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Retirement Plans Newsletter

January 4, 2022

6 New Job Opportunities 6 New Job Opportunities


[Official Guidance]

Text of 2022 IRS Form W-4P: Withholding Certificate for Periodic Pension or Annuity Payments (PDF)

"Complete Form W-4P to have payers withhold the correct amount of federal income tax from your periodic pension, annuity (including commercial annuities), profit-sharing and stock bonus plan, or IRA payments."  MORE >>

Internal Revenue Service [IRS]

[Official Guidance]

Text of 2022 IRS Form W-4R: Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions (PDF)

"Complete Form W-4R to have payers withhold the correct amount of federal income tax from your nonperiodic payment or eligible rollover distribution from an employer retirement plan, annuity (including a commercial annuity), or individual retirement arrangement (IRA)."  MORE >>

Internal Revenue Service [IRS]

[Official Guidance]

Text of 2021 IRS Form W-4P: Withholding Certificate for Pension or Annuity Payments (PDF)

"Form W‐4P is for U.S. citizens, resident aliens, or their estates who are recipients of pensions, annuities (including commercial annuities), and certain other deferred compensation. Use Form W‐4P to tell payers the correct amount of federal income tax to withhold from your payment(s). You may also use Form W‐4P to choose (a) not to have any federal income tax withheld from the payment ... or (b) to have an additional amount of tax withheld. Your options depend on whether the payment is periodic, nonperiodic, or an eligible rollover distribution."  MORE >>

Internal Revenue Service [IRS]

[Guidance Overview]

DOL Waves Caution Flag for 401(k) Private Equity Investing

"While the Supplement does not slam the brakes on private equity investments in 401(k) plans, it emphasizes the tension between the current DOL's views and those of the prior administration. As we have seen in other contexts, such as environmental, social, and governance (ESG) investing and proxy voting, this tension has evolved into a sort of regulatory ping pong match that we expect may continue."  MORE >>

Morgan Lewis

[Guidance Overview]

Illinois Teachers' Retirement System Supplemental Savings Plan Update

"On January 10, 2022, teachers will be able to begin submitting applications to the Illinois Teachers' Retirement System (TRS) to participate in TRS's new Supplemental Savings Plan which is a tax-deferred compensation program under Section 457(b) of the United States Internal Revenue Code. Payroll deductions for participants are expected to start in March, 2022."  MORE >>

Franczek P.C.

Creative Use of DC Plan Design Can Get Participants Back on Track

"[T]he point when an individual is struggling and considers lowering or stopping his retirement savings is a good time for plan sponsors to capitalize on the behavioral economics theory of present bias -- where individuals focus on the present benefits of something rather than on the future ... Plan sponsors can offer these employees a path back to savings[.]"  MORE >>

PLANSPONSOR; free registration may be required

Exceptional Usefulness and Quality icon The DC Annuity Fog, Revisited

"[A] contract with a licensed insurance carrier is still the only way any company can actually 'guarantee' lifetime payments to a plan or its participants, even if you are using a CIT or an IRA custodian to provide the payment of the benefit.... [T]here has to be a lot of technical coordination between the computer and recordkeeping platforms of a number of different service companies, including single plan trusts, CITs, IRA custodians, insurers and anyone else in the 'chain' of providing these benefits."  MORE >>

Business of Benefits

Congress Makes 100% ESOPs Eligible for Small Business Set-Asides

"The National Defense Authorization Act, signed into law by President Biden on December 27 ... creates a Department of Defense pilot program that would allow companies that are or become 100% ESOP-owned to receive noncompete follow-on contracts for the work, even if they no longer meet applicable small business or other set-aside requirements.... The program will run for five years, and the [GAO] is required to provide an assessment of it within three years of the program's enactment."  MORE >>

National Center for Employee Ownership [NCEO]

FAS87 ASC715 Discount Rates and Moody's Rates, December 31, 2021

An unofficial monthly report of the Moody's Daily Long-term Corporate Bond Yield Averages and Moody's Daily Treasury Yield Averages (used as benchmarks by some corporate pension plans).  MORE >>

BenefitsLink Message Boards

For Retirees, When Inflation Arrives Is as Important as Its Magnitude

"The timing of stock-market performances doesn't matter to those who are preparing for retirement, assuming they stay the course. Ten years of poor returns followed by 10 years of strong returns is the same when reversed. Either way, investors reach the same place. Not so for retirees: Early declines cause more damage. The reason is twofold."  MORE >>



The Pension Is Dead; Is the 401(k) Next?

"If you're younger than 40 years old, you may not even know what a pension is.... Although the 401(k) plan isn't likely to go the way of the pension plan, there may be significant changes ahead.... The Biden administration's proposal would change the current 401(k) tax deduction into a tax credit.... [F]or some workers, the proposed changes will amount to a huge windfall."  MORE >>


Benefits in General

[Official Guidance]

IRS Disaster Relief Notice CO-2022-01, for Colorado Wildfires and Straight-Line Winds

"Victims of wildfires and straight-line winds beginning December 30, 2021 now have until May 16, 2022, to file various individual and business tax returns and make tax payments ... Individuals and households affected by the wildfires and straight-line winds that reside or have a business in Boulder county qualify for tax relief."  MORE >>

Internal Revenue Service [IRS]

Biden's EBSA Nominee Back on the Docket

"While it appeared the nomination of Lisa Gomez to serve as Assistant Secretary for EBSA at the [DOL] was in jeopardy after having been included in a list of nominees that would not carry over to the new year, the Senate Health, Education, Labor and Pensions (HELP) Committee has now scheduled a January 5 nomination hearing for her, along with several other nominees."  MORE >>

American Retirement Association [ARA]

Executive Compensation and Nonqualified Plans

Upcoming Deadline icon Reminder: Employers Must Report 2021 ISO and ESPP Transactions

"Deadlines are approaching for employers to report last year's employee exercises of incentive stock options and employee stock purchase plan purchases ... Form 3921 is used to report ISO exercises, and Form 3922 is used for ESPP share purchases. A separate form must be provided and filed for each exercise or purchase during the calendar year."  MORE >>

Latham & Watkins

Employee Benefits Jobs

View job as Retirement Account Administrator
for Alerus Retirement Account Administrator



View job as ESOP Retirement Account Administrator, Senior
for Alerus ESOP Retirement Account Administrator, Senior



View job as Retirement Plan Specialist
for RTD Financial Advisors Retirement Plan Specialist

RTD Financial Advisors

Philadelphia PA / Cherry Hill NJ

View job as Employee Benefits Associate
for Shipman & Goodwin LLP Employee Benefits Associate

Shipman & Goodwin LLP

Hartford CT / New Haven CT / Stamford CT

View job as Junior Employee Benefits Recordkeeper
for American Pension Advisors, Ltd. Junior Employee Benefits Recordkeeper

American Pension Advisors, Ltd.

Indianapolis IN

View job as 401(k) Consultant/Account Manager
for TPS Group 401(k) Consultant/Account Manager

TPS Group


Selected New Discussions

Self-Directed Investment in Hedge Fund Run by the Plan Sponsor

"A client is a Private Equity Fund. Uses participant-directed accounts. One of the plan participants wants to know whether it's OK to invest in the firm's own hedge fund. Would that be legal?"

BenefitsLink Message Boards

Effect of 3-Day Weekends During 2022 on Various Filing Due Dates

"Some 2022 holidays are observed on a Friday or Monday, so there will be 10 or 11 3-day weekends for many workers. For most of us, the due date for 2021 personal income tax returns is April 18. For residents of Maine or Massachusetts, it's April 19. For retirement, health, and other employee benefit plans, the due date for a plan's Form 5500 report on 2021 is August 1. The typical extended due date is October 17."

BenefitsLink Message Boards

Press Releases

TRA Appoints Chad Empey Chief Financial Officer

The Retirement Advantage [TRA]

LIMRA’s Newest Enhancements to Data Exchange Standards Allow for Enrollment in All Employee Benefits Plans


Governance Attorney David C. Strosnider Joins Chicago Office of McDonald Hopkins

McDonald Hopkins

Employee Benefit Insurance Carriers Meet COVID Vaccination Accommodation Requests with the FINEOS Integrated Disability and Absence Management (IDAM) Solution

FINEOS Corporation

Fiduciaries to Utica, New York Employee Stock Ownership Plan Agree to Take Actions to Resolve Violations Found in DOL Investigation

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

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Plan Design During Challenging Times


Voya Financial

Last Issue's Most Popular Items

Hitting the Reset Button for 2022 RMDs

Slott Report

The Great American Retirement Fraud

Michael Doran, via SSRN

PEP Look-Alikes Launched to Reduce Costs, Headaches

Pensions & Investments

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

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