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Retirement Plans Newsletter

November 5, 2021

6 New Job Opportunities 6 New Job Opportunities


[Official Guidance]

Draft of IRS Form W-4P: Withholding Certificate for Periodic Pension or Annuity Payments (PDF)

"This is a fourth early release draft of the 2022 IRS Form W-4P, Withholding Certificate for Periodic Pension or Annuity Payments, which the IRS is providing for your information, review, and feedback. The 2022 Form W-4P has been split into two forms, Form W-4P for periodic pensions and annuities, and new Form W-4R, Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions. This fourth early release of the 2022 draft Form W-4P is for the sole purpose of providing a revised worksheet for computing withholding and information regarding the implementation of the 2022 Forms W-4P and W-4R."  MORE >>

Internal Revenue Service [IRS]

[Guidance Overview]

Update on Pending Withholding Forms W-4P and W-4R

"The industry is eagerly awaiting the release of these final forms, which [may be coming in December]. But there is still a very strong push for a delay in mandating the use of these forms, out of concern with the time it takes to program, test, and implement a rollout of the changes to tens of millions of pensioners and IRA owners."  MORE >>

Groom Law Group

[Guidance Overview]

IRS Announces 2022 Cost of Living Adjustments for Retirement Plan Limits

"[W]ith the increase in inflation, the IRS bumped up a number of [plan] limits for 2022. The key limits that increased include the compensation that is taken into account for plan purposes, the total amount that can be contributed on behalf of any participant in a defined contribution (including 401(k)) plan, and the Social Security Taxable Wage Base." [A chart shows 2021 and 2022 limits.]  MORE >>

Ferenczy Benefits Law Center

[Guidance Overview]

ESOP Essentials: Can My Company Offer an ESOP?

"This alert describes how IRC requirements determine whether a business can offer an ESOP to its employees. It also identifies which corporate structure is associated with a potential business owner tax benefit."  MORE >>

Williams Mullen

District Court: Separation Agreement's Covenant Not to Sue Bars ERISA Breach of Fiduciary Duty Claim on Behalf of Plan

"[P]laintiff argued that the language of the agreement only precluded him from bringing ERISA claims in his individual capacity ... [T]he court found that even if the agreement had not waived plaintiff's ability to bring an action on behalf of the plan, he had executed a covenant not to sue Cumulus Media in any capacity, whether individual or derivative, and was thus precluded from bringing any legal action 'of or related to' claims he had released in the agreement, including ERISA claims." [Alfonso v. Cumulus Media, Inc., No. 20-847 (N.D. Ga. Oct. 15, 2021)]  MORE >>

Jackson Lewis P.C.

Sixth Circuit: 401(k) Contributions Prior to Bankruptcy Can't Be Excluded from Disposable Income

"This case ... boiled down to whether the post-petition amounts the Debtors intended to contribute to a 401(k) plan constitute 'projected disposable income.' The Sixth Circuit ruled that such amounts should be treated as projected disposable incomes that are available to pay creditors." [Penfound v. Ruskin, No. 19-2200 (6th Cir. Aug. 10, 2021)]  MORE >>

Foster Swift

Fiduciaries: Assuming Additional Responsibilities for Retirees Is Rife with Questions

"Deciding whether to encourage participants to leave account balances in the plan through retirement should not be based solely on considerations like accumulation of assets in the plan, the offsetting of administrative fees, and the ability to offer very low-cost funds.... [If] fiduciaries encourage participants to leave their account balances in the plan ... it would seem prudent to consider adding some type of retirement income solution to the plan.... Some factors to consider include: Determining the amount of responsibility retirees should have.... Deciding between advisory services or a guaranteed income product.... Evaluating guaranteed income products."  MORE >>

Keightley & Ashner LLP

New Consortium Will Promote Income Options in 401(k) Plans

"Broadridge Fi360 Solutions, data provider Cannex, and Fiduciary Insurance Services have teamed to initiate a Lifetime Income consortium to promote the need for guaranteed income options within retirement plans.... Asked about how it differs from the Alliance for Lifetime Income, Faustino said ... '[W]e're more plan-centric and focus on addressing roadblocks to adoption outside of just execution ... Our consortium will be ... focused on accelerating the adoption of retirement income through employer-based plans.' "  MORE >>

401K Specialist

Is SCOTUS Considering CalSavers Challenge?

"The nation's highest court appears to be considering a review of a challenge to the CalSavers program. At least that's implied by the request ... by the U.S. Supreme Court that the CalSavers program itself -- and California Treasurer Fiona Ma -- defendants in a suit brought by the Howard Jarvis Taxpayers Association last month--to respond to the latter's Oct. 12 petition for a writ of certiorari." [Howard Jarvis Taxpayers Association v. California Secure Choice Ret. Savings Program, No. 20-15591 (9th Cir. May 6, 2021; cert. pet. filed Oct. 12, 2021)]  MORE >>

National Tax-Deferred Savings Association [NTSA]

Pension Finance Update, October 2021

"Pension finances gained ground in October, as resilient stock markets more than offset the impact of declining interest rates. Both model plans ... improved last month: Plan A gained 2% in October and is now ahead more than 11% for the year, while the more conservative Plan B gained 1% last month and is now 3% up through the first ten months of 2021."  MORE >>

October Three Consulting


Nailing SFA Rate 'Blunder'

"In comparing how much bailout money insolvent multiemployer plans are asking from the government to what they reported as unfunded liabilities on their latest 5500 filings some substantial differences come to light. For example, one plan asked for $14 million when their unfunded liabilities are $6.5 million.... The Carpenters Industrial Council of Eastern PA calculates needing 217.2% of unfunded liabilities for one simple reason. When they get their $14 million they are expecting to make $0 in trust earnings on it for 30 years."  MORE >>


Benefits in General

[Guidance Overview]

Upcoming Deadline icon 2021 Year-End Preparation for Benefit Plans (PDF)

"[I]tems to be sure to check off your list before 2021 concludes. Retirement plans: [1] Hardship distribution amendments.... [2] Other amendments.... [3] Pension funding.... [4] Notarization.... [5] Part-time employees for 401(k) eligibility.... [6] Nonqualified plan compliance.... Health and welfare plans: [7] Cafeteria plans and FSAs.... [8] Health plan telehealth relief.... [9] Surprise billing.... [10] Mental health parity expansion.... ERISA plans generally (retirement and welfare plans): [11] COVID-19 extensions expiring."  MORE >>

Ivins, Phillips & Barker

Employee Benefits Jobs

View job as 401(k) Plan Administrator
for BSP Retirement Services 401(k) Plan Administrator

BSP Retirement Services

Remote / Oldsmar FL

View job as 401(k) Plan Administrator
for BSP Retirement Services

View job as TPA Department Manager
for Keating & Associates, Inc. TPA Department Manager

Keating & Associates, Inc.

Remote / Manhattan KS

View job as Statistician (Health)
for Centers for Medicare & Medicaid Services [CMS] Statistician (Health)

Centers for Medicare & Medicaid Services [CMS]

Remote / Woodlawn MD

View job as DB / DC Plan Consultant
for Small NY Actuarial TPA Firm DB / DC Plan Consultant

Small NY Actuarial TPA Firm

Remote / CT / NJ / NY

View job as Senior Pension Plan Administrator
for Schiller's Pension Consulting Senior Pension Plan Administrator

Schiller's Pension Consulting

Remote / San Mateo CA

View job as Writer-Editor
for Centers for Medicare & Medicaid Services [CMS] Writer-Editor

Centers for Medicare & Medicaid Services [CMS]

Remote / Washington DC

Selected New Discussions

Form 5500 Not Filed, and Audit Report Not Available

"A client has failed to file Forms 5500 for several years. For all years in question, the client was subject to the audit requirement. Unfortunately, prior to around 2016, information necessary for the auditors to do a complete audit is not available. Therefore, we are unable to get the auditors to sign off on those audit reports. Are there any recommendations on how to proceed?"

BenefitsLink Message Boards

Retirement Plan Assets: Protected from Creditors? What About Rollovers to an IRA?

"My understanding is that assets under a qualified ERISA plan are protected from creditors. I also understand that benefits transferred to an IRA from an ERISA plan retain their asset protection."

BenefitsLink Message Boards

Deferring 100% of Compensation Including Amount of Withheld Taxes

"Plan document says participant can defer up to 100% of compensation, which is defined for plan purposes as 415 compensation. But, as we all know, certain taxes are taken before the 401(k) can be deferred. Assume I make $5,000 this pay period, I want 100% of my pay deferred, $350 will be withheld for various taxes (like FICA), meaning my check is now $4,650. But my compensation was $5,000, and the SPD says 100% of comp, i.e., 415(c) comp, with no exclusions. Where does it say that $350 cannot be put into the 401(k) plan?"

BenefitsLink Message Boards

Press Releases

Maryellen Coggins Becomes President of the American Academy of Actuaries

American Academy of Actuaries

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Outlook for Retirement Legislation in the 117th Congress: Budget Reconciliation Bill and SECURE 2.0

November 16, 2021 WEBCAST

Western Pension & Benefits Council

End of Year Benefits 'To-Do' List

November 18, 2021 WEBCAST

Hunton Andrews Kurth

2021 ERISA Litigation: What You Need to Know

December 2, 2021 WEBCAST

Faegre Drinker

Last Issue's Most Popular Items

Text of IRS Notice 2021-61: 2022 Limitations Adjusted as Provided in Section 415(d), Etc. (PDF)

Internal Revenue Service [IRS]

SECURE Act Changes to 401(k)/403(b) Safe Harbor Plans (PDF)

Groom Law Group, via Journal of Pension Benefits

Limits on Mega, 'Back Door' Roths Reemerge

American Retirement Association [ARA]

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

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