"[Section 202(b) of SECURE 2.0] instructs Treasury to amend its QLAC rules, which are obscurely found under Required Minimum Distribution applicable to DC plans which purchase annuities (Reg 1.401(a)(9)-6).... Where there is a QLAC in a plan, this means that a wide swath of professionals of all sorts may need to be involved in sorting through this issue in resolving a domestic relations matter."  MORE >>

"If [technical correction by legislation] is the preferred resolution, it likely needs to hitch a ride on another bipartisan bill moving through Congress this year.... [A]nother solution could be specific guidance on the issue from the IRS. What's not clear ... is whether the IRS actually has the regulatory authority to interpret the statutory language in a relief ruling to reflect what was intended, rather than what was drafted."  MORE >>

"SECURE 2.0 will [expand the self-correction program (SCP) by] [1] permitting SCP for any 'eligible inadvertent failure', which is one that occurs despite the existence of practices and procedures that are reasonably designed to promote and facilitate compliance with Tax Code requirements; [2] removing any specific deadline for self-correcting failures, no longer distinguishing between those that might be significant or insignificant; [3] expanding the ability to correct while under an IRS examination; and [4] providing greater opportunities to self-correct plan loan failures."  MORE >>

"The new final regulations do not require that a fiduciary change investment decisions -- or how a fiduciary makes its investment decisions. Look at ESG as simply one more potential financial factor to consider in assessing an investment.... The framework used by the DOL is anchored in fundamental fiduciary principles ... The new final regulations are issued in response to the current focus on ESG -- but are applicable to other, new investment practices and theories that may emerge."  MORE >>

"Most retirement plan distributions are subject to income tax and may be subject to an additional penalty if you take an early withdrawal.... Fortunately, there are several ways that the penalty tax (but not the regular income tax) can be avoided.... As the taxpayer in one new court case found, if you don't meet the requirements, you'll be forced to pay the penalty.' [Lucas v. Comm"r, No. 2808-20 (T.C. Memo 2023-9 Jan. 17, 2023)]  MORE >>

"[A]ll employees should know [these numbers, which] relate to compensation from work: paycheck withholding, the potential need for estimated taxes, and your retirement savings. [1] The Social Security wage base ... [2] Your income-tax bracket and withholding ... [3] Your contribution limit for qualified retirement plans."  MORE >>

"A common misconception among plan sponsors is that a Roth offering requires a completely different investment vehicle. The feature is simply an added contribution option ... When considering the addition of a Roth 401(k) option, it is important for plan sponsors to check with service providers to determine whether payroll may be set up properly to add a separate deduction for the participant."  MORE >>

"Sixty-nine percent of private industry workers had access to employer-provided retirement plans in March 2022. Fifty-two percent of private industry workers chose to participate in a retirement plan, for a take-up rate of 75 percent.... Among state and local government workers, 92 percent had access to a retirement plan and 82 percent chose to participate, for a take-up rate of 90 percent."  MORE >>

An unofficial monthly report of the Moody"s Daily Long-term Corporate Bond Yield Averages and Moody"s Daily Treasury Yield Averages (used as benchmarks by some corporate pension plans).  MORE >>