|
Retirement Plans Newsletter
December 10, 2021
|
|
New Job Opportunity Today
|
|
[Guidance Overview]
The Not So SIMPLE Life: What to Do When You Get Too Big for a SIMPLE
"Savings Incentive Match Plans for Employees (SIMPLEs) are for small business owners with 100 or fewer eligible employees.... You are deemed to satisfy the 100-employee limitation in the two calendar years in which you first exceed 100 eligible employees.... Once the grace period
is over, if you have more than 100 employees at the minimum earnings threshold, you must stop all employer and employee contributions to the SIMPLE." MORE >>
Ferenczy Benefits Law Center
|
The Supreme Court Considers Defined Contribution Plans
"The primary issue before the court was specific: whether to overturn a 7th Circuit judgment that defined contribution plans that offer both acceptable and unacceptable investment offerings fulfill their fiduciary duties, because employees may freely choose the sound options
while ignoring the duds.... That question may have been answered.... Most of the discussion, however, ranged elsewhere, and messily at that." [Hughes v. Northwestern Univ., No. 18-2569 (7th Cir. Mar. 25, 2020; oral arg. transcript Dec. 6, 2021)] MORE >>
John Rekenthaler, via Morningstar
|
Supreme Court Considers the Right Balance in ERISA Excessive Fees Case
"The justices search for the proper balance between preventing plan misconduct and imposing too many burdens on plan fiduciaries.... Justices Sotomayor and Kagan propose a middle ground.... The Court is wary of excessive litigation.... The Court seems unlikely to dispose of the
case on standing or the 'large menu' defense." [Hughes v. Northwestern Univ., No. 18-2569 (7th Cir. Mar. 25, 2020; oral arg. transcript Dec. 6, 2021)] MORE >>
Baker Botts L.L.P.
|
IRS Updates Guidance for COVID-19-Related Bona Fide Rehires
"According to the IRS, a rehire due to COVID-19-related 'unforeseen circumstances' generally would not disqualify an
individual's prior retirement from being considered a bona fide retirement under a defined benefit plan. However, the IRS cautioned that such a rehire cannot include any prearrangement to rehire the individual prior to the individual's retirement. Such a prearrangement still yields a retirement that is not 'bona fide.' " MORE >>
McDermott Will & Emery
|
What Every Plan Sponsor Should Know About Collective Investment Trusts
"CITs are leveraging the idea of providing the plan participants an advantage for pooling their retirement assets. It allows the participants to get the same investment strategy at a lower cost, which could often be lower than the lowest available share class in a mutual fund
counterpart." MORE >>
OneDigital
|
Benefits in General |
New ERISA Decisions Diverge on Federal Civil Procedure
"Over the past several months, there has been a flurry of federal appellate opinions questioning civil procedure norms in [ERISA] benefits litigation. A pair of brand new appellate decisions have also focused on the same issue, although not necessarily in a direction that
harmonizes ERISA civil procedure with the Federal Rules of Civil Procedure." [Avenoso v. Reliance Standard Life Ins. Co., No. 21-1772 (8th Cir. Nov. 30, 2021); Noga v. Fulton Financial Corp. Employee Benefit Plan, No. 19-3855 (3d Cir. Nov. 26, 2021)] MORE >>
DeBofsky Sherman Casciari Reynolds P.C.
|
Executive Compensation and Nonqualified Plans |
Year-End Checklist for Stock Options, Restricted Stock, and ESPPs
"[1] Should you plan for tax-law changes by Congress? ... [2] Income-shifting and multi-year planning ... [3] Withholding may not cover taxes owed ... [4] Incentive stock options ... [5] Year-end planning for pre-IPO and IPO
companies ... [6] Confirm dates for exercise and vesting: 2021 or 2022?" MORE >>
Bruce Brumberg, via Forbes; subscription may be required
|
How to Defer and Diversify RSUs
Video with summary outline. "Evolution of stock compensation plan design ... Loss over control of the timing of taxation ... Regaining control over the timing of taxation ... Advantage of tax deferral upon vesting of RSUs ... Diversification of RSUs
deferred ... Considerations and risk of deferring RSUs." MORE >>
Executive Benefit Solutions
|
Employee Benefits Jobs |
|
|
Selected New Discussions |
Correction per Rev. Proc. 2021-30 That Affects Only the HCEs? [Answer or Comments Still Sought]
"Has anyone used self-correction under the new Rev. Proc. 2021-30 for a correction by plan amendment that only affects HCEs?"
BenefitsLink Message Boards
|
Claim for Pension Benefit from Now-Terminated Plan of a Company We Acquired
"An individual claims he's due a pension benefit from Company A, which was acquired by Company B. Later we acquired Company B. The plan was terminated before we purchased Company B. We don't have any pension plan records. What obligations do we have to the
individual?"
BenefitsLink Message Boards
|
Successor Plan Problem When Starting New Plan Because Revenues Have Picked Up?
"Have a client who had to wind down his business, terminated the firm's PS/401(k) plan (5 people, if that matters) in 2020. Last distribution was made 2/19/2021 and a final form has been filed. This was not related to COVID. Business has started to come around. They would
like to adopt a Profit Sharing Plan for 2021. Would this violate the Successor Plan rule?"
BenefitsLink Message Boards
|
|
Press Releases |
Definiti Appoints New Chief Financial Officer
Definiti LLC
|
|
|
Last Issue's Most Popular Items |
The SECURE Act, RMDs, and Beneficiaries -- Another Wrinkle
Natalie Choate, via Morningstar
|
What Happens to the Retirement Plan During a Merger or Acquisition?
Definiti
|
IRS Reminder: Most Retirees Must Take Required Minimum Distributions by December 31
Internal Revenue Service [IRS]
|
Unsubscribe |
Change Email Address
Search Past Issues |
Privacy Policy
Submit an Article |
Contact Us |
Advertise Here
Copyright 2021 BenefitsLink.com, 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 BenefitsLink.com, 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.
BenefitsLink Retirement Plans Newsletter, ISSN no. 1536-9587.
Links to web sites other than BenefitsLink.com and EmployeeBenefitsJobs.com are offered as a service to our readers. We are not involved in their production and are not responsible for their content.
|