BenefitsLink.com logo
EmployeeBenefitsJobs.com logo

Retirement Plans Newsletter

April 19, 2022

5 New Job Opportunities 5 New Job Opportunities

 

[Official Guidance]

Text of IRS Notice 2022-16: Weighted Average Interest Rates, Yield Curves, and Segment Rates for April 2022 (PDF)

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"  MORE >>

Internal Revenue Service [IRS]

[Sponsor]

ERISApedia.com – Offering Quality and Affordable Pricing

Don’t take our word for it. Read our Reviews to see for yourself what our subscribers say about us. Contact us at: sales@erisapedia.com 612-605-2266

Sponsored by ERISApedia.com

[Guidance Overview]

Best Interest Standard of Care for Advisors, Part 87: Specific Reasons for Rollover Recommendations That Won't Work (Part 1)

"While the DOL didn't provide any examples of reasons that would or would not be compliant, the SEC has.... [It] is likely that the DOL will follow the SEC's lead on this point.... [T]he mere existence of 'more investment options' is, standing alone, not a meaningful factor. Instead, the issue is whether having more investment options provides value to the particular investor. In order to make that determination, financial institutions and investment professionals should have an idea of how the participant will be invested in the IRA."  MORE >>

FredReish.com

[Guidance Overview]

DOL Issues Guidance on Cryptocurrency Retirement Plan Investments

"Note that the DOL urged 'extreme care' before considering a cryptocurrency investment vehicle ... The DOL does not say whether, and if so how, extreme care differs from prudence, but the Crypto Guidance outlines the DOL's concerns that presumably underlie its admonition to use 'extreme care' even before considering a cryptocurrency investment vehicle."  MORE >>

McDonald Hopkins

New York Federal District Court Dismisses 401(k) Fee Class Action

"[T]he court held that the plaintiff failed to allege sufficient facts to allow for inferences that the 'comparable plans' offered the same 'basket of services.'... The court held that the plaintiff's duty of loyalty claim was intrinsically dependent on her dismissed breach of prudence claim and therefore dismissed the breach of duty of loyalty claim." [Cunningham v. USI Ins. Servs., LLC, No. 21-1819 (S.D.N.Y. Mar. 25, 2022)]  MORE >>

Jackson Lewis P.C.

Alert (High Risk Issue) icon Physical Possession of American Eagle Coins Resulted in Taxable Distribution from Self-Directed IRA (PDF)

"According to the Tax Court, independent oversight by an IRA trustee or custodian to track and monitor an IRA's assets is one of the key aspects of the statutory scheme under Code Section 408. It explained that an owner of a self-directed IRA may not take actual and unfettered possession of the IRA assets.... 'Constructive [tax] receipt occurs where funds are subject to the taxpayer's unfettered command and she is free to enjoy them as she sees fit.' " [McNulty v. Commissioner, No. 1377-19 (T.C. Memo Nov. 18, 2021)]  MORE >>

The Wagner Law Group

Alert (High Risk Issue) icon Colorado Supreme Court: Public Employees Cannot Jettison Ex-Spouses from Retirement Benefits Without Court Approval

"Robert J. Mack of Colorado Springs, who retired from government work in 2012 and designated his then-wife as the beneficiary of his retirement benefits, argued to the Supreme Court that the trial judge overseeing his divorce was essentially compelled to honor his request to alter his retirement plan and allow the benefits to flow directly to Mack. But in an April 11 opinion, Chief Justice Brian D. Boatright indicated that while a retiree may make the request, Colorado law 'does not obligate the court to carry out the retiree's wishes.' " [In re marriage of Mack, No. 21SC62 (Colo. Apr. 11, 2022)]  MORE >>

Colorado Politics

401(k) Education Without Walls and Beyond Boundaries

"One of the most cost-effective methods for addressing the challenges of employee financial literacy training is video.... In addition to offering the advantage of privacy, videos have no bounds of use. It's been around for a while, but NetFlix et al have made 'binge-watching' a social norm. Is this habit about to trickle down into 401k education and financial literacy in general?"  MORE >>

Fiduciary News; free registration required

PBGC Approves Special Financial Assistance Application: Graphic Communications Union Local 2-C Plan

"The [PBGC] announced today that it has approved the application submitted to the Special Financial Assistance (SFA) Program by the Graphic Communications Union Local 2-C Retirement Benefit Plan. The plan, based in Warren, Michigan, covers 535 participants in the printing industry. The GCU 2-C Plan became insolvent in January 2015.... The plan will receive $40.8 million in SFA, including interest to the expected date of payment to the plan."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

PBGC Approves Special Financial Assistance Application: Teamsters Local 617 Pension Plan

"The [PBGC] announced today that it has approved the application submitted to the Special Financial Assistance (SFA) Program by the Teamsters Local 617 Pension Plan. The plan, based in Ridgefield, New Jersey, covers 891 participants in the transportation industry. The Local 617 Plan became insolvent in March 2020.... The plan will receive $155.8 million in SFA, including interest to the expected date of payment to the plan."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

PBGC Approves Special Financial Assistance Application: Detroit Newspaper Union Plan

"The [PBGC] announced today that it has approved the application submitted to the Special Financial Assistance (SFA) Program by the Retirement Benefit Plan of GCIU Detroit Newspaper Union 13N with Detroit Area Newspaper Publishers. The plan, based in Warren, Michigan, covers 563 participants in the printing industry. The Detroit Newspaper Union Plan became insolvent in April 2019.... The plan will receive $105.6 million in SFA, including interest to the expected date of payment to the plan."  MORE >>

Pension Benefit Guaranty Corporation [PBGC]

Empowered by Early Savings, Millennials Are Reshaping What It Means to Retire, with an Emphasis on Flexibility and New Experiences

"[W]hile Millennials have the jump on Boomers when it comes to saving for retirement by starting to save nearly a full decade earlier in their mid-20s, they are likely to spend less time managing their personal finances and investments once in retirement, as compared to Boomers or Gen X. Another significant generational shift ... is that Millennials will be more likely to use their savings to achieve their dream lifestyle and pursue their passions along the way and once in retirement, while Boomers and Gen X will aim to continue accumulating wealth during their retirement years."  MORE >>

Charles Schwab

Backdoor Roth IRA Conversions: Beware the Pro Rata Rule

"The pro rata rule kicks in when investors have a traditional IRA with both deductible and nondeductible contributions. Clients trip up on the idea they can simply convert a nondeductible contribution to a Roth IRA. There are workarounds to the rule, such as taking QCDs or rolling pretax funds into a 401(k)."  MORE >>

ThinkAdvisor

Executive Compensation and Nonqualified Plans

Equity Compensation Highlight: Stock Options and Restricted Stock (PDF)

"The tax treatment of stock options and that of restricted stock is different (e.g., in regards to the taxable amount and the timing of income inclusion, ability to make an 83(b) election, etc.). The situations in which it makes sense to grant stock options and those in which it makes sense to grant restricted stock often overlap, and it may be important to understand the differences and nuances of these two types of awards so that the one that best suits business objectives is used."  MORE >>

Patterson Belknap Webb & Tyler LLP

Employee Benefits Jobs

View job as DC Administrator
          for Aimpoint Pension DC Administrator

Aimpoint Pension

Remote

View job as DC Administrator
          for Aimpoint Pension

View job as Defined Benefit Administrator
          for Aimpoint Pension Defined Benefit Administrator

Aimpoint Pension

Remote

View job as Defined Benefit Administrator
          for Aimpoint Pension

View job as Senior Plan Administrator
          for PCS Retirement Senior Plan Administrator

PCS Retirement

Remote

View job as Senior Plan Administrator
          for PCS Retirement

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

PCS Retirement

Remote

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

View job as Pension Associate
          for Strategic Pension Services, LLC Pension Associate

Strategic Pension Services, LLC

Remote / Albany NY

View job as Pension Associate
          for Strategic Pension Services, LLC

Selected New Discussions

Does Any Broker-Dealer Allow Crypto in Its Self-Directed Brokerage Account?

"EBSA's Compliance Assistance Release No. 2022-01 (March 10, 2022) attracted attention about its suggestion: 'The plan fiduciaries responsible for... allowing [cryptocurrency] investments through brokerage windows should expect to be questioned about how they can square their actions with their duties of prudence and loyalty in light of the risks described [in the Release].' Does anyone know which SDBA providers allow crypto? Does anyone know of a provider that specifically excludes crypto from its SDBA product?"

BenefitsLink Message Boards

Press Releases

Manatt Welcomes Back Notable Tax and Employee Benefits Attorney in San Francisco

Manatt

Groom’s Levine Thomas Accepted Into MCCA’s 2022 Sources of Success Cohort

Groom Law Group

Business Group on Health Announces 44 Winners of Best Employers Award: Excellence in Health and Well-Being

Business Group on Health

HealthPass New York Appoints Davin Laurino as Senior Vice President of Sales

HealthPass New York

Edelman Financial Engines Launches Financial Wellness Program for Corporate Retirement Plan Participants in Partnership with the George Washington University’s Global Financial Literacy Excellence Center

Edelman Financial Engines

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

IRA Beneficiary Distributions: Part 1

May 12, 2022 WEBCAST

Ascensus

Last Issue's Most Popular Items

Section 403(b) Pre-Approved Plans Listing of Required Modifications and Information Package (LRM) (PDF)

Internal Revenue Service [IRS]

Proposed RMD Regulations Would Give Some a Break from the 50% RMD Excise for Missed RMDs

Appleby Retirement Dictionary

Ninth Circuit Applies Hughes v. Northwestern Supreme Court Standard In Overturning Two Motion To Dismiss Cases

Murphy Austin

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.