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Retirement Plans Newsletter

January 16, 2023

3 New Job Opportunities 3 New Job Opportunities


[Official Guidance]

Text of Instructions for 2022 IRS Form 8915-C: Qualified 2018 Disaster Retirement Plan Distributions and Repayments (PDF)

"What's New: The repayment period for a qualified 2018 disaster distribution ends 3 years and 1 day after the distribution was received. This is particularly important if your qualified 2018 disaster distribution was received in 2019. Repayments reported on 2022 Form 8915-C can be used to reduce the income reportable on your 2019, 2020, 2021, or 2022 tax return, as applicable; if you have already filed your tax return for the year in question, you will need to amend that return." [Also available: 2022 IRS Form 8915-C]  MORE >>

Internal Revenue Service [IRS]

[Guidance Overview]

What to Do If You Missed the July 2022 Restatement Deadline: It's Complicated

"If a plan fails to meet the pre-approved plan restatement deadline, the plan document will need to be reviewed to determine if the plan met the requirements of Section 401(a) of the Code (either from inception or since the last pre-approved restatement) as an individually designed plan. If the plan document did meet these requirements, it is still qualified and can regain its pre-approved status by simply restating using a pre-approved document that meets current requirements."  MORE >>

Boutwell Fay LLP

[Guidance Overview]

SECURE 2.0 Impacts Defined Benefit Plans, Too

"Interest credits for cash balance plan compliance.... New notice and disclosure requirements for lump sum windows.... Transfers of surplus assets to fund welfare benefits extended and funding conditions loosened.... Ending COLA adjustments to PBGC premiums.... Additional information for PBGC funding notice ... [C]ap on the future mortality improvements that must be considered for purposes of the minimum funding requirements."  MORE >>

Cohen & Buckmann, P.C.

[Guidance Overview]

Exceptional Usefulness and Quality icon SECURE 2.0 Provisions Impacting Employer-Sponsored Retirement Plans (PDF)

13 pages. "SECURE 2.0 contains more than 90 substantive changes to retirement plan law; the key provisions impacting employer-sponsored retirement plans are discussed [in this article].... SECURE 2.0 will have a significant impact on employer-sponsored retirement plan for years to come and, just like SECURE 1.0, will require guidance from the IRS and the DOL."  MORE >>

Trucker Huss

[Guidance Overview]

The New Year May Bring New Restrictions on DOL Prohibited Transaction Exemptions

"Among the proposed changes is to impose higher standards for independence for plan service providers involved in the prohibited transaction exemption request. This may make it difficult to identify appropriate independent service providers, especially in light of increasing consolidation in the financial services industry."  MORE >>

Morgan Lewis

Responding to a Cyberterrorist Attack

"Recently, a major software provider (Provider) to third party administrators joined this horrible club. The question [the authors] are receiving from TPAs is 'What should we do about this?' ... [1] Review your own TPA service agreement ... [2] Review the Provider's contract ... [3] Notify your insurance carrier ... [4] Prepare client communication ... [5] Prepare participant communication ... [6] Continuously update everyone."  MORE >>

Ferenczy Benefits Law Center

401(k) Audit RFP Considerations for Plan Sponsors

"Plan Sponsors will want to make sure they are sending their RFP to CPA firms who have a specialization in these types of audits. Questions the Plan Sponsor will want to include in their RFP about potential CPA firms ... [P]rovide potential CPA firms with enough details and information about your Plan ... [and] about your Plan's operations ... Key information to include in your RFP [so that] the CPA firms [can respond] in their proposal."  MORE >>

Bradley Bartells, CPA, via LinkedIn

Why Pension Fund Portfolios May Deliver Unpleasant Surprises

"[I]nstitutional investors across segments took nearly two times more uncompensated risks -- or risks that are not sufficiently rewarded by return -- than compensated risks.... While adding managers into the portfolio lineup can potentially reduce overall risk, ... risks that were ultimately reduced were often different from what was intended as managers frequently cancelled each other out."  MORE >>

National Conference on Public Employee Retirement Systems [NCPERS]

The Big Shift Towards Auto-Portability

"In October 2022, three major defined contribution recordkeepers representing approximately 43.8 million workers across more than 48,000 employer-sponsored retirement plans, came together to embrace auto-portability, forming an industry-led utility -- the Portability Services Network (PSN) -- to accelerate its adoption.... [SECURE 2.0] codifies auto-portability, which represents the first retirement savings legislation specifically aimed at reducing cashout leakage."  MORE >>

401(k) Specialist

U.S. Pension Briefing, December 2022

"Discount rates were up slightly for the month, but meaningfully up year-over-year. Equity markets were down again for the month and for the year (the S&P 500 had its worst year since 2008). While funded status most likely deteriorated in December, most plan sponsors will be in significantly better position at the end of 2022 than they were at the beginning of the year."  MORE >>


Reasons for Sponsors to Consider Settling Liabilities in 2023

"Increases in interest rates, the increasing cost of PBGC premiums, and the idiosyncrasies of IRS minimum funding/benefit restriction rules may, for many sponsors, make 2023 a good year for defined benefit plan liability settlement -- through the payment of lump sums or the purchase of annuities (AKA pension risk transfer). [This article reviews] the issues with respect to 2023 settlements sponsors will want to consider."  MORE >>

October Three Consulting

Employee Benefits Jobs

View job as DB/DC Plan Administrator
            for Benefit Associates, Inc.

DB/DC Plan Administrator

Benefit Associates, Inc.

Remote / Huntington Beach CA / NY

View job as Enrolled Actuary
            for Prime Pensions, Inc.

Enrolled Actuary

Prime Pensions, Inc.


View job as Enrolled Actuary for Prime Pensions, Inc.

View job as Retirement Plan Administrator
            for Retirement Solutions Specialists, LLC

Retirement Plan Administrator

Retirement Solutions Specialists, LLC

Remote / Jacksonville FL

View job as Retirement Plan Administrator for Retirement Solutions Specialists, LLC

Selected New Discussions

Participant Died After Taxable Distribution Processed But Before Check Is Cashed - Beneficiary Wants Rollover Instead

"A woman suffered a stroke a year or so ago. She needed cash ... In late December 2022 she took a $450,000 cash distribution -- $90,000 was W/H. A couple of days later, but still in 2022, she unexpectedly died. The money is no longer needed and the husband would rather it not be taxed. Normally she would have 60 days to roll it over if she came up with the withholding. Husband said he could afford the $90k, but the wife is deceased, so I don't think there is a way to do that. If it was in the plan, he could roll it to a spousal IRA, but I don't think that can happen without having the distribution reversed first. The check for the $360,000 has not been cashed. Husband has it in his possession. I doubt the plan can reverse it. Can the plan limit the damage by voiding the $360k check and making the distribution $90k -- 100% withheld? Any other options, or are they stuck?"

BenefitsLink Message Boards

How Do You Handle 401(k) Catch Up on the Payroll Side?

"We use Fidelity as our 401(K) Administrator that allows those age 50 or older to elect pre-tax/Roth and catch-up. The problem is that many of our employees are electing catch up when they will not be maxing out on their pre-tax/Roth IRS limit. We only match on pre-tax and Roth. This leaves us with the issue that what should be regular pre-tax or Roth is being captured as catch up in the payroll contribution side of things. We do not true up at year end or termination to ensure the match is correct so this is one issue. However, I believe this can be corrected with some rule built in to only deduct regular pre-tax and/or Roth until capped out and then catch up deductions would begin. But I am not having much luck selling this. Could anyone share how this is done in your system to avoid this type of issue?"

BenefitsLink Message Boards

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Language Matters: An Advisor’s Approach to Retirement Income

January 18, 2023 WEBINAR

Broadridge fi360 Solutions

The Door Is Open… Wider: ESG Investing for Retirement Plans

January 19, 2023 WEBINAR

Broadridge fi360 Solutions

Evaluating Stable Value Investments in a High Rate Environment

January 26, 2023 WEBINAR

Broadridge fi360 Solutions

2023 Pensions on Peachtree Conference

April 17, 2023 in GA

Ferenczy Benefits Law Center LLP

Last Issue's Most Popular Items

Correcting Retirement Plan Overpayments: Relief and Restrictions from SECURE 2.0

Fox Rothschild LLP

SECURE 2.0 Increases Age for Required Minimum Distributions


SECURE 2.0 Is Congress's Retirement Enhancement Encore


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

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