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Retirement Plans Newsletter

March 30, 2023

3 New Job Opportunities 3 New Job Opportunities


[Guidance Overview]

Wait What??? I Don't Have to Audit My Small Employer Retirement Plan Anymore??

"Among the [DOL's changes to the 2023 Form 5500 filing instructions] was a modification of the participant counting methodology for small/large plan determination from all eligible participants to only those participants with account balances at the beginning of the year.... This counting method will push many plans, especially 401(k) and 403(b) plans, below the 100 participant audit threshold[.]"  MORE >>



What’s really driving the increase in PRT’s?

Join our webinar on April 5th to hear what industry leaders think about the impact of inflation/interest rates, market volatility, the latest regulations, and PRT best practices.

Sponsored by PBI Research Services

[Guidance Overview]

SECURE 2.0: Changes Affecting Defined Benefit Pension Plans

"[1] Required minimum distributions ... [2] New rules on lump sum windows and pension risk transfers ... [3] New overpayment correction rules ... [4] Annual funding notices ... [5] Cash out of small benefits"  MORE >>


[Guidance Overview]

How Employers Can Leverage Retirement Law Changes

"[A]dding a [qualified student loan payment (QSLP)] matching contribution increases the administrative complexity of a plan.... [I]nclusion of a QSLP feature should act as an attraction and retention tool for employers looking to hire recent graduates, millennials and even older workers with remaining outstanding student loan debt.... Employers should proceed with caution as they consider amending their existing plan or starting a new plan that includes ... emergency savings accounts.... [E]mployee education can prove the difference-maker when it comes to perceived benefits to participants."  MORE >>

Hall Benefits Law

[Guidance Overview]

IRS Issues Guidance on Nonfungible Tokens in IRAs and Tax-Qualified Individual Account Plans

"[Notice 2023-27] explains that NFT ownership may provide the holder with a right with respect to an asset that is not a digital file, such as the right to attend a ticketed event, or may certify ownership of a physical item or some other particular item.... The IRS then indicates that pending issuance of guidance on the treatment of NFTs as collectibles, the IRS will apply a look-through analysis, under which the NFT's underlying right or asset will be tested for status as a collectible."  MORE >>

The Wagner Law Group

Court Finds Named Plaintiffs Inadequate to Represent Proposed Class on ERISA Excessive Fee Claims

"A recent decision from the Eastern District of Michigan serves as a reminder that -- while courts are often quick to certify classes in ERISA cases -- plaintiffs must satisfy the requirements of Rule 23 and that courts can (and do) refuse class certification where those requirements are not met." [Davis v. Magna International of America, Inc., No. 20-11060 (E.D. Mich. Mar. 27, 2023)]  MORE >>


Small Business Retirement Plan Coverage Predicted to Surge

"[M]ost respondents foresee 88% of employers offering a DC plan by year-end 2026.... [T]his level of coverage is already achieved in the 100+ employee market. But ... just 46% of employers with 1 to 99 employees offered an employee-funded retirement plan ... [S]tate mandates will be essential in increasing coverage."  MORE >>

American Retirement Association [ARA]

Competitive Pension Risk Transfer Buyout Rate Climbs During February

"During February, the estimated cost to transfer retiree pension risk to an insurer in a competitive bidding process increased from 99.3% of a plan's total liabilities to 99.7% of those liabilities.... During the same time period, the average annuity purchase cost across all insurers in our index also rose slightly, from 102.5% to 102.8%."  MORE >>


Rhode Island Police, Firefighters Make Opening Pitch in Battle to Restore Annual Pension COLAs.

"The push to reinstate annual pension boosts to Rhode Island's retired state and municipal workers, as well as public school teachers, began anew ... with a plea from lobbyists for two groups -- police and firefighters -- to get 2.5% compounded annual Cost of Living Adjustments, or COLAs."  MORE >>

Yahoo News

Employee Benefits Jobs

View job as Product Support Specialist - Compliance
            for / Wolters Kluwer

Product Support Specialist - Compliance / Wolters Kluwer


View job as Product Support Specialist - Compliance for / Wolters Kluwer

View job as Retirement Plan Specialist
            for Definiti

Retirement Plan Specialist



View job as Retirement Plan Specialist for Definiti

View job as Account Manager
            for U.S. Retirement & Benefits Partners

Account Manager

U.S. Retirement & Benefits Partners

El Paso TX / Hybrid

View job as Account Manager for U.S. Retirement & Benefits Partners

Selected New Discussions

Huge Increase in Plan Contribution Due to Investment Losses During Pandemic

"I have a client composed of husband and wife doctors and 4 employees. The assets in their defined benefit plan as of 1/1/22 were about $5,260,000. Due to investment losses, the 12/31/22 balance dropped to about $4,500,000. In 2021, there was a surplus in the plan of about $235,000. In order to bring the surplus down, no contribution was made into the plan for Plan Year 2021. Given that the plan is going to be terminated early in 2025, we were hoping that this would lower the surplus. Due to the large investment losses in 2022, not only did the surplus disappear, but, a minimum contribution of almost $100,000 was generated. At this point, the medical practice is not generating very much income and coming up with the $100,000 for the contribution is a problem.

'To avoid having a potentially large contribution in 2023, the plan is being frozen before anyone accrues a benefit for 2023. My question is, what are their alternatives for getting the money to make the required contribution of almost $100,000? Potential alternatives: [1] Have the doctors personally lend the money to the PA and then have the PA make the contribution. What are the tax consequences if the PA can't pay the loan to them back? Are there other tax concerns to be aware of? [2] Amend the plan to allow for in-service distributions. This would seem like there could be double taxation. Again, what other tax concerns could crop up? [3] What if the contribution is not made by 9/15? Aside from paying the 10% penalty, is there any advantage to this?"

BenefitsLink Message Boards

New Comp Basics

"In my limited understanding when doing new comp, my goal is to maximize the HCE's total contributions. The remaining gateway to eligible NHCE is the lesser of 5% of comp or 1/3 of the highest allocation percentage of an HCE. Upon 401(a)(b) failure, is it in my best interest to allocate more to the elder NHCE's? If so is there a general formula to achieve the correct amount? In my experience the 401(a)(b) seems really finicky and feels almost arbitrary at times."

BenefitsLink Message Boards

Press Releases

Aflac Adds Beneficiary Companion® Services to Its Group Premier Life Absence Disability Solutions Portfolio


T. Rowe Price to Acquire Retiree, Inc., Bolstering Retirement Income Capabilities

T. Rowe Price

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Is Your Retirement Plan Really 'SECURE'? Obligations and Opportunities for Employers Under SECURE 2.0


Spencer Fane

Case Studies in Retirement Income: The Plan Advisor’s Perspective

April 13, 2023 WEBINAR


Employee Benefit Plans Conference

April 24, 2023 in TN

Tennessee Society of CPAs

Employee Benefit Plans Conference


Tennessee Society of CPAs

IRA Issues: Top 10 Wrap-up (2023 Edition)

May 4, 2023 WEBINAR


IRA Beneficiary Distributions, Part 2

May 16, 2023 WEBINAR


Last Issue's Most Popular Items

Expanded Coverage for Part-Time Employees Under SECURE 2.0

Boutwell Fay LLP

Emergency Savings Accounts: What We Know So Far

Ice Miller LLP

SECURE 2.0 Provides Major Changes to EPCRS


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

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