"SECURE Act language regarding the 10-year rule led many to believe that there are no annual RMD obligations under the 10-year rule, and the only requirement is that the inherited account must be fully distributed by the end of the tenth year....According to the proposed RMD regulations, qualifying beneficiaries who inherited retirement accounts in 2020 have RMD obligations for 2021 and every year after. And qualifying beneficiaries who inherited retirement accounts in 2021 have RMD obligations for 2022 and every year after." [Article includes 3 detailed case studies.]  MORE >>

"A defined contribution plan that failed to make a 'specified RMD' will not be treated as having failed to satisfy Code section 401(a)(9) merely because it did not make that distribution. Therefore, there is no qualification failure, and no need for plan sponsors to make VCP filings or otherwise provide participants with an explanation to assist with 'reasonable cause' relief from the 50% excise tax penalty via Form 5329."  MORE >>

"[The DOL] filed a 'cross-motion to dismiss for lack of jurisdiction or, in the alternative, for summary judgment, and opposition to plaintiffs' motion for summary judgment' in ... a lawsuit challenging DOL's reinterpretation [in PTE 2020-02] ... of its 'five-part test' for determining whether a person is an 'advice fiduciary' under ERISA. In this note, we briefly discuss DOL"s arguments in support of its motion[.] [Federation of Americans for Consumer Choice v. DOL, No. 22-243 (N.D. Texas motion to dismiss filed Sep. 2, 2022)]  MORE >>

"Seventh Circuit affirms DOL authority to investigate cybersecurity breaches ... Proposed class action targets benefits administration company ... Benefit plan consulting firm faces mega class action over security leak."  MORE >>

20 pages. "[In] order to preserve a voluntary, employer-provided model for retirement plans, it is necessary for employers to provide meaningful retirement savings plan access with robust features that will allow employees to accumulate reasonable retirement savings.... [T]he purpose of this article is to outline some of the ways that employers can provide their employees with such meaningful access[.]"  MORE >>

"Employers which withdraw from a [multiemployer pension plan (MPP)] should not expect that any withdrawal liability they are assessed will be reduced due to bailout funds the MPP receives.... Possible exposure to withdrawal liability may make it difficult or impossible to sell your business.... Withdrawing employers ... are effectively allocated some of the unfunded vested benefits of employees of bankrupt employers which withdrew but did not pay withdrawal liability."  MORE >>

"The ideal 401(k) plan helps employees and employers meet their respective goals at the lowest cost.... [T]he features of such plans are not widely understood by employers. A big reason why is the cacophony of plan services, investments, and fees offered by 401(k) providers today. This noise helps conflicted 401(k) providers sell overpriced services and investments that put profit ahead of client interests. Employers can avoid this trap by understanding the features of an ideal 401(k) plan."  MORE >>

"The IRS has extended to February 15, 2023, a variety of tax deadlines for taxpayers affected by the hurricanes.... Given the timing of the disaster, this extension is vital for Form 5500 filers. Very importantly, the due date of Form 5500 is specifically extended. This extension is not limited to businesses in the affected states. It also applies to 'Taxpayers who are unable on a timely basis to obtain information necessary for completing the forms from a bank, insurance company, or any other service provider because such service provider's operations are located in a covered disaster area."  MORE >>

"The new proposal would require that workers be considered a company's employees, who are entitled to more benefits and legal protections than contractors, when they are 'economically dependent' on the company ... The DOL said it will consider workers' opportunity for profit or loss, the permanency of their jobs, and the degree of control a company exercises over a worker, among other factors. The changes could leave employers responsible for complying with laws relating to FICA, health care, retirement plans and federal regulations that protect employees."  MORE >>

"[T]he proposed rule would codify an Administrator's Interpretation that was issued by the Obama Administration DOL in 2015 and that was rescinded by the Trump Administration DOL in 2017.... In addition to the WHD proposed rule, the IRS has its own set of rules.... Some states, like Michigan, have rules too.... The state of California enacted law AB 5 in 2019 that presumes an individual is an employee unless the hiring entity can prove three specific elements."  MORE >>

"[F]iduciaries and persons handling [plan] funds must be bonded to protect against fraud and dishonesty. This article will discuss this required ERISA bond and the interplay of other types of insurance coverage, and conclude with a recommendation that Congress amend ERISA to require insurance to address cyber crimes."  MORE >>