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Retirement Plans Newsletter

October 31, 2022

3 New Job Opportunities 3 New Job Opportunities


[Guidance Overview]

What's the Difference Between IRC Sections 404 and 415 Compliance Testing?

"it's not 'game over' if you fail one of these compliance tests. Yes, it will create a bit of administration headache and could cause some penalties but in the end they will not disqualify your plan as long as they are taken care of in a timely manner."  MORE >>

Blue Ridge ESOP Associates

New York District Court Interpretation of ERISA's Advice Fiduciary Rule Is at Odds with DOL's

"The 2020 guidance [in PTE 2020-02] notes that the analysis under [ERISA's advice fiduciary language] and the 1975 regulations may take into account the nature of the relationship after assets have been rolled out of the plan and into an IRA.… [T]he Court finds that the better reading of the statute and regulations takes into account only advice given while the assets are, in fact, plan assets when deciding whether TIAA rendered 'investment advice' on a 'regular basis.' " [Carfora v. Teachers Insurance and Annuity Association of America, and TIAA-CREF Individual & Institutional Services, LLC, No. 21-8384 (S.D.N.Y. Sep. 27, 2022)]  MORE >>

October Three Consulting

Home Depot Court Finds for Defendants on Monitoring of Financial Engines Investment Advice Arrangement

"[This article discusses] plaintiffs' claim that plan fiduciaries failed to prudently monitor fees under the plan's advice arrangement with Financial Engines and (subsequently) Alight Financial Advisors. This is one of the few decisions we've had on the substance of this issue and includes some significant guidance for 401(k) plan sponsors that include in their plan an advice service for plan participants." [Pizarro v. The Home Depot Inc., No. 18-1566 (N.D. Ga. Sep. 30, 2022)]  MORE >>

October Three Consulting

Delaware Law Expands Access to Retirement Plans

"Delaware is joining a growing list of states that require employers to automatically enroll their workers in a state-sponsored retirement savings plan, unless the employer already provides retirement benefits. The state is taking steps to implement the new law ... Covered employees can begin to participate and make contributions on Jan. 1, 2025."  MORE >>

Society for Human Resource Management [SHRM]; membership may be required to view article

Variance in ESOP Benefit Levels

"When comparing ESOP benefit levels there is variance across all ESOP companies and even within the same ESOP company from year to year. This article is intended to highlight the key factors that contribute to benefit levels and provide reasoning for the variance."  MORE >>

Blue Ridge ESOP Associates


What If They Are Wrong? How Court Decisions Impact 401(k) and 403(b) Plan Sponsors' Fiduciary Risk Management Decisions

"When SCOTUS vacates a decision of a lower court, in effect telling them 'you made a mistake,' who pays for the lower court's mistake? [That includes not only] the party before SCOTUS, but other plans that may have relied on the lower court's 'mistake.' ... The same question applies to the plan provider who initially recommended the imprudent investments that the plan adviser ultimately chose for the plan.... The importance of the fiduciary disclaimer clause preventing recourse by the plan against the plan adviser's negligent or fraudulent actions cannot be overstated."  MORE >>

The Prudent Investment Fiduciary Rules


Public Pension Funds or Cryptocurrency, What's the Bigger Scam?

"The underlying causes of pension fund mismanagement are many, but lack of transparency is the almost always the root of the problem.... If pension plans and all their investments were fully transparent and open to public scrutiny, then fraud would be far more difficult to conceal. In contrast to public pensions ... the world's first cryptocurrency -- bitcoin -- operates on a fully transparent platform called a 'blockchain' that is proven to be resistant to fraud and hacking by design."  MORE >>

Forbes; subscription may be required

Benefits in General

What Are Your Employee Benefits Really Worth?

"Understanding what your benefits are worth could renew your commitment to your current job -- or make you realize it's time to seek out a better deal. If you're thinking of becoming self-employed, you can better understand how much more you'll need to earn to replace your current benefits.... Here are some of the most common benefits, along with typical employer contribution amounts[.]"  MORE >>


Employee Benefits Jobs

View job as Plan Consultant
            for Carpenter Morse Group Inc.

Plan Consultant

Carpenter Morse Group Inc.

Remote / Longwood FL

View job as Plan Consultant for Carpenter Morse Group Inc.

View job as Retirement Sales Consultant
            for The Ryding Company

Retirement Sales Consultant

The Ryding Company

Remote / Westlake Village CA / AZ / CO / FL / HI / NV / NY / PA / TX

View job as Retirement Sales Consultant for The Ryding Company

View job as Retirement Plan Administration
            for The Benefit Advantage

Retirement Plan Administration

The Benefit Advantage


View job as Retirement Plan Administration for The Benefit Advantage

Selected New Discussions

Stock Sale of Plan Participating in a MEP

"Looking for guidance on the following scenario. If a participating employer in a MEP completes a stock sale of one of their entities which is covered by the MEP 401k and the new owner is not eligible to participate in the MEP (and participants are not eligible for distribution due to the same-desk rule) is it correct that the new owner would still be responsible for plan documentation and participant communications?"

BenefitsLink Message Boards

414 & Non-Voting Partnership Interests

"Under 1563 and 414, brother-sister common control for corporations can be based on value or voting power. So five people owning all the voting stock of two corporations would create a brother-sister group regardless of the value of their shares relative to the overall value of either corporation. Under 1.414(c)-2(c)(2)(iii), effective control for a brother-sister group of partnerships is based solely on ownership of capital or profits interests. There is no separate reference to value or voting power, just ownership. Does this mean one individual could own the sole voting interests in two partnerships (but not sufficient economic ownership) yet not form a brother-sister group? This seems inconsistent. Or is there some implication that the ownership of capital/profits interests would be determined in part by reference to voting power? Or am I missing something altogether? Appreciate any insights."

BenefitsLink Message Boards

Late Contributions to 401(k) Plan

"Just curious, if a partner(s) accidentally forgot to make a 401(k) contribution to the plan for 2021 via their Schedule C or K-1 income, can they still make it for 2021 even though it's no longer deductible on the business tax return for the 2021 year?"

BenefitsLink Message Boards

Press Releases

PlanSource Announces 13 New Partners Joining Partner Marketplace in Q3


Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Annuity Purchases: Fiduciary Arrangements



Cybersecurity for Plan Sponsors and Participants


CAPTRUST Financial Advisors

Last Issue's Most Popular Items

Half of Americans Say They're Reducing or Stopping Retirement Savings Due to Inflation


District Court Orders Design Firm and CEO to Pay $540k to Employee Benefit Plan After DOL Investigation Finds Overpayment for Shares

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

409A: Everything You Need to Know for Your Business

Withum Smith+Brown, PC

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

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