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Retirement Plans Newsletter

February 23, 2022

5 New Job Opportunities 5 New Job Opportunities


[Official Guidance]

Text of IRS Proposed Regs: Required Minimum Distributions

275 pages. "These proposed regulations would update several existing regulations under sections 401(a)(9), 402(c), 403(b), 457, and 4974 to reflect statutory amendments that have been made since those regulations were last issued. These proposed regulations also clarify certain issues that have been raised in public comments and private letter ruling requests. These proposed regulations also replace the question-and-answer format of the existing regulations under sections 401(a)(9), 402(c), 408, and 4974 with a standard format."  MORE >>

Internal Revenue Service [IRS]


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Filing 5500s and 8955-SSAs has never been easier. ASC’s fully web-based system compliant with EFAST2, includes batch “move forward” & 5558 creation, integration with ASC’s Document, Recordkeeping/Compliance, Gemini and CRMW systems. Learn More!

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[Guidance Overview]

Exceptional Usefulness and Quality icon Missing Participants: The Search Continues

"In light of the DOL's three-part guidance, plan fiduciaries ... [should] work with their plan recordkeepers to ensure appropriate measures are taken to address and reduce missing participant issues. Those measures should be clearly described in a written policy ... [which] should also describe the plan sponsor's procedures for handling uncashed checks.... [Ongoing] efforts to locate missing participants should be documented[.]"  MORE >>

Trucker Huss

[Guidance Overview]

Correcting 401(k) Plan Excess Elective Deferrals

"Unless they are timely distributed, excess elective deferrals are in included in a participant's gross income for the year in which they were made to a plan, and for the year in which they are distributed from the plan. A distribution of excess elective deferrals is reported on IRS Form 1099-R (not on Form W-2 or a corrected Form W-2)."  MORE >>

Verrill Dana LLP

[Guidance Overview]

Cycle 3 Defined Contribution Plan Restatements and Other Plan Document Updates (PDF)

"We are less than six months away from the Cycle 3 defined contribution pre-approved plan restatement deadline, which is July 31, 2022! ... If you are a pre-approved plan Provider and have not already gotten all or most of your restatements completed, now is the time to focus on getting your clients' PPA 401(k), profit sharing, money purchase and ESOP plans onto the updated Cycle 3 versions!"  MORE >>


[Guidance Overview]

Revised Actuarial Standard Will Require Disclosure of Market-Based Liability

"While the ASOP revision includes changes to a number of technical items relating to funding calculations and related disclosures, the most controversial change is the addition of a requirement to calculate and disclose a 'Low-Default-Risk Obligation Measure,' which is the value of liabilities using an interest rate derived from low-default-risk fixed income securities."  MORE >>


Supreme Court Provides Guidance for Plan Fiduciaries on Duty of Prudence with Respect to Plan Investments (PDF)

"[F]iduciaries should ensure that benchmarks and standards for evaluating investments and fees are formalized in their plan's investment policy statement and/or other applicable governance documents. Moreover, such regular review should be adequately documented in the plan's records in order to demonstrate that fiduciaries are prudently monitoring plan investments." [Hughes v. Northwestern Univ., No. 19-1401 (S. Ct. Jan. 24, 2022)]  MORE >>

Roberts & Holland LLP

Recent State Fiduciary and Best Interest Developments

"Pennsylvania has adopted legislation implementing the model regulation concerning suitability in annuity transactions adopted by the National Association of Insurance Commissioners (NAIC). This brings to 19 the total number of states adopting the NAIC suitability model. Nevada may be the next state to watch."  MORE >>

Faegre Drinker

De-Risking in 2022, Part 1

"[W]hile somewhat volatile, interest rates increased over 2021, with medium-term (2nd segment) rates up around 40 basis points (longer-term, 3rd segment rates were generally flat). These increasing rates present a number of significant and complicating issues for sponsors considering de-risking."  MORE >>

October Three Consulting

DOL Reviewing Wells Fargo Bank 401(k) Plan

"The [DOL], along with other federal agencies, is reviewing transactions connected to the employee stock ownership portion of the 401(k) retirement account. The agencies are looking into the way the 401(k) plan purchased certain securities used in connection with company contributions, according to the [Wells Fargo disclosure filing]."  MORE >>

Charlotte Observer

2022 'Paycheck or Pot of Gold' Study

"In the last five years, the proportion of retirees depleting their lump sums continues to grow ‐- and they are being depleted more quickly. Today, 1 in 3 retirees who took a lump sum from a defined contribution plan depleted their lump sum, on average, in 5 years."  MORE >>


Benefits in General

[Official Guidance]

Second Quarter Update to IRS 2021-2022 Priority Guidance Plan (PDF)

31 pages. Employee benefits items begin on page 3, including 19 retirement-related projects and 17 projects related to executive compensation, employment taxes, health care, and other benefits.  MORE >>

Internal Revenue Service [IRS]

Courts Continue to Split Over Enforceability of Benefit Plan Arbitration Provisions

"Recent decisions show that courts remain split on key issues, including the interpretation of the U.S. Supreme Court's decision in LaRue v. DeWolff, Boberg & Assoc., who must/can consent to a plan amendment, and the applicability and application of the 'effective vindication' doctrine. Recent court decisions in the Seventh Circuit, as well as Delaware, New York, and Florida district courts have reached different results, and for different reasons."  MORE >>

Holland & Knight

Born in the USA, But I'm a Cool Rockin' Employee Not in the USA Now

"Employers may need to consider customized health care solutions to specifically cover employees living in a foreign country.... Typically, qualified retirement plan participation is not affected for U.S. citizens living and working abroad for a limited period of time.... Employers should also consider childcare benefits, employee wellness programs, tuition reimbursement, travel insurance and expense reimbursement benefits[.]"  MORE >>

Holland & Hart LLP

Changes to Your Annual Employee Benefit Plan Audits Are Here: What You Need to Know

"The official 110-page SAS 136 includes a plethora of information and changes that affect all phases of the audit, including engagement acceptance to reporting. [Two] key provisions may have significant implications for plan sponsors. [1] Communication and disclosure of management's responsibilities in the engagement letter.... [2] ERISA Section 103(a)(3)(C) audits and the auditor's opinion."  MORE >>

Withum Smith+Brown, PC

Employee Benefits Jobs

View job as Retirement New Business Development Manager (Sales)
for GuideStone Financial Resources Retirement New Business Development Manager (Sales)

GuideStone Financial Resources

Remote / Dallas TX

View job as Retirement New Business Development Manager (Sales)
for GuideStone Financial Resources

View job as Regional Sales Director
for BPAS Regional Sales Director


Remote / Syracuse NY

View job as Regional Sales Director
for BPAS

View job as Retirement Plan Administrator
for Hessel & Associates, LLC Retirement Plan Administrator

Hessel & Associates, LLC

Remote / IL

View job as Economist (Data Scientist)
for Pension Benefit Guaranty Corporation [PBGC] Economist (Data Scientist)

Pension Benefit Guaranty Corporation [PBGC]

Remote / Washington DC

View job as Economist
for Pension Benefit Guaranty Corporation [PBGC] Economist

Pension Benefit Guaranty Corporation [PBGC]

Remote / Washington DC

Selected New Discussions

Failed ADP/ACP Test, But HCE Terminated and Already Took 100% of Account

"Client company sold and all of the HCEs terminated in May 2021. They immediately took distributions. I'm now running the ADP/ACP test and I find that a corrective distribution was due to one of the HCEs. Does the individual need to have the platform reissue the 1099-R? If they rolled over the funds, do they have to withdraw it from their IRA?"

BenefitsLink Message Boards

Press Releases

Comparing Medicare Prescription Drug Plans Can Save Retirees Hundreds of Dollars


Brian Giles Joins Ascensus' Retirement Product and Solutions Group as Director of Sales


Last Issue's Most Popular Items

Is It Time for a Collective Investment Trust?


CRS In Focus: The Social Security Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)

Congressional Research Service [CRS]

Best Interest Standard of Care for Advisors, Part 82: Correction of Violations of PTE 2020-02

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

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