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Retirement Plans Newsletter

October 12, 2022

New Job Opportunity Today New Job Opportunity Today


[Guidance Overview]

Exceptional Usefulness and Quality icon IRS Waives the 50% Excise Tax for 2021 and 2022 RMDs for Some Beneficiaries

"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 >>

Appleby Retirement Dictionary

[Guidance Overview]

IRS Provides Relief for 2021 and 2022 Required Minimum Distributions for Beneficiaries and Plans

"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 >>

Groom Law Group

Analysis of DOL's Motion to Dismiss in Case Challenging 'Five-Part Test' of PTE 2020-02

"[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 >>

October Three Consulting

Cybersecurity Breach Suits Raise Questions About Liability for Benefits Plans

"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 >>

Hall Benefits Law

Providing Meaningful Access to, and Features in, Retirement Savings Plans to Address Savings Gaps and Boost Retirement Savings (PDF)

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 >>

Mintz, via NYU Review of Employee Benefits


Think Twice Before Agreeing to Contribute to a Multiemployer Pension Plan, Especially If Plan Is Not Fully Funded

"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 >>

Frost Brown Todd LLC


The Ideal 401(k) Plan for Employees and Employers

"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 >>

Employee Fiduciary

Benefits in General

[Guidance Overview]

IRS Provides Hurricane Ian Disaster Relief and Extension for CARES Amendments

"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 >>

Ferenczy Benefits Law Center

[Guidance Overview]

DOL Proposed Independent Contractor Rule May Have Implications for Individual Agents and Brokers

"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 >>

[Guidance Overview]

What's Old Is New Again: DOL Proposes a Sort-of-New Employee v. Independent Contractor Rule

"[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 >>

Warner Norcross & Judd LLP

Is It Time for ERISA to Be Amended to Cover Cyber Crimes? (PDF)

"[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 >>

Fox Rothschild LLP

Employee Benefits Jobs

View job as Non-Qualified Client Service Manager
            for Newport, an Ascensus Company

Non-Qualified Client Service Manager

Newport, an Ascensus Company


View job as Non-Qualified Client Service Manager for Newport, an Ascensus Company

Selected New Discussions

Form 5500-EZ Eligible? One of the Employees Is a 5% Owner

"Taking over a C-Corp with two employees: One owns 95% of the company, the other owns 5%. There is no relationship between the two. The previous TPA had been filing the Form 5500--EZ. Would this qualify for the 5500-EZ, however? Unless that type of ownership would classify them as a 'partner', I don't see it but I just wanted to confirm. Was planning to switch it to an 5500-SF, but wanted to confirm."

BenefitsLink Message Boards

Client Puts Electronic Signature on Copy of Form 5500

"Almost all of our clients hand-sign the 5500 with a signing authorization. One of our clients had made an electronic signature on the 5500 copy, which we will attach to the filing before I e-sign. There is still time to get a hand signature but not much time. Comments?"

BenefitsLink Message Boards

Mid-Year Conversion from Safe Harbor Match to Safe Harbor Non-Elective Contribution

"The question has come up whether a plan currently using a safe harbor match can mid-year amend the plan to provide for a 4% safe harbor non-elective contribution. The request is prompted by the sponsor considering adding a DB plan for the current year, realizing that the non-elective form of SH would be a better fit for a combo plan. Notices 2016-16 and 2020-86 don't seem to address this specific situation. I think it should be allowed. Any other thoughts?"

BenefitsLink Message Boards

Press Releases

Survey Reveals Employees Cutting Spending on Wellness & Necessary Healthcare Impacting 2023 Benefits Decisions


Dechert Expands its Transactional Capabilities with New York-Based ERISA Partner, John Schuch

Dechert LLP

Aon Pooled Employer Plan Reaches $1 Billion in U.S. Plan Assets and Commitments

Aon plc

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Four Rules All Plan Fiduciaries Must Follow

October 12, 2022 WEBCAST


Understanding the New DOL Independent Contractor and Gig Economy Guidance

October 18, 2022 WEBCAST


Pooled Employer 401(k) Plans: Why Plan Sponsors Need to Evaluate

October 25, 2022 WEBCAST

Western Pension & Benefits Council

Examining the Retirement System: Understanding Impacts and Influences on the Racial Wealth Gap

November 3, 2022 WEBCAST

Defined Contribution Institutional Investment Association [DCIIA]

2022 Retirement Summit

December 1, 2022 WEBCAST

EBRI [Employee Benefit Research Institute]

Last Issue's Most Popular Items

IRS Extends Helpful RMD Rule Transition Relief

Ice Miller LLP

IRS Issues Update on Certain RMD Rules for 2021 and 2022


DOL Announces Proposed Rule on Classifying Employees, Independent Contractors; Seeks to Return to Longstanding Interpretation

Wage and Hour Division [WHD], U.S. Department of Labor [DOL]

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

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