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Retirement Plans Newsletter

October 14, 2022

3 New Job Opportunities 3 New Job Opportunities

 

[Official Guidance]

Text of EBSA Announcement: Transcript of Public Hearing and Reopening of Comment Period for Proposed Amendment to PTE Procedures

"The public hearing transcript [has been] posted to EBSA's website ... The Department held the virtual public hearing on September 15, 2022, and eight organizations were represented at the hearing.... [T]he Department is hereby providing notice that ... the Rule's reopened comment period that began on September 22, 2022 will close on October 28, 2022."  MORE >>

Employee Benefits Security Administration [EBSA], U.S. Department of Labor [DOL]

[Guidance Overview]

IRS Announces 'RMD-elay' for New Rules

"[Notice 2022-53] provides that excise taxes and tax disqualification will not apply to failures by beneficiaries to take annual distributions under the RMD 10-Year Rule (defined below) for calendar years 2021 and 2022.... The Notice provides that the final RMD regulations will apply 'no earlier than the 2023 distribution calendar year.' Before this extension, the proposed regulations stated that the final regulations were to apply to RMDs for the 2022 calendar year."  MORE >>

Eversheds Sutherland

[Guidance Overview]

IRS Guidance Signals RMD Rules Are Here to Stay

"The relief granted by the Notice is welcome, but it highlights the complexity of RMDs. Plan administrators should take this Notice as a warning to pause and assess whether RMDs are being distributed correctly."  MORE >>

Graydon

[Guidance Overview]

CRS Report: Social Security -- Cost-of-Living Adjustments

13 pages. "According to parameters outlined in the Social Security Act, an 8.7% COLA is payable starting in January 2023.... Social Security COLAs are based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), updated monthly by the [DOL's] Bureau of Labor Statistics (BLS)." [94-803 updated Oct. 13, 2022]  MORE >>

Congressional Research Service [CRS]

Two More District Courts Reject ERISA Fee and Performance Claims as Insufficient

"These decisions from the Eastern District of New York and the Eastern District of Wisconsin are the latest victories for defendants at the motion to dismiss stage in this arena, and come on the heels of multiple similar decisions in the Sixth and Seventh Circuits[.]" [Gonzalez v. Northwell Health, Inc., No. 20-3256 (E.D.N.Y. Sept. 30, 2022); Evans v. Associated Banc-Corp, No. 21-060 (E.D. Wis. Sept. 30, 2022)]  MORE >>

Proskauer

Beneficiary Disclaimer: Is It All or Nothing?

"By executing a 'qualified disclaimer' of benefits, the disclaimant effectively relieves herself of any tax consequences of receiving (and potentially gifting) the property that would have otherwise applied.... [It] is possible for a beneficiary to disclaim less than an entire interest in property. The key to a valid partial disclaimer is the ability to identify a 'separate interest' in severable property."  MORE >>

Retirement Learning Center, LLC

Annuity Purchase Update, October 2022

"Pension Risk Transfer market activity exceeded expectations in the third quarter, with the total market estimate for 2022 jumping from $40B to $50B. Pension funding status dipped last month as high interest rates offset the impact of the worst stock market returns observed thus far in the year. Annuity Purchase costs ... dropped significantly this past month, the lowest ... observed year to date. Average annuity purchase rates have increased over 270 basis points in the last twelve months[.]"  MORE >>

October Three Consulting

CRS In Focus: Social Security -- Scheduled Versus Payable Benefits

"In 2021, Social Security operated an annual deficit -- the first since 1982. Since total cost exceeded total income in 2021, some trust fund assets were redeemed to pay fully scheduled benefits as specified under current law. The trustees project annual deficits to persist indefinitely ... In 2021, the program had total costs of $1,145 billion and total revenues of $1,088 billion. Thus, approximately $56 billion in asset reserves were redeemed, or about 5% of total costs." [IF12231 Oct. 14, 2022]  MORE >>

Congressional Research Service [CRS]

Divorce and Retirement Accounts: Avoiding Taxes and Penalties

"Here are tips for avoiding taxes and penalties when dividing 401(k) and IRA assets in a divorce."  MORE >>

Lord Abbott

[Opinion]

Comments Submitted to DOL on Proposed Amendment to QPAM Exemption

DOL has posted comments received on its Proposed Amendment to the QPAM Exemption. As of October 13, 31 comment letters have been posted, along with 12 requests to submit written testimony at a public hearing. Deadline for submission of comments was September 26, 2022.  MORE >>

Employee Benefits Security Administration [EBSA], U.S. Department of Labor [DOL]

Employee Benefits Jobs

View job as Compliance Quality Control
            for Pentegra

Compliance Quality Control

Pentegra

Remote

View job as Compliance Quality Control for Pentegra

View job as Technical Operations Manager - Financial Services
            for Nationwide Mutual Insurance

Technical Operations Manager - Financial Services

Nationwide Mutual Insurance

Remote

View job as Plan Document Specialist
            for Benetrends, Inc

Plan Document Specialist

Benetrends, Inc

Remote / Lansdale PA

View job as Plan Document Specialist for Benetrends, Inc

Selected New Discussions

Pension Money Has Been Paid Back Retroactively: 1099-R Issues

"When pension distributions are requested to be paid back retroactively due to policy change, etc. how are the pay backs treated at tax time? I didn't see any prior year adjustments on the 1099-R. How would previously paid taxes be adjusted? Would the 1099-R show a reduced gross income in box 1?"

BenefitsLink Message Boards

PBGC Payment Date Deadline is October 17 -- Is That the Date of Required Receipt?

"Quick question regarding the PBGC payment. I know it's due by 10/17/22 this year. [1] Does it have to be received by the PBGC by that date, or [2] Does it have to be postmarked that date Thanks! Have a few that waited till the last minute, so have to let them know if they have to overnight the check or just get it in the mail."

BenefitsLink Message Boards

Notice 2022-53 -- When Do the Unpaid 2021 and 2022 Distributions Get Paid?

"The notice says that the excise tax will not apply for distributions not taken in 2021 or 2022 under the 10 year rule. But I don't think they say when those distributions must be taken. That is, do they get pushed to 2023, or do you do the RMDs over the remaining 10 years, or what? Or did I miss something? The notice makes reference to the intent to publish final regs and I guess that's where the answers will lie. Seems weirdly incomplete though."

BenefitsLink Message Boards

Self Correction of Newly Discovered Issue Despite Prior Submission Under VCP for Other Issues?

"We submitted our plan to the IRS under VCP about 6 months ago and just found an issue completely unrelated to the VCP submission. I do not see any requirements that we can't still self correct the recently identified problem, but wanted to see if anybody had a different opinion. In my mind, because there isn't a specific exclusion, as long as the issue would otherwise qualify for self correction, I can."

BenefitsLink Message Boards

Press Releases

Blitman and King Hires ERISA Associate

Blitman & King

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

2022 Retirement Plan Regulatory Update

RECORDED

Multnomah Group

Managing Retirement Income in Volatile Markets

RECORDED

Savant Wealth Management

Last Issue's Most Popular Items

2023 Social Security Wage Base Increase, and Projected Increases in IRS Limits

Venable LLP

Social Security Announces 8.7 Percent Benefit Increase for 2023

U.S. Social Security Administration [SSA]

IRS Provides Relief for Some RMDs for 2021 and 2022

Ferenczy Benefits Law Center

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

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