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Retirement Plans Newsletter

November 17, 2022

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[Official Guidance]

Text of IRS Notice 2022-60: Weighted Average Interest Rates, Yield Curves, and Segment Rates for November 2022 (PDF)

"This notice provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates ... and the 24-month average segment rates ... [as well as] the interest rate on 30-year Treasury securities ... as in effect for plan years beginning before 2008 and the 30-year Treasury weighted average rate[.]"  MORE >>

Internal Revenue Service [IRS]

[Guidance Overview]

Exceptional Usefulness and Quality icon IRS Signals Employers Will Have Less Discretion Over Discretionary Match

"IRS recently noted in Q&As on the 403(b) preapproved plan program's second remedial amendment cycle....that 403(b) plan documents submitted for preapproval must include provisions on the computation period and allocation formula for a discretionary match. This likely means that, going forward, all employers using preapproved documents for their defined contribution (DC) plans -- 403(b) and qualified -- should expect to specify these terms in newly adopted documents."  MORE >>


[Guidance Overview]

IRS Compliance Pilot Gives Retirement Plan Sponsors Grace Period

"Plan sponsors also should consider performing periodic internal compliance reviews to confirm that all applicable requirements are being satisfied. ... Corrective actions will be significantly less expensive for a plan sponsor that self-identifies errors.... [P]lan sponsors may begin to see an increase in IRS auditing, thanks to the Inflation Reduction Act[.]"  MORE >>

Best Best & Krieger LLP, via Bloomberg Tax

[Guidance Overview]

What You Need to Know About the Colorado Secure Savings Program

"As an Employer, you must register your business as having a qualified retirement plan, as the program officially launches in 2023. Whether you opt into the Colorado Secure Savings plan or offer your own plan that qualifies, you need to notify the state by using your access code and registering on the Colorado Secure Savings website."  MORE >>


Language Messaging for Retirement Planning May Be More Dependable Than Imagery

"Communicating retirement concepts to plan participants through clear, jargon-free language may be more dependable and effective than using imagery ... Retirement plan participants may respond in more optimal ways and be prompted to act through customized messages tailored to specific generations[.]"  MORE >>

PLANSPONSOR; free registration may be required

Despite Continued Volatility, Retirement Fundamentals Remain Sound

"Although average account balances have decreased, the data suggests retirement savers continue to focus on the long-term: total 401(k) savings rates held strong, the number of IRAs on Fidelity's platform continued to increase, and the percentage of employees with 401(k) loans remained low for a sixth consecutive quarter."  MORE >>


Reduce Future Volatility: Lock in Funded Status Gains

"Integrating actuarial and investment management for your pension plan's governance enables you to optimize your funding levels and move forward with less volatile results.... Market conditions are incredibly favorable for any de-risking activity related to the recent increase in rates: Now may be the time to lock in some of these funded status gains, and at the same time hedge that liability exposure prospectively by reallocating the fixed income assets to a liability driven investment (LDI) portfolio."  MORE >>

USI Consulting Group

Pension Risk Transfer Market Expected to Close $27 Billion in Q3, Second Largest Quarter on Record (PDF)

"2022 will be the largest year ever for the US PRT market at an estimated $55 billion in total market volume. This is significantly larger than 2021's record of $38.1 billion and is mainly driven by the jumbo transactions that continue to come to market, the largest being IBM's $16 billion2 lift-out in Q3."  MORE >>

Legal & General

The Older Workers and Retirement Chartbook

"The Older Workers and Retirement Chartbook shows the risks to retirement security and disparities in retirement preparedness, and explores the links between labor market challenges facing older workers and retirement insecurity."  MORE >>

Economic Policy Institute

Roth IRA or In-Plan Conversion Deadline for 2022 Taxation

"IRS just announced the new tax brackets for 2023, and while the same seven tax rates in effect for the 2022 tax year still apply for 2023, there were quite sizeable changes in the width of the income ranges for the various brackets....[It] may be advantageous for your client to compare his 2022 tax bracket to his anticipated 2023 tax bracket when considering the timing for a Roth conversion."  MORE >>

Retirement Learning Center, LLC


SEC Swing-Pricing Proposal Could Impact 401(k) Savers

"A proposal by the [SEC] to alter the way open-end funds operate could have a detrimental impact on retirement savers if implemented. [U]nder this requirement, an order to purchase or redeem a fund's shares would be executed at the current day's price only if the fund, its designated transfer agent, or a registered securities clearing agency receives the order BEFORE the pricing time as of which the fund calculates its net asset value (NAV). That would be a significant change from current practices that permit that receipt by a qualifying intermediary -- like a recordkeeper."  MORE >>

American Retirement Association [ARA]

Benefits in General

[Official Guidance]

IRS Disaster Relief Notice IL-2022-08, for Victims of Illinois Severe Storm and Flooding

"Victims of Illinois severe storm and flooding occurring between July 25 and 28, 2022, now have until February 15, 2023, to file various individual and business tax returns and make tax payments ... [I]ndividuals and households affected by the severe storm and flooding that reside or have a business in St. Clair county qualify for tax relief."  MORE >>

Internal Revenue Service [IRS]

Offer Benefits That Fit Life Stages of Workers to Attract and Retain Employees

"How do you know what benefits to offer? ... The benefits all generations want ... Health and family planning benefits by generation ... Financial planning benefits by generation ... Work-life flexibility and training benefits by generation."  MORE >>

Principal Financial Group

Employee Benefits Jobs

View job as  Senior Relationship Manager 2-4, ERISA, Retirement
            for National Benefit Services

Senior Relationship Manager 2-4, ERISA, Retirement

National Benefit Services


View job as  Senior Relationship Manager 2-4, ERISA, Retirement for National Benefit Services

Selected New Discussions

Late 5500-EZ Filer Wants to Ask for Waiver of Penalty Instead of DFVCP

"I have a one-person EZ that all the assets are in a brokerage account with an advisor. I explained that the VCP is the most straightforward way to do this, but they want to roll the dice. So my questions are: what is the downside? Isn't there a max $500 penalty either way?"

BenefitsLink Message Boards

New Plan -- What's the First Date for Counting Service for Participation and Vesting?

"I have a plan that has a start date of 1/1/2022 with an effective date for deferrals of 11/1/2022, with an eligibility requirement of 6 months. If someone has been at the company for a year but has an 'effective date' into the plan of 11/1/2022, does that mean they will have to work another 6 months before they are eligible to defer, or, because they have been at the company for a year, they are eligible on the effective date? I have the same question for vesting."

BenefitsLink Message Boards

Maximum Contribution by a Not-for-Profit Employer? No 25%-of-Payroll Deduction Limit

"Is there a maximum percent of eligible pay that a not-for-profit employer-sponsor has to stay below? In the for-profit world, they have to stay below 25% to keep the contribution deductible, but there's no deduction issue for a non-profit. Whether or not a not-for-profit should be spending 30% of payroll on a plan contribution is another question altogether, but if they had the cash, is there anything stopping it?"

BenefitsLink Message Boards

2021 Form 5500 Required for Plan Adopted in August 2022 with 1/1/2021 Effective Date?

"Plan was created in August 2022 with a 1/1/21 effective date so they could do a PS contribution for '21. Was there supposed to be a 5500 filed? If so, how do you go about it? Plan wasn't in existence until August, well after the extensions were due. Is there a special 5500 rule for plan that are retroactively adopted?"

BenefitsLink Message Boards

Press Releases

Former Carpenters' Benefit Plan Administrator Sentenced to Six Months' Home Confinement, Three Years' Probation for Embezzling $140,000

U.S. Department of Justice [DOJ]

OneDigital Announces Acquisition of The Fiducia Benefits Group


Last Issue's Most Popular Items

Have We Reached the End of Amara?

Kantor & Kantor LLC

Employer Didn't Breach Fiduciary Duty When 401(k) Beneficiary Designation Was Deficient

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

401(k) Compliance Check: Tackling Beneficiary Designations

Foley & Lardner LLP

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

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