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Retirement Plans Newsletter

May 27, 2022

3 New Job Opportunities 3 New Job Opportunities


[Guidance Overview]

Can We Self-Correct a Missed Restatement? You Bet! Well, Maybe...

"The IRS issued 'soft guidance' in the form of its Employee Plans News ... on May 23, 2022.... [1] The IRS does not regard failure to timely restate as a disqualifying defect in and of itself. This is a departure from positions the IRS has taken in the past. [2] Failure to timely restate transforms the preapproved plan into an individually designed plan. The reliance normally associated with a preapproved plan is gone.... The correct question is whether there are actual document failures that must be corrected."  MORE >>

Ferenczy Benefits Law Center

[Guidance Overview]

SEC Proposes ESG Disclosures for Investment Advisers and Investment Companies

"The proposal would require funds that consider ESG factors in their investment process to disclose additional information regarding their strategy. The amount of required disclosure depends on how central ESG factors are to a fund's strategy and follows a 'layered' framework[.]"  MORE >>

Did You Review Your Restatement Before Signing It?

"It is the employer as the plan sponsor that is responsible for ensuring that the new document correctly reflects the operation of the plan. If your recordkeeper or TPA is preparing your plan documents, they almost certainly have a provision in their service agreement which provides that it is you that is responsible for any errors.... The review is important because even a small error can cost a company a lot of money to correct."  MORE >>


Crypto in Retirement Plans: 401(k) vs. IRA

"Cryptocurrency has, until recently, not been available as part of a 401(k). However, due to the built-in features of 401(k) accounts, some may find that a 401(k) suits their needs for crypto allocations better than an IRA does, particularly sponsors. Here are some of the differences between how crypto functions in these two account types, and a breakdown of why crypto in a 401(k) brings more benefits for some investors and sponsors than in an IRA."  MORE >>


Senators Introduce Legislation to Strengthen Retirement and Emergency Savings

"Senate [HELP] Committee Chair Senator Patty Murray, D-Wash., and Ranking Member Senator Richard Burr, R-N.C., released the draft of the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg (RISE & SHINE) Act. ... [which] would: [1] bolster savings by allowing employers to offer emergency savings accounts; [2] expand access to employer-provided retirement plans through multiple employer plans, and through increased access to plans for part-time workers; and [3] improve communications to retirement plan participants and transparency around lump-sum buyout offers for pension plan participants."  MORE >>

401(k) Specialist

The Value of a Financial Advisor to Plan Sponsors, 2022

29 pages. "91% of plan sponsors agreed that having a dedicated financial advisor provided them with guidance on critical plan design options as their company scaled.... Eighty-seven percent of plan sponsors agreed that when a Financial Advisor is offered with the workplace retirement plan, the company as a whole has better plan outcomes, including higher employee participation (86%) and more eligible employees being on-track for retirement (86%)."  MORE >>

Morgan Stanley

Understanding the Impact of Russian Sanctions on Retirement Plans

"Plan fiduciaries may consider asking the following questions: [1] Is the plan currently invested in assets subject to sanctions and, if so, what is the form of investment (e.g., registered mutual funds, collective investment trusts, private funds, separate accounts)? [2] What steps are being taken to ensure that the plan and its underlying investments are in compliance with Russian sanctions? [3] To what extent does the plan have illiquid investments that may be adversely impacted by Russian sanctions?"  MORE >>

Kilpatrick Townsend

Some States Ban Pension Plans from Dealing with ESG-Backing Firms

"In Texas, West Virginia and Kentucky, legislatures have required state funds to limit transactions with companies that divest oil, natural gas and coal, according to news reports. West Virginia and Arkansas recently pulled out pension money run by BlackRock, whose chief has been vocal about fighting climate change. In Texas, a new law prevents state agencies from doing business with companies that the state comptroller determines are 'boycotting' fossil fuels."  MORE >>

Chief Investment Officer [CIO]

Employee Benefits Jobs

View job as Relationship Manager for Non-Qualified Retirement Plans
          for Newport Relationship Manager for Non-Qualified Retirement Plans


Remote / AZ / CA / CO / FL / GA / IA / IL / KS / MA / MD / MI / MN / MO / NC / NJ / NY / OH / SC / TX / VA / WI

View job as Relationship Manager for Non-Qualified Retirement Plans
          for Newport

View job as Client Service Manager for Non-Qualified Plans
          for Newport Client Service Manager for Non-Qualified Plans


Remote / AZ / CA / CO / FL / GA / IA / IL / KS / MA / MD / MI / MN / MO / NC / NJ / NY / OH / SC / TX / VA / WI

View job as Client Service Manager for Non-Qualified Plans
          for Newport

View job as Benefits Administrator
          for Infiltrator Water Technologies (IWT) Benefits Administrator

Infiltrator Water Technologies (IWT)

Winchester KY

View job as Benefits Administrator
          for Infiltrator Water Technologies (IWT)

Selected New Discussions

QDRO Can Require Plan to Pay Guardian Ad Litem Fees?

"We received a QDRO (just a draft at this point) under which the court is ordering the plan to pay the fees of the Guardian Ad Litem of the participant's minor child. I don't see any way this is possible. QDROs are only supposed to award benefits to an Alternate Payee who is a spouse, former spouse, child, or other dependent, right?"

BenefitsLink Message Boards

Hardship for the Purchase of Participant's Primary Residence -- Title to Be in Participant's Spouse's Name

"DC plan provides for hardship withdrawals using the 'safe harbor' definition. Ms. Jones wants a hardship withdrawal for the purchase of her primary residence. The catch: the home will be in her husband's name. Is this allowable?"

BenefitsLink Message Boards

Correction of Missed Deferral Opportunity That Spanned Two Plan Years

"I know the missed deferral opportunity amount is a percentage of the ADP of the group to which the participant belongs. But what if it crosses plan years? I have someone who was missed on 7/1/21 and we just found out about it this month. The ADP of his group was 3.25% for 2021. But do I have to calculate the 2022 ADP (next year!), or do I just use 3.25% for the entire period?"

BenefitsLink Message Boards

Fidelity Bond with Inflation Guard -- How to Report on 5500?

"Haven't seen this before. Fidelity bond coverage is lower than 10% needed, set at $20,000, but according to the agent, has a built in 'inflation guard' up to $500,000. Assuming that is fine, what would we report on the 5500? In this case $500,000 is greater than plan assets even."

BenefitsLink Message Boards

Convert Only After-Tax Employee Contributions via In-Plan Roth Rollover?

"Assume you have a Solo 401(k) that allows after-tax employee contributions and in-plan Roth rollovers and you have pre-tax money and after-tax employee money. Can you do an in-plan Roth rollover/conversion and convert only the after-tax amounts and exclude the pre-tax amounts from the conversion?"

BenefitsLink Message Boards

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Executive Compensation Academy — Granting Equity Abroad: Applicable Tax Considerations

June 9, 2022 WEBCAST

Hunton Andrews Kurth

Last Issue's Most Popular Items

American Benefits Council Comment Letter to IRS on Proposed Required Minimum Distribution Regs

American Benefits Council

SPARK Institute Comment Letter to IRS on Proposed Required Minimum Distribution Regs (PDF)

The SPARK Institute

Text of SEC Proposed Rule: Enhanced Disclosures by Certain Investment Advisers and Investment Companies About Environmental, Social, and Governance Investment Practices (PDF)

U.S. Securities and Exchange Commission [SEC]

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

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