 401(k) plan. Beginning 1/1/2021, John is receiving guaranteed payments on K-1 instead of W-2. Is John able to continue to participate in ABC's 401(k)?"
BenefitsLink Message Boards
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"A plan was established 1/1/2020. It allows prevailing wage and profit sharing contributions as of 1/1 but the effective date of the deferral provision is 4/1/2020. Should the compensation used for the ADP test be for the time period the deferral was effective, so 4/1 through 12/31/2020?"
BenefitsLink Message Boards
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"We prepared a loan document for a client in December 2019, with an interest rate of the then-prime rate plus 2% (loan issued at 5.75%). With the COVID suspension and re-amortization, would the interest rate need to be the same?"
BenefitsLink Message Boards
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"Husband and wife own 100% of business that sponsors a DB plan. They are the only employees, the only participants, and the plan's trustees. Husband wants to buy an investment property (a building housing a fast food restaurant, but I don't think that's relevant) 50/50 with the plan as tenants in common. I believe this is a PT. Does anyone disagree?"
BenefitsLink Message Boards
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