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Retirement Plans Newsletter

May 24, 2023

8 New Job Opportunities 8 New Job Opportunities

 

[Guidance Overview]

SECURE 2.0 Provides New Options for Retirement Plan Distributions

"This post summarizes the new distribution options, including penalty-free withdrawals, applicable to defined contribution plans ... and provides a timeline of their effective dates. The new options further evidence Congress's growing appetite for approving legislation that allows greater pre-retirement access to funds intended for retirement."  MORE >>

Verrill Dana LLP

[Guidance Overview]

New 401(k) Audit Rule for Form 5500 is Good News for Small Businesses

"Recent [DOL] changes to the Form 5500 will allow now allow plans to count fewer participants when determining the need for an audit.... The new participant counting method is effective for plan years beginning on or after January 1, 2023. It's important for small businesses to understand how the method will impact their plan's audit requirements."  MORE >>

Employee Fiduciary

[Guidance Overview]

IRS Issues Guidance on Nonfungible Tokens (NFTs) in IRAs and Tax-Qualified Individual Account Plans (PDF)

"Even if some NFTs would not be treated as collectibles by the IRS, not every IRA custodian or trustee will choose to offer them. When NFTs that are not collectibles are offered as an IRA or plan investment, IRA owners and plan participants should carefully review the terms of the IRA custodial or trust agreements to ensure they fully understand how these assets will be treated under the agreements."  MORE >>

The Wagner Law Group

[Guidance Overview]

What Plan Fiduciaries Should Know About SEC's Final Form PF Amendments

"Plan fiduciaries that utilize private equity funds, and regulated entities that serve these plan sponsors, should take note of [recent SEC changes to Form PF], as some have the potential to materially alter and increase reporting costs.... [T]he SEC's comments in the preamble reflect a concern for individual and real estate investors given a perceived lack of transparency and increased complexity in the private fund space when compared to other asset classes such as publicly traded equities."  MORE >>

Groom Law Group

[Guidance Overview]

CRS Report: Railroad Retirement Board -- Retirement, Survivor, Disability, Unemployment, and Sickness Benefits

17 pages. "This report explains the programs under [the Railroad Retirement Act (RRA) and the Railroad Unemployment Insurance Act (RUIA)], including how each program is financed, the eligibility rules, and the types of benefits available to railroad workers and family members. It also discusses how railroad retirement relates to the Social Security system. " [RS22350 updated May 23, 2023]  MORE >>

Congressional Research Service [CRS]

Participant Data Breach Hits Retirement Clearinghouse

"The clearinghouse alerted more than 10,000 people that private information, including IRA account data, may have been stolen.... The Retirement Clearinghouse's auto-portability network ... includes financial firms such as Empower, Fidelity Investments, TIAA and Vanguard and represents about 62 million workers and 139,000 employer-sponsored retirement plans."  MORE >>

PLANSPONSOR; free registration may be required

What Professional Fiduciaries Really Think Are 401(k) Plan Sponsors' Biggest Challenge

"Whether it was from the point of view of the professional fiduciary or the plan sponsor, ChatGPT said the biggest fiduciary challenge was picking investments. For real-life professional fiduciaries who have a much bigger picture of things, investment options represent merely one aspect of a broader challenge facing 401k plan sponsors. Even so, these retirement plan concerns pale in comparison to everyday operating priorities."  MORE >>

Fiduciary News; free registration required

Workplace Financial Wellness in America (PDF)

27 pages. "Employees are more than twice as likely to engage in virtual financial coaching than live financial coaching ... Virtual coaching ... should not be relied upon as a sole means to improving employee financial behavior. Employers should evaluate organizational obstacles that may limit employee utilization of live services and develop strategies that encourage engagement with human financial coaches."  MORE >>

Financial Finesse

U.S. Public Sector Pension Plans Are Set to Increase Spending on Stress Testing

"Despite reporting extremely high levels of efficacy with existing stress testing and scenario modeling -- 44% say they are very effective and 56% say they are quite effective at asset liability management (ALM) -- over the next two years 90% of the public sector pension professionals interviewed say the plans they work for will spend more on tools in this area."  MORE >>

Ortec Finance

Congress Tells Treasury SECURE 2.0 Corrections Are Coming

"On [May 23], Congress sent a letter to the Treasury Department informing Secretary Janet Yellen and [IRS] Commissioner Daniel Werfel that it will introduce legislation to fix several technical errors contained in SECURE 2.0."  MORE >>

American Retirement Association [ARA]

Employee Benefits Jobs

View job as Distribution Reviewer
            for Nova 401(k) Associates

Distribution Reviewer

Nova 401(k) Associates

Remote

View job as Distribution Reviewer for Nova 401(k) Associates

View job as Defined Contribution Account Manager with a Life!
            for Nova 401(k) Associates

Defined Contribution Account Manager with a Life!

Nova 401(k) Associates

Remote

View job as Defined Contribution Account Manager with a Life! for Nova 401(k) Associates

View job as Relationship Manager
            for Benefit Plans Plus, LLC

Relationship Manager

Benefit Plans Plus, LLC

Saint Louis MO / IL / Hybrid

View job as Relationship Manager for Benefit Plans Plus, LLC

View job as Actuarial Services Manager
            for FuturePlan, by Ascensus

Actuarial Services Manager

FuturePlan, by Ascensus

Remote

View job as Actuarial Services Manager for FuturePlan, by Ascensus

View job as Actuarial Consultant
            for Nyhart, part of FuturePlan by Ascensus

Actuarial Consultant

Nyhart, part of FuturePlan by Ascensus

Remote

View job as Actuarial Consultant for Nyhart, part of FuturePlan by Ascensus

View job as Director ESOP
            for FuturePlan, by Ascensus

Director ESOP

FuturePlan, by Ascensus

Remote / Chicago IL

View job as Director ESOP for FuturePlan, by Ascensus

View job as National Practice Leader - ESOP
            for FuturePlan, by Ascensus

National Practice Leader - ESOP

FuturePlan, by Ascensus

Remote

View job as National Practice Leader - ESOP for FuturePlan, by Ascensus

View job as Financial Sales Representative (401K Sales & Investment Education)
            for PAi Retirement Services

Financial Sales Representative (401K Sales & Investment Education)

PAi Retirement Services

Remote

View job as Financial Sales Representative (401K Sales & Investment Education) for PAi Retirement Services

Selected New Discussions

Long-Term Part-Time Employees

"The more I read these rules the more convinced I am that the only possible option is to avoid these rules altogether by designing eligibility rules to avoid excluding LTPT Employees. So for example the most simplified approach here will be to change the 1,000 hours in 12 months eligibility to 500 hours (at least for 401(k)). There are other options, but I am concluding that what is not an option is for a client to try and administer these LTPT rules in the context of a plan with 1,000 hours and 12 months 'normal' eligibility."

BenefitsLink Message Boards

Owner-Only DC Plan: Participant Deceased with No Designated Beneficiary

"DC Plan, only participant was owner, spouse pre-deceased, no children, no beneficiary designation. There is a will directing how the Estate is to be distributed. Do the plan assets get paid to the estate, and then distributed accordingly? Can any relatives (or even non-related beneficiaries) roll to IRA's? Any other tax advantaged methods of distribution available?"

BenefitsLink Message Boards

Rollover Receiving Plan Wants a Qualification Letter

"Several times recently, distributions have been requested where the receiving retirement plan or IRA has requested a 'qualification letter' from the sending plan. Sometimes the receiving plan is appeased with a copy of the IRS opinion letter, other times there is pushback. There is one right now where Fidelity is insisting the Opinion Letter is not what they want (the sending plan is not audit sized, so there is no audit statement, and while the assets are held with a custodian that does recordkeeping, not all plans pay extra for a certified trust statement either). What do they mean when they say they want a qualification letter? The receiving plan provider can't seem to articulate it, and it is holding up distributions. I don't think the sponsor (who is the named Plan Administrator) minds writing a letter saying they believe the plan to be qualified. They would be happy to. But is that what they want? At one point a receiving plan was saying the letter had to cover the qualification of the plan for this year (they didn't like the date on the opinion letter I guess, among other things). Anyone have a good resource or article or something that can help me understand?"

BenefitsLink Message Boards

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

SECURE 2.0: Rethinking the Match -- Student Loan Repayments

June 28, 2023 WEBINAR

Thompson Hine LLP

Last Issue's Most Popular Items

SECURE 2.0 Expands EPCRS to Correct Inadvertent IRA Errors

Morgan Lewis

Are Emergency Savings Account Deferrals Subject to Nondiscrimination Testing?

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

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

Definiti

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

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