"Excess deferrals can be prevented by both employees and employers.... How do excess deferrals occur? ... How do excess deferrals through a single employer impact plan qualification? ... Why are the correction methods for excess deferrals often confused? ... What are the tax implications to the individual? ... What are the tax reporting procedures for excess deferrals? ... What is the impact of excess deferrals on nondiscrimination testing?"  MORE >>

"In the absence of governing regulations and sparse case law, the scope of the Building and Construction Industry Exception remains murky. In many cases, the application of the exception will be the difference between significant liability and no liability."  MORE >>

"While much of the argument in DOL's motion is technical (e.g., challenging ForUsAll's standing to sue), DOL does say some interesting things in it, e.g., seeking to characterize the Crypto Release as a nonbinding restatement of settled interpretations." [ForUsAll v. DOL, No. 22-1551 (D.D.C. motion to dismiss filed Sep. 12, 2022)]  MORE >>

"The 7th U.S. Circuit Court of Appeals ruled on Aug. 1 that a sponsor doesn't have fiduciary liability in a stock-drop case if the sponsor hired an independent third party to manage the company-stock fund within a 401(k) plan.... The appeals court's ruling plus the Supreme Court's Dudenhoeffer decision build an even tougher defense against stock-drop lawsuits, improving the odds that a complaint will be dismissed[.]" [Burke v. The Boeing Company, No. 19-2203 (7th Cir. Aug. 1, 2022)]  MORE >>

"The renewed emphasis on financial wellness [has] provided a logical entry point for financial services companies that purport to assist with a variety of individual needs ... Employers need to be cognizant about the motives of providers ... [This article] will review the scope of financial wellness as an employee benefit, its utilization, its evolving capabilities, and the risks that these expanded services and tools could pose to employers and fiduciaries."  MORE >>

"A combination of rising interest rates leading to falling liabilities, plus increased needs for liquidity in portfolios means asset allocations are, in some cases, no longer serving their intended purpose on either side of the pond.... At the same time, and as a result of falling public markets, private markets exposures are now overweight their targets in many cases -- making the need to reconsider asset allocations even more acute for these corporate funds."  MORE >>

"[Pension plans have] many risks but they tend to fall under three distinct groups: governance risks, funded status risks, and legal and compliance risks. Plan sponsors ... can choose to minimize, eliminate, or fully take on the various risks ... What risks are most prevalent in 2022 and what are some ideas plan sponsors should be thinking about to optimize their risk management this year and going into 2023?"  MORE >>

"Roth IRAs allow you to grow your wealth tax-free. Health Savings Accounts are one of the few strategies to forego taxes altogether. Rental properties are a nearly recession-proof way of diversifying your retirement income."  MORE >>

An unofficial monthly report of the Moody"s Daily Long-term Corporate Bond Yield Averages and Moody"s Daily Treasury Yield Averages (used as benchmarks by some corporate pension plans).  MORE >>

"The financial services industry and 401(k)/403(b) plan advisers like to avoid the issues of fiduciary duties, transparency, and cost-inefficiency by avoiding comparisons of fund performance and only discussing returns in terms of nominal, or publicly stated, returns. Unfortunately, nominal returns are often misleading when fiduciary duties and potential fiduciary liability is involved."  MORE >>

"It's been the craze for several years now as the generational change in demographics highlights new marketing trends, but it has come under fire lately from several different directions. What is 'ESG' investing, really? The problem is no one knows. Or maybe everyone knows. And they all believe (very strongly, by the way) it's something different."  MORE >>

"Why should an employer implement a [deferred compensation (DC)] plan? ... What are the tax consequences of DC plans? ... How do payroll taxes apply to DC plans? ... What are the key considerations for employers when establishing a DC plan? ... How important is Section 409A compliance?"  MORE >>