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Retirement Plans Newsletter

June 15, 2021

6 New Job Opportunities


[Guidance Overview]

Correcting Retirement Plan Coverage Failures

"Failure to satisfy coverage testing is a disqualifying event. It is considered to be a 'demographic' failure because the Plan has operated according to its terms, and the Plan's document is fine.... The Plan document may provide a 'failsafe' provision that dictates how the employer should resolve certain types of demographic failures.... If there is no failsafe provision, however, the plan must be amended to fix the failure through use of an 11(g) amendment."  MORE >>

Ferenczy Benefits Law Center


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[Guidance Overview]

Best Interest Standard of Care for Advisors, Part 54

"This article is an overview of the requirements of PTE 2020-02. It discusses the expanded fiduciary definition, the conditions in the PTE, and the DOL's non-enforcement policy in effect until December 20, 2021."  MORE >>

Top Reasons Why Service Provides Need Clean Retirement Plan Data

"[1] It's critical for benchmarking ... [2] It provides a foundation for sound plan recommendations ... [3] It improves data quality and enhances efficiencies ... [4] It saves money ... [5] It helps reduce risk ... [6] It facilitates better business decisions ... [7] It delivers opportunities to grow your business ... [8] It helps improve client retention and enhance profits ... [9] It justifies the fees being paid for the value provided ... [10] It instills confidence."  MORE >>

Fiduciary Benchmarks

What to Know Before You Leave Your IRA or 401(k) to the Kids

"[One] consequence of compressing the withdrawal into a 10-year window is that grown kids may need to take big distributions right around the time their kids are applying to college. Money inside a retirement account doesn't get factored into financial aid formulas. But distributions from retirement accounts do.... [A] distribution from an inherited retirement account could impact the taxation of Social Security benefits."  MORE >>

What Advisers Would Like Plan Sponsors to Better Understand

"Advisers wish fiduciary responsibilities were more top-of-mind for committees and that sponsors would better define what success means for their plans."  MORE >>

PLANSPONSOR; free registration may be required

Benefits in General

[Official Guidance]

Alert (High Risk Issue) icon Text of EBSA Information Letter 06-14-2021: Upon Claimant's Request, Plan Fiduciary Must Provide Copy of Audio Recording and Transcript of a Telephone Conversation

"[A] recording or transcript of a conversation with a claimant would not be excluded from the requirements under 29 CFR 2560.503-1 to disclose relevant 'documents, records, and other information' merely because the plan or claims administrator does not include the recording or transcript in its administrative record; does not treat the recording or transcript as part of the claim activity history through which the insurer develops, tracks and administers the claim; or because the recording or transcript was generated for quality assurance purposes."  MORE >>

Employee Benefits Security Administration [EBSA], U.S. Department of Labor [DOL]

Employee Benefits Jobs

View job as Senior 401(k) Administrator
for Actuaries and Associates Senior 401(k) Administrator

Actuaries and Associates

Fort Worth TX / El Paso TX / Houston TX

View job as Enrolled Actuary
for Charles Schwab Enrolled Actuary

Charles Schwab

Richfield OH / TX

View job as General Attorney
for Pension Benefit Guaranty Corporation [PBGC] General Attorney

Pension Benefit Guaranty Corporation [PBGC]

Telecommute / Washington DC

View job as Compliance (Retirement) Lawyer
for Segal Compliance (Retirement) Lawyer


New York NY / DC

View job as Retirement Plan Administrator
for Nicholas Pension Consultants Retirement Plan Administrator

Nicholas Pension Consultants

Telecommute / Rancho Cordova CA / Corona CA

View job as Training Specialist
for Compass Retirement Consulting Group/Compass 360, LLC Training Specialist

Compass Retirement Consulting Group/Compass 360, LLC

Telecommute / Stratham NH

Selected New Discussions

Dual Eligibility in Safe Harbor Plans?

"A colleague has clients whose safe harbor plans allow immediate entry for deferrals but have a 3 month wait for the safe harbor match. Has anyone had any experience with that type of design? I had always thought that once you were eligible for deferrals you were eligible for safe harbor (at least the NHCEs), notwithstanding the disaggregation option."

BenefitsLink Message Boards

ERISA Sec. 4204 Guidance for Asset Sales Avoiding Withdrawal Liability

"I'm looking for helpful secondary analysis/discussion of the usual 4204 exceptions for asset sales and how to think about various possibilities in a deal setting but not finding much. Anybody have recommendations?"

BenefitsLink Message Boards

Deduction on 1040 for a Partner in a 401(k) Plan

"I know the deduction limit for the employer part of a 401k plan is limited to 25% but does that 25% limit flow to the partner's 1040? I have a partner that maxed out at $57,000 plan does not go over the deductibility limit. However, his accountant is doing his 1040 and he says he is limited to 20% of his SE income."

BenefitsLink Message Boards

Financial Institution Insists on Determination Letter Before Accepting Rollover to IRA from 401(k) Plan

"Large financial institution demands that I send them the Determination Letter for a plan that has less than 10 participants in order to roll over money to an IRA on behalf of a former employee. These plans are small and do not have their own Determination Letters with their name on it. The financial institution says that's not good enough. Solutions?"

BenefitsLink Message Boards

Qualified Birth and Adoption Expenses -- Trust the Participant's Self-Certification?

"Plan includes the QBAD provisions. Apparently these distributions are subject to self-certification. Is there a provision that says something like 'unless the plan administrator has actual knowledge to the contrary'? Just curious what the standard for verification is on these QBADs."

BenefitsLink Message Boards

Press Releases Releases Major Update to the Qualified Plan eSource

OneAmerica® Emerges from 'Pandemic Year' with Strong Capital Position and Profitable Growth


Webcasts and Conferences
(Retirement Plans or Exec Comp)

401(K) Loan and Distribution Basics

August 19, 2021 WEBCAST

Nova 401(k) Associates

EPCRS Overview and Case Studies

August 25, 2021 WEBCAST

ASPPA [American Society of Pension Professionals & Actuaries]

Last Issue's Most Popular Items

Pandemic Causes One-Third of Americans to Rethink Retirement Date


Text of Enrolled Actuaries Pension Examination EA-1, Spring 2021 (PDF)

American Society of Pension Professionals & Actuaries [ASPPA]; Joint Board for the Enrollment of Actuaries [JBEA]; Society of Actuaries

Cybersecurity and Related Legal Risks Come Home to ERISA Plans

Stradley Ronon

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

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