"The information on Form 5498 is submitted to the IRS by the trustee or issuer of your individual retirement arrangement (IRA) to report contributions, including any catch-up contributions, required minimum distributions (RMDs), and the fair market value (FMV) of the account."  MORE >>

"In addition to allowing for self-correction, the proposed amendments would clarify that certain transactions are eligible for correction under the VFCP, expand the scope of other transactions that are eligible for correction, and simplify certain administrative or procedural requirements for participation in and correction of prohibited transactions under the VFCP.... [T]he proposed amendments would allow for VFCP excise tax relief even if the applicant had received relief under the VFCP within the prior three years."  MORE >>

"[T]he self-correction contemplated by the VFCP update differs from the self-correction afforded under EPCRS, because it would still require a submission to the DOL -- albeit a streamlined one.... The DOL pointed out that the VFCP still does not include a correction for delinquent matching employer contributions, which are operational failures under the Internal Revenue Code (rather than fiduciary breaches under ERISA) for which correction is only available under EPCRS."  MORE >>

"The 2022 IRS Required Amendments (RA) List (Notice 2022-62) identifies no changes in statutory or regulatory requirements for individually designed retirement qualified and ... Section 403(b) retirement plans. This means most employers will not have a Dec. 31, 2024, deadline for required amendments."  MORE >>

"The Final Rule addresses how plan sponsors can respond to participant demand for ESG investment options by adding a new provision that says plan fiduciaries do not violate their duty of loyalty under ERISA solely because they take participants' preferences into account when constructing a menu of prudent investment options.... This new language may ease the decision-making process for plan sponsors where the participant population wants the opportunity to invest in alternative assets, whether that is private equity, hedge funds, impact investments, or cryptocurrency."  MORE >>

"The environmental, social and governance movement's noble intentions are running into stiff resistance with growing backlash while a [DOL] rule moves ahead that would allow limited ESG goals in investing.... The [SEC] missed its October deadline for finalizing [its] rule because it was inundated with comments and had to reopen the comment period because of a system glitch. The SEC is also reviewing the implications of the West Virginia v. Environmental Protection Agency case, which limited the reach of government agencies.... Meanwhile, ... states are getting into the fray by restricting investments of public pensions under their purview."  MORE >>

"A DB plan calendar provides key 2023 dates for plan years starting Jan. 1. A separate DC plan calendar supplies 2023 deadlines for plan years starting Jan. 1."  MORE >>

"In this post, [the authors] examine the implied interest rate assumptions built into [online quotes] as of November 25, 2022 and compare the quotes and the implied interest rates with the results ... as of July 25, 2022.... The key takeaway ... is that implied interest rates (rates of return) on SPIAs have increased significantly so far this year."  MORE >>

"There is a big problem at the heart of ESG -- there is no way you can measure how well the ESG scores measure anything. At least with credit scores, one can check default and delinquency rates. ESG scores don't really have an external result you can check against."  MORE >>

"The Seventh Circuit Court of Appeals will hear oral arguments on the remanded case from the Supreme Court on the morning of Tuesday, November 29. It is the long-awaited opportunity to learn how the Seventh Circuit will respond to the Hughes v. Northwestern January decision by the Supreme Court. The argument is more compelling now that the Seventh Circuit has issued the Oshkosh decision in which it rejected similar claims of excessive recordkeeping and investment fees in a plan with actively managed fees that were above the industry average." [Hughes v. Northwestern Univ., No. 19-1401 (S. Ct. Jan. 24, 2022; remanded to 7th Cir. Divane v. Northwestern Univ, No. 18-2569)]  MORE >>

"Regarding fiduciary duties as they relate to voting of proxies on securities held in employee benefit plan investment portfolios and exercising other shareholder rights, the final rule is substantially similar to the proposal, with some minor changes.... The proxy voting provisions may impact ERISA health and welfare plans that hold corporate stock. This includes: Health plans that hold corporate stocks directly. Stocks held by health plans that participate in certain ERISA-covered intermediary investment arrangements"  MORE >>