"[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 >>

"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 >>

"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 >>

"[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 >>

"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 >>

"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 >>

"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 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 >>

" 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 >>

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

"[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 >>