"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 >>

"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 >>

"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 >>

"[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 >>

"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 >>

"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 >>

"[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 >>

"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 >>

"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 >>

"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 >>