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Retirement Plans Newsletter

September 28, 2022

2 New Job Opportunities 2 New Job Opportunities


[Guidance Overview]

SECURE and CARES Amendments Deadline Postponed But Plans Should Still Review Year-End Needs

"While the IRS in Notice 2022-33 and Notice 2022-45 extended the deadline for retirement plans to adopt the amendments required by the SECURE Act and the CARES Act until December 31, 2025, there are still some amendments and other actions that may be required by the end of 2022.... [I]ndividually designed plans can choose to adopt amendments reflecting the SECURE Act and CARES Act changes despite the postponement ... There is value in keeping a plan up to date with operational changes."  MORE >>

Davis Wright Tremaine LLP


SPARK Forum - November 6-8, 2022 -- The Breakers, Palm Beach, FL

3 days packed with actionable insights for advisors, recordkeepers and plan providers. Explore latest trends, strategies and ideas to lead through disruption. Join the retirement event with the most senior audience and network with purpose. Register Now.

Sponsored by SPARK

[Guidance Overview]

Cybersecurity for Employee Benefit Plans

"Plan Sponsors should have documentation in place as to how their information can be accessed, who has and who should have access, and tools in place to protect that information.... [T]hey should have a process in place to continually monitor who has access to the data to ensure that only current employees have access to the information.... It is very important to secure all data that is sent/received from Third Party Administrators and plan participants. Secure portals or encrypted data are typical means of safely sending sensitive information."  MORE >>

Meaden & Moore

[Guidance Overview]

Exceptional Usefulness and Quality icon 2022 Means New Tables for RMDs: Provisions You Must Know

"[1] 2021 RMDs taken in 2022 are not affected ... [2] The new tables reduce RMDs for account owners ... [3] Spouse beneficiaries get reduced RMDs ... [4] Nonspouse beneficiaries get a mixed bag ... [5] Nonspouse beneficiaries benefit from a transition rule."  MORE >>

Appleby Retirement Dictionary

Why Your Retirement Plan Should Offer a Roth 401(k)

"If it's been a while since you considered the benefits of adding a Roth 401(k) feature ... or if you never evaluated adding a Roth, here are four reasons to give them another look. [1] Your retirement benefits package will be more competitive.... [2] There are no income limits with a Roth 401(k).... [3] Employees will appreciate two tax-friendly options.... [4] Younger employees may even be more interested in a Roth."  MORE >>


Employee Contributions to Public Pension Plans (PDF)

14 pages, Sep. 2022. "Reforms made in the wake of the 2008-09 market decline included higher employee contribution rates for many public pension plans. This issue brief examines employee contribution plan designs, policies and recent trends."  MORE >>

National Association of State Retirement Administrators [NASRA]

Brightscope/ICI Data Show Employer Commitment to 401(k) Plan Saving

"In 2019, 87 percent of large 401(k) plans, covering more than 90 percent of 401(k) participants, had employer contributions. Employer contributions represented 31 percent of total contributions going into large 401(k) plans in 2019.... [L]arge 401(k) plans offer participants, on average, 28 investment options.... In 2019, 86 percent of large 401(k) plans offered target date funds (10, on average)."  MORE >>

Investment Company Institute [ICI]

Union Officials Sue MBTA After Arbitrator Proposes Slashing Pensions of Those Who Retire Before Age 65

"The MBTA's largest union is challenging an independent arbitrator's decision that would reshape the rules of the authority's $1.66 billion retirement system, including slashing the pensions of those who retire before the age of 65.... As of the end of last year, the fund's unfunded liability hovered at more than $1.3 billion[.]"  MORE >>

The Boston Globe; subscription may be required

Upcoming Deadline icon October 17 is Deadline to Correct 2021 Excess IRA Contributions Without Penalty

"[T]he IRS has said that the applicable deadline for taxpayers who file a timely return is six months after the original due date for filing the tax return, even if no extension is filed. This year, October 15 is on a Saturday, so the deadline is Monday, October 17.... A 6% penalty applies to excess contributions.... It will apply every year that an excess contribution remains in the IRA. The only way to avoid the 6% penalty when an excess contribution occurs is to correct it by this deadline."  MORE >>

Slott Report

IRA Reminders for Year-End 2022

"[1] RMDs: if you are at least age 72 by year-end ... [2] RMDs. for some inherited IRAs ... [3] Qualified Charitable Distributions ... [4] SEPP/72(t) payments: avoiding the 10% early distribution penalty ... [5] Roth IRA conversions: taking advantage of tax-free growth."  MORE >>

Appleby Retirement Dictionary

How to Determine Most Tax-Friendly States for Retirees

"The perception of a state as having high or low taxes could make it more or less attractive for someone choosing where to relocate, and those perceptions are often skewed by the state's 'headline' tax rate (that is, the top tax rate imposed on the highest income tax bracket) ... [T]he top marginal rates don't usually tell the whole story -- at least not for retirees.... [M]any states (including those typically labeled as 'high-tax') feature a slew of different tax breaks that can significantly reduce the tax burden for retirees in those states."  MORE >>

Nerd's Eye View

Market Setbacks Don't Need to Set Back Retirement Plans (PDF)

"[C]urrent volatility in securities markets and lower expected returns in the midterm do not warrant a change in ... retirement saving strategies. Workers over 50 might consider increasing their saving rate, however. Plan sponsors can help participants navigate market volatility by increasing adoption of target date funds in their plan lineup and providing emergency savings vehicles."  MORE >>

T. Rowe Price

Social Security: What Would Happen If the Trust Funds Ran Out?

25 pages. "The trustees project that following depletion of the combined funds in 2035, Congress could restore balance by immediately reducing scheduled benefits by about 20%; the required reduction would grow gradually to 26% by 2096.... The sooner adjustment to Social Security policy is undertaken, the less abrupt the changes would need to be, because they could be spread over a longer period and would therefore affect a larger number of workers and beneficiaries. As well, enacting adjustment to Social Security policy sooner, rather than later, would give workers and beneficiaries more time to plan and adjust their work and savings behaviors." [RL33514 updated Sep. 28, 2022]  MORE >>

Congressional Research Service [CRS]

Benefits in General

[Official Guidance]

IRS Disaster Relief Notice AK-2022-04, for Alaska Victims of Severe Storm, Flooding, and Landslides

"Victims of Alaska severe storm, flooding and landslides occurring between September 15 and September 20, 2022, now have until February 15, 2023, to file various individual and business tax returns and make tax payments ... Individuals and households affected by severe storm, flooding and landslides that reside or have a business in the Regional Education Attendance Areas of Bering Strait, Kashunamiut, Lower Kuskokwim and Lower Yukon qualify for tax relief."  MORE >>

Internal Revenue Service [IRS]

K-12 Education Addendum: Results from the 2022 Benefits Strategy and Benchmarking Survey

"[T]he top total rewards aspects enhanced to meet recruitment and retention objectives include: [1] Base salary; [2] Medical benefits; [3] Wellbeing initiatives; [4] Leave policies; [5] Retirement options."  MORE >>


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 Senior Retirement Plan Administrator
            for Pension and Retirement Services

Senior Retirement Plan Administrator

Pension and Retirement Services

Remote / Chesterfield MO

View job as Senior Retirement Plan Administrator for Pension and Retirement Services

Selected New Discussions

Please Help Me Understand the PBGC Premium Alternative Method

"Anyone have a decent primer on this they could share? What needs to be in the election by the Plan Sponsor to opt into this method instead of the standard method? Is there a summary of the 24 month average rates? Is that a single rate or are they segmented, i.e., 3 separate 24 month rates? When you choose a specific look back month for the 24 month average does that same month have to be used for each of the next 4 years you are required to use the alternative method?"

BenefitsLink Message Boards

Terminating Plan Before End of Calendar Year Means Participant's Limit on Deferrals Is Reduced?

"A plan's termination date is 9/21/2022. An employee has contributed $27,000 (the 2022 maximum + catch up) in deferrals. Is such a maximum deferral amount allowed if the 401(k) plan only operates for a short plan year, i.e., January 1 through September 21, 2022?"

BenefitsLink Message Boards

Form 5500 Required if New Plan Has No Participants and No Assets Yet?

"If a 401(k) plan has no participants and no assets, is a Form 5500 required? The plan provides for employee deferrals only (no employer matching or other employer contributions) and no employees have enrolled in the plan to date. The plan has never held any assets. Is a Form 5500 required? TIA!"

BenefitsLink Message Boards

Press Releases

Pan-American Life Insurance Group Introduces Gap Supplemental Medical Expense Insurance

Pan American Life Insurance Group

Sue Diehl Honored with NTSA 2023 Richard Ford Volunteer Service Award

National Tax-Deferred Savings Association [NTSA]

Health-E Commerce Debunks Flexible Spending Account (FSA) Myths in Preparation for December 31 Use-It-or-Lose-It Deadline

Health-E Commerce

OneAmerica, Intellicents Collaborate on Client Offering


Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Effective Participant Communication Matters


CAPTRUST Financial Advisors

Cash Balance Plans

November 1, 2022 WEBCAST

ASPPA [American Society of Pension Professionals & Actuaries]

Last Issue's Most Popular Items

IRS Addresses Third-Party Loans in Retirement Plans


As the Market Falls, New Retirees Need a Plan


Text of IRS Amendment to Final Regs: User Fees Relating to Enrolled Agents and Enrolled Retirement Plan Agents

Internal Revenue Service [IRS]

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

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