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Retirement Plans Newsletter

October 26, 2022

3 New Job Opportunities 3 New Job Opportunities


[Guidance Overview]

Key Rules for Using the SEPP/72(t) Strategy

"[1] 72(t) payments should not be made for someone who already qualifies for an exception to the penalty ... [2] 72(t) payments must be calculated using an IRS-approved formula ... [3] The payments must be the same each year ... [4] 72(t) payments must be taken at least annually ... [5] 72(t) payments must continue until the later of five years or age 59½ ... [6] No other distributions or additional payments allowed for 72(t) payments account."  MORE >>

Appleby Retirement Dictionary

[Guidance Overview]

IRS Provides Relief for 2021 and 2022 Post-Death Required Minimum Distributions Under 10-Year Rule

"Plan administrators should discuss this relief with recordkeepers and third-party administrators to confirm whether their plans need to take advantage of this relief or whether they have been administered in line with the proposed regulations.... [P]plan administrators should consider whether changes to summary plan descriptions or other participant communications may be desirable."  MORE >>

Morgan Lewis

DC Plan Litigation 2019-2022: Major Themes Sponsors Need to Know

"Of the 165 lawsuits in Callan’s study, 31% alleged the target date fund (TDF) suite underperformed various benchmarks.... Managed account services have become a new focus in DC litigation. While these types of lawsuits have yet to identify consistent claims, the potential expansion of litigation requires DC plan sponsors to carefully review the utilization and outcomes of managed account services."  MORE >>


Don't Let Money Get Stuck in the Upside Down: The Uncashed Check Dilemma

"[1] Establish a system for tracking distribution checks from issuance through cashing, with a follow-up alert when a check is not cashed within a reasonable time.... [2] Develop procedures for locating participants if distribution check correspondence comes back undeliverable.... [3] If a check is uncashed for a significant period, re-contact the participant and encourage him or her to cash the check.... [4] If the participant is 'missing,' take action to locate him/her under IRS and DOL guidance."  MORE >>

Ferenczy Benefits Law Center

Pooled 401(k) Plan Fees: A Case Study

"Supporters claim that pooled plans can charge lower fees for high-quality administration services and investments due to 'economies of scale.' In truth, a single-employer plan with flat (participant-based) administration fees often costs less. The reason is the asset-based fees charged by pooled plan providers."  MORE >>

Employee Fiduciary


Have you registered for the 2023BMC? Secure your spot for this premier event!

The 2023BMC is January 18-20 at the Sanctuary in Scottsdale offering TPA business owners methods to grow their business along with a unique opportunity to meet fellow TPA business owners to share challenges and develop solutions. Register today

Sponsored by NIPA {National Institute of Pension Administrators]

High Interest Rates Raise Model Plan's Funded Status

"During the third quarter of 2022, the funded status of the model pension plan examined in each issue of Prism rose by 4 percentage points, to 104 percent ... This increase in funded status is primarily attributable to a 10 percent decrease in liabilities, partially offset by a 7 percent decrease in assets."  MORE >>



Investment Analysis and Risk Management for Investment Fiduciaries

"One of the key inconsistencies between the court[s] is whether index mutual funds can be used in determining whether plan participants can use index mutual funds to determine whether a plan sponsor breached their fiduciary duties in selecting investment options for a plan, as well as in calculating the damages resulting from a breach.... SCOTUS needs to decide these issues as soon possible in order to ensure uniformity by the federal courts in interpreting and applying ERISA and to minimize the damages caused by these inconsistencies."  MORE >>

The Prudent Investment Fiduciary Rules


Is Cryptocurrency Too Risky for 401(k) Plans? The Controversy Continues

"The depressed state of the crypto market has not eliminated demand.... [T]he DOL has filed a motion to dismiss the ForUsAll lawsuit in papers which downplay the binding effect of its guidance.... If the Retirement Savings Modernization Act is passed or folded into pending pension reform legislation, it would undercut the DOL's negative position."  MORE >>

Cohen & Buckmann, P.C.

Benefits in General

[Guidance Overview]

2023 IRS Limits for Retirement, Social Security, and Health Benefits; 2023 PBGC Premiums

" In addition to updating administrative systems to reflect the 2023 limits, plan sponsors may wish to review the contribution patterns over the last few years of their participants who were or are contributing at the maximum IRS limits.... If a nonqualified savings plan feature exists, there could be a reduction in the necessary amount to finance in a Rabbi Trust or leave as an unfunded unsecured obligation of the plan sponsor."  MORE >>


[Guidance Overview]

2023 Quick Benefit Facts (PDF)

2-page chart shows retirement plan limits, and health and fringe benefit limits, for 2021-2023.  MORE >>


Executive Compensation and Nonqualified Plans

2023 IRS Qualified Plan Limits Affect NQDC Participants

"[If] you've already maxed out your qualified plan contributions for 2022, you will still probably do the same in 2023, so you will need NQDC plans to defer any salary and bonus increases you expect in 2023. Also, if you believe tax increases are on the way and will affect you, you may feel a growing need to defer income."  MORE >>

Employee Benefits Jobs

View job as Retirement Account Analyst
            for Alerus

Retirement Account Analyst


Remote / AZ / MI / MN / ND / NH

View job as Retirement Account Analyst for Alerus

View job as Retirement Analyst / Senior Retirement Analyst, Grade N23 / N26
            for Montgomery County, MD Government

Retirement Analyst / Senior Retirement Analyst, Grade N23 / N26

Montgomery County, MD Government

Rockville MD

View job as Defined Contribution Plan Administrator (Entry Level)
            for MGKS

Defined Contribution Plan Administrator (Entry Level)


Phoenix AZ

View job as Defined Contribution Plan Administrator (Entry Level) for MGKS

Selected New Discussions

PEP Participant Fees

"A recordkeeper is basing their fee to service a PEP based on the merits of each individual adopting employer. In other words, the fees for each adopting employer within a given PEP will be different and determined based on their respective total assets (the greater the assets, the lesser the fee). This will inevitably create a situation where the PEP participants will be paying different fees from one another. Could this create a prohibited transaction or otherwise violate ERISA?"

BenefitsLink Message Boards

Press Releases

American Retirement Association, ASPPA Announce 2023 Officers

American Retirement Association [ARA]

PBGC Industry Day for Upcoming Smaller Asset Manager Program Solicitation

PBGC [Pension Benefit Guaranty Corporation]

Young Honored with 2022 Edward E. Burrows Distinguished Achievement Award

American Society of Enrolled Actuaries [ASEA]

Ubiquity Retirement + SavingsĀ® Ranked #1 Small/Medium Size 401(k) Provider on Google Reviews, TrustPilot, and BBB

Ubiquity Retirement + Savings

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Introduction to 401(k) Plans for Plan Sponsors

December 1, 2022 WEBCAST

Nova 401(k) Associates

IRA Reporting Requirements

December 6, 2022 WEBCAST


Last Issue's Most Popular Items

IRS Chart: Cost-of-Living Adjustments for Retirement Items (PDF)

Internal Revenue Service [IRS]

Company Stock in Employee Benefit Plans May Reduce New Excise Tax on Buybacks

Groom Law Group

Text of Draft IRS Instructions for 2022 Form 8955-SSA: Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefit (PDF)

Internal Revenue Service [IRS]

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

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