logo logo

Retirement Plans Newsletter

August 29, 2022

3 New Job Opportunities 3 New Job Opportunities


[Guidance Overview]

You Can't Always Get What You Want: IRS Issues Notice 2022-33

"The most helpful delay applies to a CARES Act provision that requires changes to defined contribution plan language governing required minimum distributions.... [T]he December 31, 2025, amendment deadline applies to non-governmental qualified plans, 403(b) plans not maintained by a public school, and IRAs."  MORE >>

Jackson Lewis P.C.

[Guidance Overview]

California Passes Legislation to Expand Mandated Retirement Plans

"On August 26, 2022, Governor Newsom signed Senate Bill 1126, which expands the definition of eligible employer to include a person or entity ... that has at least one eligible employee and that satisfies the requirements to establish or participate in a payroll deposit retirement savings arrangement, and would additionally exclude from the definition of 'eligible employer' sole proprietorships, self-employed individuals, or other business entities that do not employ any individuals other than the owners of the business."  MORE >>

Jackson Lewis

DOL Cybersecurity Investigations: The Trap Door to Endless Document Requests?

"The Seventh Circuit is the first court ... to hold that non-fiduciaries fall within the scope of the DOL's investigatory authority under section 504(a).... The Seventh Circuit ... has provided targets of administrative subpoenas with a clear blueprint for demonstrating that the DOL's requests are unduly burdensome: they must articulate via affidavit or witness testimony precisely how responding will disrupt their normal business operations." [Walsh v. Alight Solutions LLC, No. 21-3290 (7th Cir. Aug. 12, 2022)]  MORE >>

Groom Law Group

How Long $500k Will Last in Retirement in Each State

"Although conventional wisdom suggests having a retirement nest egg of at least $1 million, that's a difficult number to achieve for many Americans. To paint a more realistic picture of retirement finances ... the study analyzed average spending data -- including groceries, housing, utilities, transportation and health care -- for people ages 65 and older."  MORE >>

GOBankingRates, via Yahoo News

Reasons to Stop Contributing to Your Employer's 401(k)

"Here are just a few reasons why you may want to pull the plug on 401(k) contributions -- and save your money elsewhere. [1] You don't get an employer match ... [2] You don't like your investment choices ... [3] You're tired of paying hefty administrative fees."  MORE >>

Motley Fool

Your 401(k) Is the Ideal Place to Invest Like Warren Buffett: Here's Why

"Buffett is a practitioner of buy-and-hold investing.... Two characteristics of your 401(k) encourage you to practice the buy-and-hold approach: withdrawal restrictions and access to quality, large-cap funds."  MORE >>

The Daily Nonpareil

Here's What a $2 Million Retirement Looks Like in America

"[The authors] spoke in depth with four retirees who saved enough to build comfortable retirements, with net worths ranging from roughly $2 million to $4 million.... The four live in different parts of the country and are at different phases of life -- with one just entering retirement at 61, while another is in his 80s. Among other things, they offer insight into some of the challenges that retirees -- even those with substantial savings -- face today."  MORE >>

The Wall Street Journal; subscription may be required

Caught in a Trap: RMDs from 401(k) Plans in the Year of Retirement

"If the 401(k)-to-IRA rollover takes place before the RBD, it would make sense that no RMD should be required before the rollover occurs. But, as is the case with many IRA and workplace plan rules, what makes sense isn't always the correct answer. The correct answer is that a RMD from the 401(k) must be taken first, and only what's left can be rolled over."  MORE >>

Slott Report


Fiduciary Risk Management and Liability-Driven 401(k) Plan Design

"[T]he CommonSpirit decision may have done plan participants and ERISA plaintiff’s attorney a favor by opening “Pandora’s Box” as to a common issue with some 401(k)/403(b) plans and plan advisers/providers, that question being Are plan sponsors and ERISA plaintiff’s attorneys overlooking a potentially significant breach of a plan sponsor’s fiduciary duties of loyalty and prudence?"  MORE >>

The Prudent Investment Fiduciary Rules


Dangerous Fiduciary Assumptions

"[1] Assuming that the worst-case deadline for depositing participant contributions IS the deadline for depositing participant contributions.... [2] Assuming that not being required to have an investment policy statement means you don't need to have an investment policy.... [3] Assuming that ERISA's required fiduciary bond covers your liability as an ERISA plan fiduciary.... [4] Assuming that hiring a fiduciary keeps you from being a fiduciary.... [5] Assuming you have to figure it all out on your own."  MORE >>

Data 'Points'

Executive Compensation and Nonqualified Plans

[Guidance Overview]

SEC Adopts Long-Anticipated Pay Versus Performance Disclosure Rules

"The adopted rules add a new tabular disclosure requirement to S-K Item 402(v) ... The method of calculating the amount of compensation 'actually paid' has been significantly changed from the original rule proposal, with several new and technical provisions ... [C]ompanies must also provide a 'clear description,' which may be presented graphically, narratively, or through a combination of both, that compares pay versus performance."  MORE >>

Wilmer Hale

[Guidance Overview]

SEC Finalizes Pay-for-Performance Rules

"These new pay-for-performance rules will require reporting companies to disclose in their proxy and information statements a new standardized figure for compensation 'actually paid' (that is, total compensation otherwise reported in the proxy with the adjustments to pension and equity award methodologies) to the principal executive officer and to the remaining named executive officers; tabular disclosure of certain performance measures, including absolute and relative total shareholder return and net income; and a description of the relationship between the performance measures and compensation. Disclosure will be required for the last five fiscal years, subject to a transition period."  MORE >>

Paul, Weiss, Rifkind, Wharton & Garrison LLP

Employee Benefits Jobs

View job as Retirement Plan Consultant/Relationship Manager
          for Associated Pension Consultants Retirement Plan Consultant/Relationship Manager

Associated Pension Consultants

Remote / Chico CA / Sacramento CA

View job as Retirement Plan Consultant/Relationship Manager
          for Associated Pension Consultants

View job as Retirement Plan Coordinator
          for Capital Group Retirement Plan Coordinator

Capital Group

San Antonio TX / Irvine CA / Carmel IN

View job as Retirement Plan Coordinator
          for Capital Group

View job as Retirement Plan Consultant II - ERISA
          for ADP Retirement Plan Consultant II - ERISA


Louisville KY / Salem NH / Florham Park NJ / El Paso TX

View job as Retirement Plan Consultant II - ERISA
          for ADP

Selected New Discussions

Plan Document Allows for Provisions, But No Service Provider Offers It

"If a plan doc allows for certain provisions (for example, voluntary after-tax contributions) but none of the service providers include that in their offering, what right do participants have to demand it?"

BenefitsLink Message Boards

Vesting Error by Plan Administrator -- They Want Money Returned

"I worked for a company that had their qualified retirement plan at Nationwide. When i retired i requested a rollover to Vanguard. Nationwide cut me a check for the full balance of the account and I completed the rollover. Six months later, they claim there was an error in calculating the vesting percentage and want that amount returned. They have agreed to accept either the dollar amount of the error or the current value of the amount of stock purchased with the error amount. Assuming I agree that there was an error, my questions are: [1] Has anyone seen this? [2] Is there a way to correct this which would not involve selling shares of my rollover IRA and creating a taxable event? [3] Can I pay this with funds outside of my IRA?"

BenefitsLink Message Boards

Participant Wants to Change Distribution Election

"A participant in a 401(k) plan elected a lump sum distribution upon termination of employment. However, he has changed his mind and now wants an annuity payout option offered by the plan. He has not cashed his distribution check. It seems that since the check was not cashed that these are still plan assets and he should be entitled to make another distribution election. However, I can also argue that once the election is made its final. Any thoughts."

BenefitsLink Message Boards

Fiscal Plan Year Deferral Limit

"Plan year is 7/1/2021 to 6/30/2022. Limitation year is plan year. What is the 401k deferral limit?"

BenefitsLink Message Boards

Press Releases

eHealth Is Now Offering ICHRA Products and Services for Employer Groups


Merit Financial Advisors Establishes Presence in Wisconsin with Strategic Partnership with Mersberger Financial Group

Merit Financial Advisors

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Exploring Changes to the QPAM Exemption

September 14, 2022 WEBCAST

Defined Contribution Institutional Investment Association [DCIIA]

All Together Again: RITA Fall Conference 2022

November 2, 2022 in DC

Retirement Industry Trust Association [RITA]

Last Issue's Most Popular Items

ERISA Litigation Roundup: Damned If You Do, Damned If You Don't

Faegre Drinker

Inflation Reduction Act Includes Retirement Plan and Prescription Drug Implications

Willis Towers Watson

CUNA's 401(k) Is Latest to Be Targeted with BlackRock TDF Suit

American Retirement Association [ARA]

Unsubscribe  |   Change Email Address

Search Past Issues   |   Privacy Policy

Submit an Article   |   Contact Us   |   Advertise Here

Copyright 2021, 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, 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 and are offered as a service to our readers. We are not involved in their production and are not responsible for their content.