"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 >>

"[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 >>

"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 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 >>

"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 >>

"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 >>

"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 >>

"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 >>

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 >>

"Amazon.com 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 >>

"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 >>