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Retirement Plans Newsletter

May 23, 2023

2 New Job Opportunities 2 New Job Opportunities


[Guidance Overview]

SECURE 2.0 Expands EPCRS to Correct Inadvertent IRA Errors

"SECURE 2.0 notably expands EPCRS to allow IRA providers to address inadvertent failures with respect to IRAs. This is welcome news for IRA providers that, until now, have had few options for correcting inadvertent administrative errors (e.g., seeking a voluntary closing agreement with the IRS, or putting the onus on the IRA owners to apply for a private letter ruling or seek other relief)."  MORE >>

Morgan Lewis


ERISApedia -- Announcing SECURE 2.0 updates available NOW

All of our Technical Research eSources are fully updated for SECURE 2.0. Do you have a ReSource with the latest information? Contact us at: or 612-605-2266

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[Guidance Overview]

Are Emergency Savings Account Deferrals Subject to Nondiscrimination Testing?

"[E]mergency savings accounts are generally treated as designated Roth accounts ... [which] are subject to ADP testing, so it is entirely possible that emergency savings contributions could be subject to ADP testing as well, but we will need IRS clarification on that ... In the event they are subject to ADP testing, counting them as ADP deferrals could certainly help ADP testing results for some plans, since only non-highly-compensated employees can make emergency savings contributions."  MORE >>

Groom Law Group, via PLANSPONSOR; free registration may be required

[Guidance Overview]

SEC Issues New Guidance for Investment Advice Obligations

"Similar to earlier bulletins from the Staff, the [April 26 Staff Bulletin] is styled as a Q&A and focuses on compliance with firms’ and financial professionals’ care obligations when forming a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest."  MORE >>

The Wagner Law Group

[Guidance Overview]

Minnesota Governor Signs Secure Choice Auto-IRA into Law

"The law requires employers that employ five or more workers to participate in Secure Choice if they do not already offer a plan.... [Employees] can: [1] decide whether their contributions will be pre-tax or after-tax; [2] opt out of participation; [2] change their contribution rate; [3] direct the investment of their accounts into an array of investment funds offered through the State Board of Investment; and [5] after separation from service, leave their account with the state for distribution at a later date or elect a distribution in the form of a lump sum or other options to be determined by the board, including lifetime income options."  MORE >>

National Tax-Deferred Savings Association [NTSA]

DOL Drops Appeal in ASA Case

"The district court held that a recommendation to take a rollover from a retirement plan cannot be aggregated with post-rollover advice such that the rollover recommendation satisfies the 'regular basis' prong of the five-part test and vacated a DOL FAQ that concluded otherwise. By conceding this point, DOL has not only put itself in a difficult situation in other related litigation in Texas but has also likely signaled that it recognizes that any further attempts to materially expand the scope of entities and individuals held to a fiduciary standard will either require new legislation or a new regulatory initiative." [American Securities Association v. DOL, No. 22-0330 (M.D. Fla. Feb. 13, 2023; stipulation as to voluntary dismissal filed May 16, 2023; 11th Cir. No. 23-11266)]   MORE >>

Groom Law Group

Why 'Unbundled' Retirement Plan Administration Could Be the Right Choice for Plan Sponsors

"The bundled retirement plan administration model can be less expensive than unbundled, but customization is limited. This “one-stop shop” is for retirement plan sponsors willing to sacrifice plan design flexibility and complexity when working with just one provider."  MORE >>


Service Sector Employees Lead DC Plan Contributions

"In the $8.5 trillion defined contribution plan retirement market in the U.S., workers from service sectors such as finance and health care accounted for about two-thirds ($5.7 trillion) of assets under management, while those from goods sectors accounted for almost all of the remaining one-third ($2.8 trillion)[.]"  MORE >>


As States Add Retirement Programs, Private Providers See Growth

"This month, Minnesota and Missouri brought the count of state-facilitated retirement plans to 18. Small business providers say state engagement helps boost business despite state-provided auto-IRAs."  MORE >>


2023 Investment Company Fact Book: A Review of Trends and Activities in the Investment Company Industry (PDF)

156 pages. Chapters: [1] Worldwide Regulated Open-End Funds; [2] U.S.-Registered Investment Companies; [3] U.S. Mutual Funds; [4] U.S. Exchange-Traded Funds; [5] U.S. Closed-End Funds; [6] U.S. Fund Expenses; Fees; [7] Characteristics of U.S. Mutual Fund Owners; [8] U.S. Retirement; Education Savings. Appendices: [A] How U.S.-Registered Investment Companies Operate; [B] Significant Events in Fund History. Also available: Data tables.  MORE >>

Investment Company Institute [ICI]

Amazon Shareholders to Vote on 401(k) Climate Change Proposal

" shareholders will vote ... on a shareholder proposal ... about the company's retirement plan and how it may be impacted by climate change. The proposal, one of several on the topic filed by As You Sow at companies this proxy season, requests that Amazon's board 'publish a report… disclosing how the company is protecting plan beneficiaries with a longer investment time horizon from climate risk in the company's default retirement options.' "  MORE >>

Corporate Secretary


The Barrick Gold Excess Fee Argument in the Tenth Circuit: Can a Court Consider a 'Concrete Discount' at the Pleadings Stage?

"The Barrick Gold case is critical because it presents a chance for the Tenth Circuit to draw a line in the sand. Are plaintiffs allowed to manufacture a factual dispute to survive the pleading stage, or can defendants use [DOL] required fee disclosures or the actual recordkeeping contract to disprove the excess recordkeeping claims? This is one of the most pivotal questions in excess fee cases." [Matney v. Barrick Gold of N. Am., Inc., No. 20-275 (D. Utah Apr. 21, 2022; on appeal to 10th Cir. No. 22-4045, oral arg. May 17, 2023)]  MORE >>

Euclid Specialty Managers

Employee Benefits Jobs

View job as Corporate Intermediate Paralegal - Retirement Plan Recordkeeping & Administration
            for Transamerica

Corporate Intermediate Paralegal - Retirement Plan Recordkeeping & Administration



View job as Corporate Intermediate Paralegal - Retirement Plan Recordkeeping & Administration for Transamerica

View job as Retirement Plan Consultant/Administrator
            for Compensation Planning Inc.

Retirement Plan Consultant/Administrator

Compensation Planning Inc.

Remote / Warwick RI / Hybrid

View job as Retirement Plan Consultant/Administrator for Compensation Planning Inc.

Selected New Discussions

Convert QACA Match to Regular Safe Harbor Match Mid Year

"Plan has QACA Match, so changing to SH Match effective 7/1 would be an amendment that increases everyone's match for the whole year. Do we think this is possible? The primary objective is to eliminate the auto enrollment."

BenefitsLink Message Boards

Increased Catch-Up Limit for Ages 60-63

"The increased catch-up limit is the greater of $10,000 or 150% of the regular limit. The regular limit in 2023 is $7,500 and 150% of even that limit is $11,250. Yet I cannot find a single article that references this contradiction. I realize the $10,000 is indexed for inflation but so is the catch-up limit. The 150% is so far ahead I can't see the $10,000 (even indexed for inflation) will ever be relevant. The lack of commentary on this is so glaring I am starting to wonder if I'm the one missing something?"

BenefitsLink Message Boards

Can a Safe Harbor Non Elective Plan Still Be Exempt from Testing If They Contribute More Than 3%?

"Is there a cut off on how much can be contributed before it is not longer exempt from testing for safe harbor non-elective? I know for safe harbor match anything above 6% will then need to be tested for ADP ACP and Top Heavy so I was not sure if the same rules applied for Safe Harbor Non Elective."

BenefitsLink Message Boards

Press Releases

Fringe Benefit Group Announces The Contractors Plan ICHRA; Innovative New Program Solves Health Insurance Challenges for Service Contract Act Contractors

Fringe Benefit Group

Corporate Insight Announces Release of New Brokerage Experience Benchmarks, an Annual Study Ranking the Digital Experiences of Brokerage Firms

Corporate Insight

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Forecasting for ESOP Valuations in an Unpredictable Economy


Employee Benefits Law Group PC

Plan Design Features to Consider for 2024!

July 20, 2023 WEBINAR

Nova 401(k) Associates

Last Issue's Most Popular Items

DOL, Industry Fight Over ERISA Prohibited Transactions

Pensions & Investments

Text of Draft Instructions for IRS Form 5310: Application for Determination for Terminating Plan (PDF)

Internal Revenue Service [IRS]

SECURE 2.0: Starter 401(k) Plans and Safe Harbor 403(b) Plans

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

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