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Retirement Plans Newsletter

February 27, 2023

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[Guidance Overview]

Text of DOL Fact Sheet: Changes for the 2023 Form 5500 and Form 5500-SF Annual Return/Reports

"The key revisions, which include changes related to provisions in the [SECURE Act], include:

  • A consolidated Form 5500 reporting option for certain groups of defined contribution retirement plans -- defined contribution group (DCG) reporting arrangements.
  • Improved reporting by multiple-employer plans (MEPs), including pooled employer plans (PEPs).
  • A change in the participant-counting methodology for determining eligibility for simplified reporting alternatives available to small plans.
  • A breakout of reporting of administrative expenses paid by the plan on a plan's financial statements.
  • Further improvements in financial and funding reporting by PBGC-covered defined benefit plans.
  • The addition of selected Internal Revenue Code compliance questions to improve tax oversight and compliance of tax-qualified retirement plans.
  • Technical and conforming changes as part of the annual rollover of forms and instructions."


Employee Benefits Security Administration [EBSA], U.S. Department of Labor [DOL]

[Guidance Overview]

Simply the Vest: IRS Streamlines Rules for Retirement Plan Forfeitures

"Employers with defined contribution plans that have a more restrictive timeline for using forfeitures may consider amending their plan documents to require forfeitures to be used no later than 12 months following the end of the plan year in which the forfeitures were incurred.... [W]hile the proposed regulations allow plans to use forfeitures to pay plan administrative expenses, nothing in the regulations would impact previous guidance from the [DOL] specifying that plan assets can only be used to pay reasonable expenses that are not settlor expenses[.]"  MORE >>

Eversheds Sutherland

[Guidance Overview]

Proposed Changes in IRA Distribution Rules for '10-Year Payout' Beneficiaries

"[M]any beneficiaries of IRAs and other retirement accounts who are subject to the '10-year payout' rule under the [SECURE Act] will have to comply with an additional requirement and take a taxable withdrawal distribution from the retirement account in each year during the 10-year payout period. This change will apply as early as 2023 to all individuals and qualifying trusts who are not permitted to use age and the IRS tables to stretch required minimum distributions over their entire life expectancies."  MORE >>

Frost Brown Todd LLC

District Court Dismisses 401(k) Participant Suit Against Microsoft Involving BlackRock TDF

"The court's decision on the key issue was relatively straightforward: A plaintiff cannot state an ERISA imprudence claim based simply on the comparison of the alleged underperformance a plan's fund relative to the performance of selected 'comparators.' " [Beldock v. Microsoft Corp., No. 22-1082 (W.D. Wash. Feb. 7, 2023)]  MORE >>

October Three Consulting

Florida District Court Invalidates Part of the DOL's Interpretation of Rollover Investment Advice

"In partially granting summary judgement to ASA and vacating the DOL interpretation that [individualized advice provided on a] 'regular basis' includes IRA rollovers, the court determined that the FAQ was an unreasonable interpretation of the current fiduciary definition because it improperly removes the inquiry as to whether a person is a fiduciary to an ERISA plan." [American Securities Association v. DOL, No. 22-0330 (M.D. Fla. Feb. 13, 2023)]  MORE >>

Haynes and Boone, LLP

OIG Report: PBGC Should Improve Its Special Financial Assistance Review Procedures (PDF)

36 pages. "After passage of ARP, PBGC quickly drafted SFA regulations, provided guidance for multiemployer plans, established an SFA application review process, and launched the SFA program.... However, the Corporation did not formally assess and document fraud risks, sufficiently define risk tolerances, establish review procedures for exceptions, formalize final review procedures, or design a control that would ensure timely review of SFA applications. As such, current procedures are not sufficient to ensure timely delivery of accurate SFA amounts to eligible plans." [Report No. EVAL-2023-08 Feb. 24, 2023]  MORE >>

Office of Inspector General, Pension Benefit Guaranty Corporation [PBGC]

Embattled DOL ESG Rule Receives Democratic Congressional Support

"[Freedom to Invest in a Sustainable Future Act (HR 1119)] would amend [ERISA] to permit the consideration of ESG factors in retirement plan investing. It would also amend ERISA to include the updated 'tiebreaker' rule: If a sponsor is deciding between multiple investment options, they could use 'collateral' ESG factors if competing options would otherwise serve equally 'the plan's economic interests.' "  MORE >>


Benefits in General

[Official Guidance]

Text of IRS Information Release: May 15 Tax Deadline Extended to Oct. 16 for Disaster Area Taxpayers in California, Alabama and Georgia

"Disaster-area taxpayers in most of California and parts of Alabama and Georgia now have until Oct. 16, 2023, to file various federal individual and business tax returns and make tax payments ... Previously, the deadline had been postponed to May 15 for these areas." [See updated Disaster Relief Notices for California (CA-2023-02), Alabama (AL-2023-01) and Georgia (GA-2023-01)]  MORE >>

Internal Revenue Service [IRS]

[Guidance Overview]

IRS Dramatically Expands Electronic Filing Mandate in 2024

"Generally, an organization filing 10 or more returns or statements (previously more than 250) in a calendar year will be required to file electronically in 2024. The regulations also require e-filing of certain returns and other documents not previously required to be e-filed.... Filers must aggregate almost all return types covered by the regulation to determine whether a filer meets the 10-return threshold."  MORE >>


Employee Benefits Jobs

View job as Retirement Plan Relationship Manager
            for ERISA Services, Inc.

Retirement Plan Relationship Manager

ERISA Services, Inc.


View job as Retirement Plan Relationship Manager for ERISA Services, Inc.

Selected New Discussions

Long Term Part-Time Employees/Participant Count

"I realize it won't be an issue right away - but does anyone know if the long term part-time employees contributing will need to be counted as participants w/balances for 5500/5500-SF purposes? I know they can be excluded from testing, but haven't been able to find information as far as the 5500 return counts. Thanks in advance!"

BenefitsLink Message Boards

RMD from Plan with Both Platform and Pooled Funds

"Plan has assets with one of the big 401k vendors as well as outside pooled managed funds. Owner participant (who was already receiving RMDs, born in 1939) passes away. Past RMDs have been calculated by the TPA on the entire balance and distributed from the pooled managed funds. Spouse is the beneficiary and plans to roll the decedent's balance out of the plan to an IRA. Vendor wants to process RMD prior to rollover. Anyone ever been able to convince the vendor that the beneficiary can roll 100% of the account that they hold and the RMD will be made from the outside plan assets? I would think that if the Trustee of the plan directed them to pay out 100% of the deceased participant's account to the beneficiary they would have to do that. It will probably end up that the vendor will take the RMD anyway for their portion and then the TPA will calculate and have the Trustee pay the balance of the RMD from the pooled funds but it would be nice if the beneficiary only had to deal with one total RMD payout."

BenefitsLink Message Boards

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Prospecting Using Form 5500

March 15, 2023 WEBINAR


Last Issue's Most Popular Items

Text of IRS Proposed Regs: Use of Forfeitures in Qualified Retirement Plans

Internal Revenue Service [IRS]

Finding Balance with Form 5500: DOL Announces Changes Starting in 2023


DOL Changes Participant Count Methodology for Plan Audit Threshold

Poyner Spruill LLP

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

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