"SECURE 2.0 permits the provider of the IRAs that receive the forced-out amounts to continuously reach out to recordkeepers to determine if the IRA owner has begun participating in a plan that is recordkept by a participating recordkeeper and, if so, to transfer the IRA amounts to the IRA owner's account in the new plan.... The provider can collect a reasonable fee from the force-out IRA for those services and the fee will not be considered a prohibited transaction."  MORE >>

"Ultimately, this change represents an inconvenience for big savers age 50+ who would prefer to make their salary deferrals on a pre-tax basis for planning purposes. Since Catch-up contributions represent only about 25% of the annual deferral opportunity, though, it likely won't have too big an impact on them. From a plan administration perspective, however, this adds a whole new element of oversight and anticipation of how your participants might make use of the plan so you're able to ensure that deferral contributions are taxed properly."  MORE >>

"[T]he IRS previously waived enforcement against taxpayers subject to the 10-year rule who missed 2021 and 2022 RMDs if the plan participant died in 2020 on or after the RBD. It also excused missed 2022 RMDs if the participant died in 2021 on or after the RBD. The latest guidance extends that relief by excusing 2023 missed RMDs if the participant died in 2020, 2021 or 2022 on or after the RBD."  MORE >>

"The Fund ... argued the credit had been factored into its total withdrawal liability amount because it applied the credit to Perfection Bakery's allocation of unfunded vested benefits. The court agreed with the Fund, ruling that the Multiemployer Pension Plan Amendments Act requires any withdrawal credit, including a partial withdrawal credit, to be applied as a potential adjustment and not as a reduction after adjustments are made. While this ruling aligns with [a] 2018 Ninth Circuit decision ... it fundamentally misinterprets the law and is contrary to the [PBGC's] own guidance.' [Perfection Bakeries Inc. v. Retail Wholesale & Dep't Store Int"l Union & Indus. Pension Fund, No. 22-0573 (N.D. Ala. Jul. 7, 2023)]  MORE >>

"Plaintiffs accused the defendants of conflicts of interest because the plan paid 'excessive annuity contract management fees directly to Ameritas, its affiliates and/or third parties[.]' " [Colston et al. vs. Ameritas Holding Co., No. 23-3137 (D. Nebr. complaint filed Jul. 28, 2023)]  MORE >>

"[The] lawsuit ... targets the way the plan assets were invested and the assets' investment in company funds and other concerns.... The plaintiff claimed 11 instances of breach of fiduciary duty [by] defendants[.]" [Andrew-Berry et al. v. George A. Weiss and GWA, LLC, No. (D. Conn. complaint filed Jul. 24, 2023)]  MORE >>

"Investment managers and defined contribution plan fiduciaries want to provide access to alternatives to plan participants. But disparate performance, lack of clarity on liquidity, and the threat of litigation remain obstacles."  MORE >>

"While BlackRock, Fidelity Investments and a handful of other asset management firms are racing to get their applications for a spot bitcoin exchange-traded fund approved, not every asset manager is buying into the crypto craze.... Dave Stinnett, [Vanguard's] head of strategic retirement consulting ... [said] that Vanguard believes putting a cryptocurrency fund option into a 401(k) lineup would be 'very premature.' "  MORE >>

"HR 5060 and S 2627 would 'amend [ERISA] to provide for greater spousal protection under defined contribution plans, and for other purposes' ... Supporters argue that since defined contribution retirement plans are often a couple's largest financial asset aside from their home, spousal consent is needed to prevent the 'devastating effect' if one spouse takes a withdrawal from their account without the other spouse's knowledge or consent, especially for those less familiar with the household's finances."  MORE >>

"Late Boomers have less retirement wealth than earlier cohorts, including surprisingly low 401(k) assets.... The main factor ... is that Late Boomers saw a weakening in the link between work and wealth due to the Great Recession. The Great Recession story is a bit of good news for younger cohorts, as some of the downward pressure on their wealth holdings should abate."  MORE >>

"Texas school district 403(b) plans ... are absurdly long (often 40+ vendors, each with dozens of investment choices) and stuffed with high-cost companies.... Texas personal finance writer Scott Burns describes it as: The Texas 403(b) Corral. And it's not Okay. He contrasts the raw deal 1.6 million teachers get compared to the low-cost investing offerings (0.1%) the 72,000 workers at ExxonMobil in the state get."  MORE >>