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Retirement Plans Newsletter

September 25, 2023

2 New Job Opportunities 2 New Job Opportunities


[Guidance Overview]

SECURE 2.0: IRS Issues New Guidance on RMDs

"[Notice 2023-54] provides ... [1] Relief for the change in the required beginning date (RBD) for RMDs under SECURE 2.0; [2] Guidance for certain RMDs for 2023; and [3] Extension of the applicability date of the final RMD regulations."  MORE >>

Trucker Huss

ESG Investing and Fiduciary Risks

"[This article analyzes ESG investing and proxy voting] issues in the specific context of a participant lawsuit against a sponsor/sponsor fiduciary ... [It begins] with a discussion of the two ERISA fiduciary duties typically implicated in ERISA fiduciary litigation, the duty of prudence and the duty of loyalty [and concludes] with a discussion of the fiduciary duty to diversify which is both a separate fiduciary duty and an element of the duty of prudence."  MORE >>

October Three Consulting

Political Clock Ticks as DOL Readies Next Version of Fiduciary Rule

"During the notice-and-comment period, DOL likely will receive hundreds, maybe thousands, of comment letters about the fiduciary proposal. Collecting and reviewing them likely will take months.... [In] an election year like next year. Congress will be in session even less than normal ... If a final rule is promulgated within 60 legislative days of the end of a congressional session, the next Congress can reach back and act against it within a fresh 60-day time frame after the new Congress is seated."  MORE >>

InvestmentNews; subscription may be required

IRS Clarifies Its Warning About ESOPs

"On August 9, the IRS issued a news release, IR-2023-144, warning taxpayers and advisors of 'numerous compliance issues' with ESOPs ... [T]he IRS issued the release to alert interested parties and the employee ownership community that they've identified what they've termed a 'questionable transaction' sold by a small number of promoters.... The release is only about those promoters who twist the law to a point where the transactions toe the line of abusiveness, which happens with nearly every other part of the tax code."  MORE >>

Jackson Lewis P.C.

Best Practices for Defined Contribution Plans

"Based on an extensive review of academic literature and a thorough empirical analysis [the author] recommend[s] that plan investment menus include passive index funds covering all key investment categories, a full suite of index-based target date funds as the auto-enroll default investment option, and a self-directed brokerage option. [The author] also recommend[s] that plan sponsors charge per-participant direct fees and avoid revenue-sharing arrangements with mutual funds, that they select funds that are not affiliated with the plan's recordkeeper, and when possible, that they use a third party to provide participant education."  MORE >>

Nicole M. Boyson, via SSRN

Does a Requirement to Offer Retirement Plans Help Low-Income Workers Save for Retirement? Early Evidence from the OregonSaves Program

"Results from difference-in-difference models ... indicate a 12 percent increase in Individual Retirement Account (IRA) ownership among Oregon workers after the program's roll-out. Notably, the study discerns significant gains for lower-income, single, and older workers, as well as workers of small-size firms who previously lacked retirement savings plan coverage. Findings also suggest additional savings resulting from the mandate."  MORE >>

Ngoc Dao, via SSRN

After the Start-Up: The Care and Feeding of a ROBS Plan

"Many ROBS plan documents do not require specified annual contributions; such plans often permit only discretionary profit sharing contributions and the qualified employee rollovers. For a year or two, this may satisfy the retirement plan rules. However, as soon as possible after the plan is established, your ROBS plan must begin to receive regular, ongoing contributions."  MORE >>

KLB Benefits Law Group


Actuaries Continue to Ignore the 'Valuation Date Creep' Elephant in the Social Security Financing Room

"The Valuation Date Creep is a problem that Social Security actuaries and the Social Security Trustees have known about since 1983 (if not before).... [It] has generated consistent actuarial losses for the past forty years and is the primary cause of the System's deteriorated funded status ... The Valuation Date Creep should be fixed (fine-tuned) so that actuarial losses from this source are not expected each year[.]"  MORE >>

Ken Steiner, FSA Retired

Employee Benefits Jobs

View job as ESOP Administrator
            for Blue Ridge ESOP Associates

ESOP Administrator

Blue Ridge ESOP Associates


View job as ESOP Administrator for Blue Ridge ESOP Associates

View job as Defined Contribution Account Manager
            for Nova 401(k) Associates

Defined Contribution Account Manager

Nova 401(k) Associates


View job as Defined Contribution Account Manager for Nova 401(k) Associates

Selected New Discussions

Timing of Deposits When Changing Recordkeepers

"Client deposits deferrals/loan payments on their payroll date. This means deferrals are funded in one day. Plan will migrate to Empower (formally Prudential) on 10/20. First payroll to be sent to Empower is 10/27. Issue: once the file is received, Empower will have a call with the client about the process to review and approve the file. This call will not take place until the file is received. Furthermore scheduling this call is first come first serve, so there is no idea when the first deposit can be funded. Client is concerned the deposit will be 3-10 days later than the normal deposit date. Client stated their auditors will flag the deposits as late. Question: Is there anything in the IRS/DOL guidance that grants a grace period for unusual circumstances? Our client is a former auditor and she feels the deposits will be deemed late."

BenefitsLink Message Boards

Transfer 401(k) Balance to Individual IRAs When Participant Can't Be Found

"I have a terminated 401(k) that I am trying to remove all of the participants monies from before the end of this year. Several of the participants can't be located and/or won't return the distribution paperwork to the plan sponsor. It's my impression that the plan sponsor can establish individual IRA's for each of these individual's so that their monies can be removed from the plan trust and we can terminate the trust before the end of this year. Question: does anyone know of a financial institution that would establish individual IRA's without the participants signature?"

BenefitsLink Message Boards

New Cash Balance Plan for Recently Sold Company

"I have a company that just went through an asset sale that included the former employees. As of 9/1 there is only the owner left as an employee and he has income coming into the employer for the next few years. Would there be an issue starting a new CB plan effective 10/1/2023 with a short plan year and only covering the owner?"

BenefitsLink Message Boards

Last Issue's Most Popular Items

How SECURE 2.0 Impacts 403(b) Plans

Bricker Graydon

Ninth Circuit: Changes to a Services Agreement Require Consideration of Indirect Compensation


The Student Loan Payment Matching Contribution Up Close

National Tax-Deferred Savings Association [NTSA]

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

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