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Retirement Plans Newsletter

March 10, 2022

4 New Job Opportunities 4 New Job Opportunities


[Guidance Overview]

IRS General Instructions Provide Needed Guidance for Filing 2022 Forms 1099-R and 5498

"Qualified plan distributions of $10 or more in 2022 must be reported to the IRS on this version of Form 1099-R. The deadline for providing the 2022 Form 1099-R to plan participants and beneficiaries is January 31, 2023. Copy A must be filed with the IRS by February 28, 2023, for scannable paper filings, and by March 31, 2023, for electronic filings. The 2022 Form 5498 generally must be filed and provided by May 31, 2023, but some information ... must be furnished by January 31, 2023."  MORE >>

Thomson Reuters / EBIA

Why Account Consolidation Is Vital in Reducing 401(k) Cybersecurity Risk

"A key principle in loss prevention is that 'big frauds start small.' ... In recent years, there's been a very well-documented explosion of both small-balance 401k accounts and small-balance IRAs, which can present tempting targets, as system controls and monitoring can often be lax."  MORE >>

401(k) Specialist

Protecting 401(k) Plans from Cyberattacks

"Open discussions with all of your service providers about encryption, user authentication, privacy protection and other procedures they are implementing to ensure your retirement plan client's data is safe. Here are some great conversation starters."  MORE >>

Fiduciary Benchmarks

Tomorrow's Retirees Feel Less Financially Secure Than Today's

"Forty-six percent of near retirees do not expect income from a defined benefit pension compared to only 23 percent of retirees.... Sixty-five percent of retirees believe their Social Security benefits and pension provide adequate income. Only 40 percent of near retirees believe this will be the case. Eight in ten near-retirees fear that costs related to retirement medical care will be overwhelming, prompting concern about the adequacy of their retirement income."  MORE >>

Insured Retirement Institute [IRI]

Small Businesses as Plan Sponsors Are the Future of 401(k) Retirement Plan Services

"Small businesses represent most U.S. companies, and they employ about half of the country's workforce -- yet half or more do not offer retirement plans. It's an opportunity the financial services industry has long snubbed, as cost-competitive 401(k) services for small plans have lacked the profit potential of much larger ones. But that is changing quickly, and retirement plan coverage could increase dramatically."  MORE >>

InvestmentNews; subscription may be required

U.S. Supreme Court Opines on Fiduciary Responsibilities in Design of Self-Directed Plans

"A few lower court decisions issued after Northwestern refused to dismiss the claims, which could mean that in the future fiduciaries might find it more difficult to have cases dismissed at an early stage and avoid trials. Just offering a broad selection of investment choices won't protect fiduciaries from being sued. In fact, if a menu has a very large number of funds, it is likely that one or more funds in the mix could be cited as imprudent." [Hughes v. Northwestern Univ., No. 19-1401 (S. Ct. Jan. 24, 2022)]  MORE >>

Carol I. Buckmann, for PenChecks

Proposed Legislation Would Mandate 401(k) Auto-Reenrollment

"The Auto Reenroll Act would require a plan to impose a 3-year auto-reenrollment rule on 401(k) plans in three circumstances: [1] To qualify for the automatic contribution testing safe harbor ... [2] To allow 'permissible withdrawals' ... [3] To assert that certain state wage withholding laws are preempted.... [T]his bill does not have bipartisan sponsorship. There is, however, some bipartisan sentiment in favor of reenrollment programs generally[.]"  MORE >>

October Three Consulting

How Some States Are Addressing Recruitment and Retention of Public Employees with Pensions

"[Some states], including Kentucky, Oklahoma, Kansas, and Alaska, are attempting to make positive changes to pension benefits for firefighters, correctional officers, state employees, and teachers. In Oklahoma and Alaska, lawmakers are examining whether to re-open pension systems for public employees who have been denied a defined-benefit pension for years.... Several state and local governments have ... gone back to offering a defined-benefit pension again."  MORE >>

National Public Pension Coalition [NPPC]

High Inflation Leads to Expensive Cost-of-Living Adjustments for CalPERS and Others

"For CalPERS members, those who retired between 2006 and 2014 will receive the biggest increase at 4.7%. This will be the largest cost-of-living increase for beneficiaries in the past 32 years, dating to 1990."  MORE >>

Chief Investment Officer [CIO]

AME Church Halts Retiree Payouts Amid Probe Into Missing Funds

"The African Methodist Episcopal Church, among the largest U.S. Protestant denominations, has suspended retirement payments and discussed steep cuts to the savings of its ministers amid an investigation into missing funds ... The church said federal law enforcement and an outside law firm are investigating 'a possible financial crime' involving funds managed by its retirement-services department covering about 5,000 participants, including ministers and bishops."  MORE >>

The Wall Street Journal; subscription may be required

Employee Benefits Jobs

View job as Senior Plan Document & Compliance Specialist
for PCS Retirement Senior Plan Document & Compliance Specialist

PCS Retirement


View job as Senior Plan Document & Compliance Specialist
for PCS Retirement

View job as Relationship Manager
for PCS Retirement, LLC Relationship Manager

PCS Retirement, LLC


View job as Relationship Manager
for PCS Retirement, LLC

View job as Client Relationship Manager
for MAP Retirement Client Relationship Manager

MAP Retirement


View job as New Business Coordinator
for MAP Retirement New Business Coordinator

MAP Retirement


Selected New Discussions

Partner with Negative Self-Employment Income; Effect of PPP Forgiveness

"One of the partners in the 401k plan has negative self-employment income (line 14a). Of course, the partner deferred into the plan.... $12,000. I brought this up to the CPA. He's saying that while the partnership lost money, the PPP forgiveness is creating a positive situation for the partner. Do I care about the PPP forgiveness and just go with the line 14a? In this situation could I leave $6,500 catch up in the plan and 415 refund the $5,500? Need some insight on this situation on what to do."

BenefitsLink Message Boards

Unable to Open SEP-IRA for Undocumented Employee

"Employer needs to make a SEP-IRA contribution, and an employee is unable to open an account to receive her contribution because she could be undocumented, and that's blocking custodians from opening an account for her. Any idea what the employer should do if a custodian won't open an account to receive the contribution?"

BenefitsLink Message Boards

Permissible SCP Correction? Retroactive Adoption of Plan When Affiliates Had Failed to Expressly Adopt

"A parent company plan sponsor has affiliates that are part of an affiliated group as defined by the Code. The plan document states that employees of the affiliates can participate in the parent company plan as long as the affiliated companies adopt the parent's plan. Unfortunately, employees of the affiliates participate in the parent's plan, but the affiliates never adopted the plan, and the plan is now under investigation by the IRS. My proposed solution is that SCP allows for self correction of insignificant operational errors even if the plan is under investigation. Any comments or concerns with this approach using SCP?"

BenefitsLink Message Boards

Press Releases

Michael Farber Joins Ascensus as Regional Vice President


Webcasts and Conferences
(Retirement Plans / Executive Compensation)

The Proposed RMD Rules: Feeling SECURE Yet?

March 30, 2022 WEBCAST

Collective Investment Trusts and 401(k) Plan Investments: Guidance for Fiduciaries and Employee Benefits Counsel

May 11, 2022 WEBCAST


Last Issue's Most Popular Items

2022 Compliance Considerations for ERISA Single Employer Defined Contribution Plan Operations


IRS Releases Proposed Required Minimum Distribution Regs


IRS Proposes New Regs on Minimum Required Distributions to Implement the SECURE Act


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

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