"It's not clear what factors the IRS will consider when determining whether to conduct a limited or full scope audit following a plan sponsor's response. However, it stands to reason that a plan sponsor's efforts at good faith compliance with the correction requirements may serve to limit the scope because typically the IRS wishes to promote self-correction efforts."  MORE >>

"Provisions in the RISE and SHINE Act not in SECURE 2.0 include: [1] Allowing the use of plan assets to pay some incidental plan design expenses; [2] Raising the limit on mandatory cash-out distributions from $5,000 to $7,000; and ... [3] 401(k) plans could include emergency savings accounts."  MORE >>

"[T]he Advancing Auto-Portability Act of 2022 [S 4406] was introduced by Senators Tim Scott, R-South Carolina, and Sherrod Brown, D-Ohio.... [T]he legislation would allow workers' 401(k) savings accounts to be automatically rolled over from a previous employer to a new employer."  MORE >>

"As PEPs mature, ... fee structures will evolve as well. In general, PEPs fees are based on some combination of ... [1] Fixed annual fee; [2] Per participant charge; [3] Asset-based fee; [4] 3(16) plan administration fiduciary fees; [5] 3(38) investment management fiduciary fees; [6] Ad hoc and/or one-time administrative fees.... PEP fees differ substantially by provider for the same plan sponsor."  MORE >>

"[O]ne barrier to small companies providing retirement plans ... [is] the difficulty for small businesses in accessing quality third party administrators and other resources. Every vendor wants to land a big employer as a client, but not all are prepared to or interested in servicing small shops with correspondingly small plans. This often leaves smaller companies to use weaker vendors, leading to increased mistakes and other problems with administration[.]"  MORE >>

"The average Annuity Purchase Interest rates continue to climb, with the average duration 7 rate at 3.82% and average duration 15 rate at 3.87%. Annuity Purchase costs relative to pension accounting value (GAAP PBO) are well below [the] historical averages, suggesting a suitable time for plan sponsors to implement a Pension Risk Transfer strategy for even a subset of the population."  MORE >>

"Current retirees wish they'd saved more and planned earlier for retirement.... Retirees seem to fare better when they have an advisor.... Few retirees (24 percent) reported that their former employer offered financial planning assistance ... Many retirees don't have a formal financial plan for retirement."  MORE >>

15 pages. "The pandemic is projected to have continuing significant effects on the OASI and DI programs in the near term ... If changes to the program are not implemented before 2035, only 80% of scheduled benefits would be payable after depletion in 2035, declining to 74% by 2096. The actuarial deficit decreased from 3.54% of taxable payroll to 3.42% of taxable payroll[.]"  MORE >>

"401(k) plans are permitted to allow incoming rollovers of pre-tax assets only. Roth IRA or after-tax (nondeductible) funds cannot be rolled over into a 401(k) or any other employer-sponsored retirement plan."  MORE >>

"[E]mployers could consider reimbursing employees for their automobile mileage, as many tax professionals believe that such reimbursements qualify as a working condition fringe benefit, which generally means that if the employee paid for such expense, it would be deductible to the employee as a business expense."  MORE >>

"Some prominent U.S. companies are being sued by remote workers alleging that their employers had a legal obligation under state law to reimburse them for work-related expenses.... If employers decide to adopt reimbursement policies, ... these policies should: [1] Clearly define and provide reimbursement for legitimate expenses associated with telecommuting. [2] Include proportional reimbursement for expenses that have dual business and personal uses."  MORE >>