"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 >>

"The qualification concern arises under the Treas. Reg section 1.401-14(b)(1) requirement that a 401(h) account only pay medical expenses of 'retired' employees, their spouses, or their dependents. [PLR 202305001] ruled that the plan would not lose its qualified status because the 401(a)(36)-eligible active participants are eligible to receive pension benefits and, therefore, meet the definition of 'retired employees' under the terms of the plan."  MORE >>

"[1] Employees can elect to treat employer contributions as Roth.... [2] Mandatory Roth treatment of catch-up contributions for individuals who earned $145,000 in the prior year.... [3] Elimination of pre-death required minimum distributions (RMDs) for Roth 401(k) accounts.... [4] Roth treatment for SEP IRA and SIMPLE IRA contributions."  MORE >>

"The SECURE 2.0 Act provides for distribution relief for various unforeseeable events that allow participants to access their retirement savings ... The SECURE 2.0 Act updated the Employee Plans Compliance Resolution System (EPCRS) to allow more types of failures to be corrected by the employer through self-correction without a submission to the IRS through the Voluntary Correction Program[.]"  MORE >>

"Excise taxes and penalties can negate years of accumulated growth in an IRA or account under an employer plan.... [In one case, the ] taxpayer owed the IRS about $8.5 million from years of accumulation of the 6% excise tax that applies to uncorrected excess IRA contributions. Helping clients avoid such excise taxes and penalties can be challenging, but SECURE 2.0 makes the job easier."  MORE >>

"The DOL's regulatory agenda indicates that in the near future, the DOL will be proposing a new fiduciary definition and proposing amendments to existing [PTEs] to align with the proposed regulation.... [The authors] anticipate that, at the least, it will include the DOL's expanded interpretation of fiduciary advice for rollovers (and might go beyond that). [They] also anticipate that many of the conditions in PTE 2020-02 will be included in the proposals for other exemptions[.]"  MORE >>

"[T]his case confirms that in the Tenth Circuit, mandatory arbitration of ERISA claims is allowed. However, mandatory arbitration cannot limit the remedies that are otherwise provided to litigants under ERISA. In other words, an arbiter must be allowed to fashion the same relief that would otherwise be available to a beneficiary in federal court." [Harrison v. Envision Mgmt. Holding, Inc. Bd. of Directors, No. 22-1098 (10th Cir. Feb. 9, 2023)]  MORE >>

"[T]he court concluded that FAQ 7 was not a reasonable interpretation of either the 1975 regulation or the 2020 PTE because it included, by way of example of ongoing advice, the provision of future advice on the performance of non-ERISA assets. Because such advice would not be tethered to a plan's investment decision, it could not form the basis of a determination that an advisor was acting as an ERISA fiduciary. The court rejected the Department's argument that this would lead to absurd results because the five-part test in the 1975 regulation applies to ERISA and non-ERISA plans alike, noting that 'an absurdity is not a mere oddity.' " [American Securities Association v. DOL, No. 22-0330 (M.D. Fla. Feb. 13, 2023)]  MORE >>

"Nearly 7 in 10 retirement-age plan participants ... have preserved their savings in a tax-deferred account. In total, 9 in 10 retirement dollars are preserved, either in an IRA or employer plan account. The 3 in 10 retirement-age participants who cashed out from their employer's retirement plan over five years typically hold smaller balances.... Most retirement-age defined contribution (DC) plan participants leave their employer's retirement plan within five years of separation from service, mostly for a rollover to an IRA."  MORE >>

"Firms hoping to encourage retirement planners to pursue annuity solutions -- rather than simply help them increase retirement savings -- via a retirement income calculator experience should ensure that users can visualize a precise reflection of their retirement income outlook using intuitive calculator inputs. Excellent retirement income calculators expand prospects' annuity awareness by channeling them to annuity-specific resources, illustrate how annuities can fill a retirement income gap and offer sophisticated recommendations powered by a robust information gathering process."  MORE >>

30 pages.  Employee Benefits items begin on page 4.  MORE >>