"Sponsors of prototype IRAs, SEPs, SARSEPs, and SIMPLE IRA plans should be aware that they cannot request opinion letters from the IRS until the IRS indicates otherwise, and instead they may: [1] Rely on a previously received favorable opinion letter from the IRS. [2] Amend their plan documents to reflect recent legislation. [3] Rely on IRS model documents[.]"  MORE >>

"Until [Compliance Assistance Release 2022-01], the DOL has not ... provided any guidance about a fiduciary's responsibility for brokerage window options ... In the Release, however, the DOL stated that plan fiduciaries 'allowing such investments through brokerage windows should expect to be questioned' ... This is the first statement from the DOL indicating that fiduciaries have duties of prudence and loyalty for investment options offered through a window."  MORE >>

"Because the Proposed Regulations will therefore not apply identically to all plans, employers should determine their application on a plan-by-plan basis.... Employers should ... review their current administration ... in light of the relevant rules.... Employers should ... track participant ages and employment status in light of the plan rules regarding RMD commencement and review beneficiary designations so that any gaps or uncertainties can be addressed proactively."  MORE >>

"[T]he Plan trustees ... determined they had to change their interpretation of the term 'retire' under the Plan because allowing participants who were not fully retired ... to receive pension payments was putting the Fund in jeopardy of losing its tax-exempt status.... [T]he appellate court reasoned that Defendants' reinterpretation of 'retire' did not constitute an 'amendment' of the plan because its actual terms had not changed. In addition, under Defendants' reinterpretation, Plaintiffs were never entitled to the accrued benefit they claimed to have lost." [Metzgar v. U.A. Plumbers and Steamfitters Local No. 22 Pension Fund, No. 20-3791 (2d Cir. Mar. 2, 2022)]  MORE >>

"[Enhancing retirement readiness is] potentially achieved by leveraging the combination of the 401k's purchasing power relative to that of the retail consumer ... combined with heightened product innovation ... [A recent] IRIC paper examined three different scenarios which underscore the additional income and end savings a plan participant can garner by keeping assets in the plan and taking advantage of these lower costs."  MORE >>

"Identifying an exclusion or election implementation error can be a reactive or proactive exercise.... EPCRS provides a 'safe harbor' self-correction option to correct these failures. The scope of the correction depends on how long the error has been ongoing and certain employer preferences."  MORE >>

"[T]he IRS treats a lump-sum payout of unused vacation as 'supplemental wages' subject to Social Security and Medicare taxes ... [As] supplemental wages, a lump-sum payout of unused vacation would be included in the definition of compensation for plan purposes -- unless it is explicitly excluded under the terms of the plan document."  MORE >>

"Investors have endured quite a roller coaster ride over the last couple of years. They've experienced the sharp drop in early 2020, the quick rebound, the minor twists and turns during a steadily steep ascent through the rest of 2020 and all of 2021, and now a strange and confusing start to 2022. Volatile times remind us of the need to ensure retirement plan participants have a game plan."  MORE >>

"71% of Americans very concerned about impact of inflation on retirement preparedness. Almost half of next generation don't see the point in saving for retirement until normalcy returns. 21% who left job during great resignation cashed out 401(k) after leaving. Planning can play transformative role, providing greater peace of mind during uncertain times."  MORE >>

"The effects of worker misclassification on employee benefit plans may include, but are not limited to: [1] failure to provide employee benefit coverage and appropriate remedial action; [2] failure to make employer and employee contributions to retirement and other employee benefit plans; [3] failure to provide the individual with required benefit plan disclosure and administrative notices; and [4] excise taxes under the [ACA] for failure to provide required health plan coverage."  MORE >>

"There are a few possible ways for companies to incorporate risk, including risk adaptation, risk scoring and risk measurement.... In today's high-risk environment, conscious, thorough, informed management and oversight of risk is imperative. Including a measure in incentive plans also ensures it receives proper board oversight as well as a high and consistent level of attention."  MORE >>