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Retirement Plans Newsletter

April 18, 2023

3 New Job Opportunities 3 New Job Opportunities


[Guidance Overview]

RMD Changes Effective in 2023 and 2024

"Generally effective in 2024, Roth accounts in qualified plans will no longer be subject to RMDs. This aligns the tax treatment of Roth accounts in qualified plans with the tax treatment of Roth IRAs.... Effective with tax year 2023, excise taxes levied on participants for failure to take timely RMDs have been reduced from 50% to 25%, and further reduced to 10% if the failure is corrected quickly after discovery of the problem."  MORE >>

Holland & Hart LLP

Shareholder Advocacy Group Pressures Plan Sponsors on Failure to Consider Climate Risk

"As You Sow, a nonprofit shareholder advocacy organization, is scouring [DOL] Form 5500 filings to identify and rate employer-based retirement plans it says perform poorly with its proprietary 'sustainability scorecard.' In a letter to one company that received a low environmental and social retirement plan score, As You Sow CEO Andrew Behar seemed to suggest there may be a breach of fiduciary duty in failing to address the issue."  MORE >>

American Retirement Association [ARA]

Fiduciary Liability Insurers Eyeing Potential Wave of New Retirement Plans Under SECURE 2.0

"Fiduciary liability insurers want to capitalize on what they're hoping will be a wave of new small employers venturing into the private-sector retirement market and needing new coverage under the SECURE 2.0 Act ... Product modifications underwriters are making now spell out the risks and pitfalls small employers may fall victim to as they implement plan design options under the new law."  MORE >>

Bloomberg Law

Compensation Clawbacks: The Impact on 401(k) Plans

"[This article] will identify operational problems with incentive compensation clawbacks, review the impact on salary deferrals that have been deducted from that compensation and deposited to the plan (including associated employer matching contributions), and provide solutions to prevent operational headaches before they happen."  MORE >>


IRS Details Determination Letters Sent in FY 2022

"[The annual Data Book] reports that in FY 2022 [IRS] issued a total of 1,235 determination letters concerning retirement plans.... 221 concerned traditional DB plans ... 491 concerned 401(k)s, 285 concerned employee stock ownership plans (ESOPs), and 95 concerned profit-sharing plans.  MORE >>

American Retirement Association [ARA]


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Public Pension Funding Index, April 2023

"While there was a significant amount of market activity during March, including another interest rate hike by the U.S. Federal Reserve and troubles in the banking sector, the overall impact was muted for the 100 largest U.S. public pension plans. Their estimated funded status increased modestly, from 73.6% as of February 28, 2023, to 74.5% as of March 31, 2023[.]"  MORE >>


Annuity Purchase Update, April 2023

"Average annuity purchase rates dipped this month with the average duration 7 annuity purchase rate at 4.53% and average duration 15 annuity purchase rate at 4.50%. Contrary to the historical lull in market activity ... the Pension Risk Transfer Market was very active in the first quarter of 2023."  MORE >>

October Three Consulting


Do State and Local Pension Plans Really Need to Be Fully Funded?

"While full funding is tidy in the sense that, if the pension were to shut down, assets would be available to pay full benefits, it involves a significant opportunity cost in terms of forgoing public investment in infrastructure and education."  MORE >>

Alicia Munnell, via MSN News


Common Trust Law and the ERISA Fiduciary

"The significance of ERISA's fiduciary standard of care is the addition of the phrase 'familiar with such matters' to the English common law definition. This has resulted in the development of a judicial ERISA 'prudent expert rule' that has helped safeguard the rights of plan participants (and their beneficiaries)."  MORE >>

Fiduciary News; free registration required


Common Sense and Fundamental Fairness: The Matney Case and the Future of 401(k)/403(b) Litigation

"Matney provides a perfect opportunity for SCOTUS to further create a uniform, consistent set of standards for 401(k)/403(b) litigation. The recognition of the 'apples and oranges' argument is a consistent and inexplicable refusal of some federal courts to ignore SCOTUS and ignore the Restatement's common sense fiduciary standards." [Matney v. Barrick Gold of N. Am., Inc., No. 20-275 (D. Utah Apr. 21, 2022; recon. denied Jun. 21, 2022; on appeal to 10th Cir. No. 22-4045)]  MORE >>

The Prudent Investment Adviser Rules

Benefits in General

[Official Guidance]

IRS Disaster Relief Notice IN-2023-02, for Victims of Severe Storms, Straight-Line Winds and Tornadoes in Indiana

"Victims of severe storms, straight-line winds and tornadoes in Indiana from March 31 to April 1, 2023, now have until July 31, 2023, to file various individual and business tax returns and make tax payments ... [I]ndividuals and households ... that reside or have a business in Allen, Benton, Clinton, Grant, Howard, Johnson, Lake, Monroe, Morgan, Owen, Sullivan, and White counties qualify for tax relief."  MORE >>

Internal Revenue Service [IRS]

Employee Benefits Jobs

View job as Strategic Relationship Coordinator, Brand Ambassador
            for Hall Benefits Law (HBL)

Strategic Relationship Coordinator, Brand Ambassador

Hall Benefits Law (HBL)

Atlanta GA / Hybrid

View job as Strategic Relationship Coordinator, Brand Ambassador for Hall Benefits Law (HBL)

View job as 401(k) Consultant
            for Creative Retirement Systems

401(k) Consultant

Creative Retirement Systems

Remote / Cincinnati OH

View job as 401(k) Consultant for Creative Retirement Systems

View job as Compliance Analyst, Retirement Plans
            for The Standard

Compliance Analyst, Retirement Plans

The Standard


View job as Compliance Analyst, Retirement Plans for The Standard

Selected New Discussions

Ninety-Five Percent of Zero?

"CB plan expected to terminate with an asset sale pending. With PBGC timeline, probably early 2024 we get everyone (about 35-40 folks) paid out. IF there are any excess assets (and we're thinking at worst case, 50-100K), was thinking about a QRP transfer to their profit sharing plan. [1] Gotta cover 95% of active employees. If everyone's terminating employment with the seller, then do I need to cover 95% of zero employees? There are 3 partners selling, so they could certainly still be potentially 'active' in their hollowed-out shell. Is that an appropriate interpretation? 95% of either just the 3 former owners, or 95% of just totally zero active participants? Anyway, the extra 50-100K would be allocated completely for the final 2023 profit sharing plan year, since although I only gotta worry about the DB shutting down, there will still be allocations due (it's a DB/DC combo) for the PS plan. Eliminates the need to come up with a higher PS amount for its short year. And could use it all up for 2023, since I wouldn't expect there to be six more years to release it from suspense."

BenefitsLink Message Boards

Press Releases

Talkiatry Joins Horizon Healthcare Services Inc as Preferred Psychiatry Provider


Webcasts and Conferences
(Retirement Plans / Executive Compensation)

What a Relief! 403(b) Plan Developments


Williams Mullen

Cybersecurity for Retirement Plans

May 24, 2023 WEBINAR


Last Issue's Most Popular Items

Third Phase of Form 5500 Changes Released


Code Section 457(f) Conundrum: How to Handle Past Year Mistakes (From Vesting) (PDF)

The Wagner Law Group, via LexisNexis Practical Guidance

SPARK Institute SECURE 2.0 Guidance Request (PDF)

The SPARK Institute

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

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