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Retirement Plans Newsletter

August 5, 2022

2 New Job Opportunities 2 New Job Opportunities

 

[Guidance Overview]

IRS Grants Three-Year SECURE/CARES Extension

"For most plans, the new amendment deadline is December 31, 2025.... [T]his is a fixed date which does not depend on the plan year or the employer's tax year. It applies to union and nonunion plans. There are several important exceptions."  MORE >>

Ferenczy Benefits Law Center

[Guidance Overview]

IRS Provides Three-Year Extension for SECURE Act Amendments and Additional Limited Relief

"The IRS expects that certain SECURE Act guidance will be included on the 2023 Required Amendments List for individually-designed plans, which would keep the amendment timing in line with [the new] deadlines.... [Notice 2022-33] does not address an extension for coronavirus-related distributions and loans ... [A]mendments for those provisions remain due by the end of first plan year beginning on or after January 1, 2022."  MORE >>

Groom Law Group

[Guidance Overview]

IRS Extends SECURE, CARES Act Amendments Deadline

"[A]ffected plans will still need to ensure operational compliance with the law changes prior to the amendment deadline. The longer plan sponsors wait to adopt these amendments, the greater the chance for compliance errors. And extending the deadline also doesn't provide additional help for plans terminating before 2025 which may not have the benefit of the additional IRS guidance."  MORE >>

Cohen & Buckmann, P.C.

[Guidance Overview]

The Impact of Missing the July 31, 2022, Deadline for Restating Pre-Approved 401(k) Plans

"Depending on the circumstances, some failures may require obtaining formal approval from the IRS through its Voluntary Correction Program, while others may be eligible for self‑correction.... If failing to timely restate a pre-approved plan results in any interim or discretionary amendments being defective, the plan may be corrected through the IRS Employee Plans Compliance Resolution System (EPCRS). "  MORE >>

Jackson Lewis P.C.

[Guidance Overview]

IRS Throws a Curveball: New 90-Day Pre-Audit Review

"An internal review of plan operations can be pretty daunting. The IRS's announcement is incredibly broad and completely devoid of references to common errors or specific areas of focus. ... [D]iligent plan sponsors will begin with a provision-by-provision review of the plan document or adoption agreement, much like the plan design review that occurs within a recordkeeper transition."  MORE >>

Qualified Plan Advisors

Elderly Americans' Retirement Expectations Remain Uninterrupted Despite COVID-19 Impact

"Elderly American adults did not adjust their retirement expectations significantly, including planned retirement age and Social Security benefit claiming age, despite many respondents indicating that the COVID-19 pandemic had impacted their work and financial situations in the 2020 HRS."  MORE >>

Employee Benefit Research Institute [EBRI]

Pension Funding Index, August 2022

"The funded status of the 100 largest corporate defined benefit pension plans decreased by $19 billion during July ... Pension liabilities soared due to a decrease in the benchmark corporate bond interest rates used to value those liabilities. As of July 31, the funded ratio dropped to 104.5%, down from 105.9% at the end of June. Despite the decline, July is the sixth consecutive month in which 'full funding' has been achieved."  MORE >>

Milliman

Proposed Stock Buyback Tax Would Hit Retirement Accounts, Business Groups Say

"The stock buyback plan, proposed as a compromise by Sen. Kyrsten Sinema (D-AZ), is facing blowback from the U.S. Chamber of Commerce. The group said the tax proposal, which envisions a 1% excise tax on corporate buybacks, would filter down and have a deleterious effect on average investors."  MORE >>

Washington Examiner

[Opinion]

Is the QPAM Exemption in Jeopardy?

"[Attorney Carol McClarnon] points out that, in the nearly four decades since the QPAM exemption framework was first established, the financial services world has become far more interconnected. 'In today's industry, you just have a lot more complexity, with larger conglomerates and highly sophisticated international entities that do business with U.S. retirement plans,' McClarnon says. 'The proposed framework, if it is not adjusted after the comment period, will make it very difficult for these types of entities to reliably and efficiently use the QPAM exemption.' "  MORE >>

planadviser

Employee Benefits Jobs

View job as 401(k) Plan Administrator
          for Abacus Retirement Solutions, LLC 401(k) Plan Administrator

Abacus Retirement Solutions, LLC

Albuquerque NM

View job as 401(k) Plan Administrator
          for Abacus Retirement Solutions, LLC

View job as Retirement Analyst / Senior Retirement Analyst
          for Montgomery County, MD Government Employee Retirement Plans Retirement Analyst / Senior Retirement Analyst

Montgomery County, MD Government Employee Retirement Plans

Rockville MD

Selected New Discussions

When Do Catch-Ups Occur?

"If a person defers the full 402(g) basic limit with full catch-up, when do the catch-ups occur? If deferrals were pro-rata during the year, do they occur with each payroll period? Or do the catch-ups only occur in months after the basic 402(g) limit has been reached?"

BenefitsLink Message Boards

Can a Participant's Governmental § 457(b) Account Be Taken for Restitution?

"Imagine this situation: A government employee makes elective salary-reduction contributions under a § 457(b) plan. The plan receives only salary-reduction contributions. Later, the employee is found to have stolen from his employer. In the criminal case’s plea agreement, the former employee agrees to pay restitution to his former employer, but later asserts that the § 457(b) plan cannot be used to pay any part of it. Does the exclusive-benefit rule apply here?"

BenefitsLink Message Boards

Testing with Voluntary Contributions

"We have a SHNE no PS. Client (with "help" from broker) decided to add voluntary contributions up to the 415 limit. Three owners, two are doing the max up to $62K between elective, SH and voluntary. To play it safe, ran both ADP and ACP tests, apparently plan passes both on the basis that the unused portion of the employee deferrals were moved over to pass ACP. Does this make any sense?"

BenefitsLink Message Boards

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

The SIMPLE Reasons to Upgrade to a 401(k) Plan

August 17, 2022 WEBCAST

TRA [The Retirement Advantage]

Today’s Retirement Income Solutions

August 18, 2022 WEBCAST

Broadridge fi360 Solutions

Retirement Plan Roundup, Session 1: Committee Best Practices / Missing Participants / Cybersecurity Compliance

September 14, 2022 WEBCAST

Thompson Hine LLP

Last Issue's Most Popular Items

Amendment Deadlines Extended for SECURE Act and 2020 Required Minimum Distribution Relief

Kilpatrick Townsend

IRS Guidance Extends Deadline for SECURE and CARES Act Amendments

Proskauer

Three Cheers for Three Years: IRS Extends Deadlines for SECURE and CARES Amendments

Eversheds Sutherland

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

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