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Retirement Plans Newsletter

May 26, 2023

4 New Job Opportunities 4 New Job Opportunities


[Guidance Overview]

Congress Weighs in on SECURE 2.0 Guidance/Technical Corrections

"The [letter to Treasury and IRS] provides clarification on four specific issues: [1] Section 102 (modification of credit for small employer pension plan startup costs) ... [2] Section 107 (increase in age for required beginning date for mandatory distributions) ... [3] Section 601 (SIMPLE and SEP Roth IRAs) ... [4] Section 603 (elective deferrals generally limited to regular contribution limit)."  MORE >>

October Three Consulting

[Guidance Overview]

IRS Issues SECURE 2 0 Guidance on Expanded Availability of Self Correction

"The new notice does not address SECURE 2.0's overpayment rules or special correction rules for automatic contribution arrangements.... The IRS confirmed that failures that occurred prior to the effective date of SECURE 2.0 are eligible for self-correction, and that the expansion of self-correction is available immediately ... The IRS confirmed that while self-correction is now broadly available, plan sponsors remain free to seek IRS approval through the Voluntary Correction Program (VCP) ... The notice clarified that self-correction will not be available in a number of specific situations[.]"  MORE >>

Kilpatrick Townsend

[Guidance Overview]

Exceptional Usefulness and Quality icon What Is the Right Option for a Spouse IRA Beneficiary?

"A spouse beneficiary who chooses the beneficiary IRA option can move the assets to their own IRA later. But once the assets are moved to the spouse beneficiary's own IRA, there is no turning back. Therefore, the beneficiary IRA option should be chosen when there is uncertainty about which option is best. The assets can then be moved to the spouse beneficiary's IRA when tax-beneficial."  MORE >>


House Bill Would Let 403(b) Plans Invest in Collective Trusts

"The [Retirement Fairness for Charities and Educational Institutions Act of 2023 (HR 3063)] would specifically amend relevant securities laws to permit 403(b) plans to invest in CITs if the plans are any of the following: [1] Subject to Title I of ERISA; [2] Governmental plans; [3] Sponsored by an employer that has agreed to serve as a fiduciary for selecting the plan's investments. The bill would make similar securities-law changes for 403(b) plan investments in unregistered insurance company separate accounts. However, the IRC's investment restrictions for 403(b) custodial accounts would remain in place."  MORE >>


OPM Provides Guide to Retirement Process for Federal Employees

"The retirement process is, on the surface, fairly straightforward. But all it takes is missing a few pages of documentation or forgetting to sign a document to throw the process off course. The newly released guide is only three pages long. But it includes some very important details about the retirement process and spells out the steps that employees must take along the way."  MORE >>

Government Executive

Annuity Demand: Objective Life Expectancy vs. Subjective Survival Pessimism

"[I]ndividuals with higher objective life expectancy are more likely to buy an annuity. Similarly, less pessimistic individuals are also more likely to buy an annuity. A one-year rise in objective life expectancy increases the probability of buying an annuity product by 0.18 percent, which is 7.7 times larger than a one-year decline in pessimism."  MORE >>

Pension Research Council, The Wharton School of The University of Pennsylvania


A Critique of 'Apples and Oranges': Analyzing K-12 403(b) Plans

"Recently, the NTSA (The National Tax-Deferred Savings Association, a division of The American Retirement Association) released another in a series of misleading papers arguing that there is nothing wrong with public K-12 403(b) markets.... [This author] annotated the paper and provide[s] proper context to expose what [he believes] are the lies at the heart of Apples and Oranges."  MORE >>

The Teacher's Advocate

Employee Benefits Jobs

View job as Retirement Plan Manager
            for American Trust Retirement

Retirement Plan Manager

American Trust Retirement


View job as Retirement Plan Manager for American Trust Retirement

View job as DC Plan Administrator
            for Pension Administrators, Inc.

DC Plan Administrator

Pension Administrators, Inc.

Remote / IL

View job as Health Plan Software Analyst
            for National Employee Benefits Administrators, Inc.

Health Plan Software Analyst

National Employee Benefits Administrators, Inc.

Remote / Hollywood FL / West Palm Beach FL / Atlanta GA / Hybrid

View job as Health Plan Software Analyst for National Employee Benefits Administrators, Inc.

View job as Retirement Plan Specialist
            for Definiti

Retirement Plan Specialist



View job as Retirement Plan Specialist for Definiti

Selected New Discussions

Paying Plan Fees with Plan Assets

"A portion of a Plan's assets were discovered as unclaimed funds and returned to the plan sponsor. This was done by a company that specializes in finding unclaimed funds, and this company is charging a fee (commission) for finding these assets. Can plan assets be used to pay this fee? Is this considered a settlor or a non settlor expense?"

BenefitsLink Message Boards

Increased Catch-Up Limit for Ages 60-63 - Mandatory?

"Just curious if the change to 414(v) (based on Section 109 of SECURE Act 2.0) is mandatory. In other words, a plan sponsor may choose to permit age 50 catch-up contributions. If permitted, then *must* the plan permit the full increased catch-up limit for ages 60-63, or *may* the plan impose the same catch-up limit for all age 50 catch-up contributions regardless of age?"

BenefitsLink Message Boards

Puerto Rico Plan Termination

"[H]ow different [is this] from a regular plan termination specially when it comes to a [1] forced distribution for the unresponsive participants. [2] Any special notice that needs to be sent out to the participants? [3] Can Participants be rolled over to an IRA account? should that be Puerto Rico Individual Retirement Account only? [4] What are the option available for a participant that has loan? [5] How does 5500 and Non-discrimination testing work?"

BenefitsLink Message Boards

Participant Awarded Non-Spousal Pension by Lying About Being Married; He's Now Deceased and Wife Wants Her Spousal Benefits

"Multiemployer pension plan. Participant files an application for benefits. States he is not married and chooses a non-spousal, 60 sum certain form of payment. Lists son as his beneficiary. Participant received payments for about a year and dies. Just to complicate matters, participant never cashed his payments. Son began receiving the payments that participant was entitled to before his death, along with the remaining payments for over a year now (and continues to do so). The Fund has now learned that participant was married at his effective date and at his death. Spouse now wants her pension benefit. Not that we are obligated to follow it, but the probate court has awarded her spousal benefits. No idea if it is applicable, but our plan document does include a statement that if a participant, beneficiary, ect makes a false statement/furnishes fraudulent information relevant to a claim for benefits, then benefits not vested shall be denied, suspended, or discontinued. But the fact that we are dealing with vested benefits, I'm not sure we could have the participant's actions effect the wife's entitlement to benefits. Any suggestions on how to handle this situation?"

BenefitsLink Message Boards

Last Issue's Most Popular Items

Text of IRS Notice 2023-43: Guidance on Section 305 of the SECURE 2.0 Act of 2022 with Respect to Expansion of the Employee Plans Compliance Resolution System (PDF)

Internal Revenue Service [IRS]

Congress Says It Will Fix at Least Four Errors in SECURE 2.0


What ChatGPT Could Mean for Benefits Communications

Segal Benz

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

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