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Retirement Plans Newsletter

March 9, 2023

2 New Job Opportunities 2 New Job Opportunities


[Guidance Overview]

IRS Clarifies Required Minimum Distribution Reporting

"Under the relief provided in Notice 2023-23 ... the IRS said an RMD statement sent by a financial institution to an IRA owner turning 72 this year will not be considered to be improperly sent, provided the financial institution notifies the owner by April 28."  MORE >>

Journal of Accountancy


2023NAFE: The Premier Event for TPA Professionals

Join us in Nashville April 23-25 for the premier industry event for TPA professionals! With in-person & virtual participation options & 50+ breakouts across 4 tracks, you’ll find insights you need to move your business forward. Register today!

Sponsored by NIPA {National Institute of Pension Administrators]

[Guidance Overview]

IRS Provides Reporting Relief for IRAs Following SECURE 2.0 Change to Required Beginning Date

"Due to the change in the required beginning date, financial institutions should not: [1] Send the RMD statement required under IRS Notice 2002-27 to IRA owners who will attain age 72 in 2023. [2] Include a check in Box 11 or entries in Box 12a or 12b in the 2022 Form 5498 for IRA owners who will attain age 72 in 2023."  MORE >>

Thomson Reuters Practical Law

[Guidance Overview]

SECURE 2.0 Updates Family Attribution Rules for Aggregation of Businesses

"These rule changes are effective starting in 2024 and apply to ownership attribution for determination of both controlled groups under Internal Revenue Code Section 414(b) (which references IRC Section 1563) and affiliated service groups under IRC Section 414(m) (which references IRC Section 318)."  MORE >>

Boutwell Fay LLP

[Guidance Overview]

You Might Want to Write Down Why You Recommended That Rollover

"[T]he Division of Examinations of the [SEC] ... issued a Risk Alert ... calling attention to deficiencies found during broker-dealer compliance examinations ... Some of the exposed weaknesses and deficiencies regarding the Reg BI Care Obligation involved inadequate written policies that directed financial professionals to document the basis for their recommendations[.]"  MORE >>

Faegre Drinker

Fifth Circuit Weighs Certification of Giant Class of ERISA Plans

"A class action covering thousands of benefit plans serviced by Fringe Benefit Group appeared to be in jeopardy ... [after] a panel of Fifth Circuit judges peppered lawyers with questions about how the case could be resolved on a classwide basis. The case involves 290,000 participants across more than 3,000 plans that are governed by thousands of different 'arms-length negotiated agreements'[.]" [Chavez v. Plan Benefits Services, Inc., No. 17-659 (W.D. Tex. Mar. 29, 2022; on appeal to 5th Cir. No. 22-50368)]  MORE >>

Bloomberg Law


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401(k) audits are required, but they shouldn’t be so intrusive, take so long, or cost so much. PriceKubecka’s audit technology reduces the hours needed to produce a high-quality audit by 70%. That saves time – and money. Let’s schedule yours.

Sponsored by PriceKubecka

Tenth Circuit Affirms Reliance on 'Effective Vindication Exception' to Refuse to Enforce Arbitration Provision

"In a suit filed under [ERISA], the U.S. Court of Appeals for the Tenth Circuit recently affirmed a district court's reliance on the relatively obscure 'effective vindication exception,' first announced a decade ago by the U.S. Supreme Court, as the basis to refuse to enforce an arbitration provision in a defined contribution retirement plan." [Harrison v. Envision Mgmt. Holding, Inc. Bd. of Directors, No. 22-1098 (10th Cir. Feb. 9, 2023)]  MORE >>; free registration required

SECURE 2.0: Some Recordkeepers Are Hitting the Ground Running

"[T]he integration of emergency savings accounts and student loan data may provide recordkeepers with new opportunities to build acquisition funnels into participant platforms, leveraging emergency savings and student debt solutions to deepen relationships with participants and possibly promote appropriate retail offerings. In 2022 several recordkeepers introduced changes to the digital participant experience to better integrate emergency savings account services and provide well-rounded support for participants with student debt[.]"  MORE >>

Corporate Insight

Commit to Compliance: No ROBS Plan Is 'Plug and Play'

"Creating a ROBS plan is tricky, and a whole industry has developed to help business founders, avoid key compliance pitfalls ... For as long as the plan exists, compliance tasks remain permanently on the company's to-do list. In addition to holding ROBS stock, the plan is also subject to myriad rules as a tax-qualified retirement plan subject to ERISA and its many regulations. This is not an easy lift for a ROBS company, especially if it does not understand its role as a retirement plan sponsor."  MORE >>

KLB Benefits Law Group

Public Pension Funded Ratio Fell at End of 2022, Erasing Two Years of Investment Gains

"As of December 31, 2022, the aggregate funded ratio of the Milliman 100 PPFS plans dropped to an estimated 72.6% from a study high of 85.5% a year earlier.... Market performance drove this result, as the plans experienced estimated investment losses of 11.6% during calendar-year 2022. Current market return expectations now slightly exceed plan investment return assumptions for the first time since the PPFS began in 2012."  MORE >>


Executive Compensation and Nonqualified Plans

[Guidance Overview]

The DOJ's Newest Pilot Program on Compensation and Clawbacks: Executives and Employees Should Reap What They Sow

"Employers will not be able to take full advantage of the DOJ’s new program if their compensation systems do not permit clawbacks from wrongdoer employees. Companies should review their existing compensation systems and consider updating them before problems arise, so that they will be in a position to take full advantage of the DOJ program should it become necessary to do so."  MORE >>

Blank Rome LLP

Employee Benefits Jobs

View job as Recordkeeper & Customer Service Specialist
            for Heritage Pension Advisors, Inc.

Recordkeeper & Customer Service Specialist

Heritage Pension Advisors, Inc.

Remote / Commack NY / FL / Hybrid

View job as Recordkeeper & Customer Service Specialist for Heritage Pension Advisors, Inc.

View job as Account & Client Consultant - Retirement Plans
            for Ameritas

Account & Client Consultant - Retirement Plans



View job as Account & Client Consultant - Retirement Plans for Ameritas

Selected New Discussions

Late Deposit Safe Harbor Timing vs 5500 Audit

"I'm excited about the new process for determining if a plan is subject to an audit starting with the 2023 plan year -- it's now looking at participants with a balance -- yay! However, it leads me to wonder if the definition for large vs small plans will be extended to the DOL safe harbor regarding timing of employee contributions for small plans. I looked at the federal register and it doesn't specifically link to 5500 status, it only states '100 or more participants'. What are your thoughts on this? I'm thinking that unfortunately, we are going to have a larger difference of small vs large now between the SH rule and the 5500 filing than in the past [since 100 ppt filers did not have to file a large 5500 until they hit 120]."

BenefitsLink Message Boards

How to Handle Testing Refunds for Seller's Plan in a Stock Purchase

"Buyer is purchasing Seller in a stock transaction. Seller has agreed to terminate Seller's 401(k) Plan immediately before the closing. After closing, Seller will perform final testing and make any necessary refunds. Is it possible to refund through payroll so the participant's W-2 is accurate, or must it be handled by 1099? For example: Before closing, Employee defers $22,500 in Seller Plan. After testing, Employee receives a $6,000 refund. After closing, Employee defers $6,000 to Buyer Plan. Would Employee's W-2 show $28,500 in the 401(k) Box (since payroll provider is the same), and also receive a 1099 to show the $6,000 refund? Or can we just adjust the W-2 to show $22,500 in deferrals for the year?"

BenefitsLink Message Boards

Press Releases

TimelyMD Tops HealthCare Employer Rankings on Forbes List


New Slavic401k and IRALOGIX™ Partnership Delivers a Next-Generation IRA Solution to Accountholders with No Minimum Balance Requirement

Slavic 401k

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Boosting Employee Engagement in 401(k) Participation and Retirement Savings

March 9, 2023 PODCAST

Williams Mullen

SECURE 2.0: What Plan Sponsors Need to Know

March 21, 2023 WEBINAR


Getting It Right: Know Your Fiduciary Responsibilities, Part 1

March 21, 2023 WEBINAR

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

Getting It Right: Know Your Fiduciary Responsibilities, Part 2

March 23, 2023 WEBINAR

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

Getting It Right: Know Your Fiduciary Responsibilities, Part 3

March 29, 2023 WEBINAR

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

Last Issue's Most Popular Items

SECURE 2.0 Glitches and Unanswered Questions

Slott Report

Traditional and Roth IRA Changes Under SECURE 2.0

Groom Law Group

Nerding Out on SECURE 2.0: Long-Term Part-Time Employees, and 403(b) Plans

Ferenczy Benefits Law Center

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

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