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Retirement Plans Newsletter

October 3, 2023

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[Guidance Overview]

Recent IRS Snapshot Suggests Audit Interest in Timing of Employer Deductions of Retroactive Contributions to 401(k) Plans

"The rules are relatively complex and sometimes misapplied.... [T]he SECURE Act ... has added a new rule which allows an employer to retroactively adopt a new 401(k) plan -- and make tax-deductible contributions -- until the employer's tax-filing deadline (including extensions) for the taxable year of adoption.... The IRS snapshot includes five illustrative examples to help explain these principles."  MORE >>

Groom Law Group


Pensions on Peachtree IN PERSON April 15-16, 2024 – Save the Date!

Ferenczy Benefits Law Center presents the Pensions on Peachtree (POP) Conference on April 15-16 in Atlanta, GA. Earn 15 CE credits and attend the renowned BBQ hosted by Alison. Save the Date – Registration opens January 2024!

Sponsored by Ferenczy Benefits Law Center

[Guidance Overview]

How Are Small Plan Participant-Counting Rules Changing for 2024 Reporting?

"Instead of all individuals with account balances PLUS all eligible employees without account balances being counted, only individuals with account balances (as of the beginning of the plan year) will be counted. This will lower the participant count for many plans, particularly for 403(b) plans, where there are often a large number of employees who are eligible due to the Universal Availability rules, but do not have account balances."  MORE >>

PLANSPONSOR; free registration may be required

Recommended Practices for ERISA Retirement Plan Administrative Fiduciaries

"[1] Establish a plan administrative committee.... [2] Provide appropriate training.... [3] Keep plan documents up to date.... [4] Maintain a compliance calendar.... [5] Adopt written compliance practices and procedures."  MORE >>

Verrill Dana LLP, via JDSupra

How 401(k) Plan Sponsors Can Onboard New Hires to Encourage Retirement Savings

" Educating employees can take the form of live seminars, webinars and one-on-one sessions.... [One] good option is to outsource this education to third party financial partners. The objective of 401k employer support should be to eliminate any friction in the process for employees and enable them to regularly contribute to their retirement plans."  MORE >>

Fiduciary News; free registration required

The Vanguard Retirement Outlook: A National Perspective on Retirement Readiness (PDF)

31 pages. "Among late baby boomers, high-income workers are in good shape to meet their retirement spending needs. Low- and middle-income workers may struggle. [The] retirement outlook for Generation X and millennials is modestly better.... [This report will] highlight the potential to enhance retirement readiness by expanding access to the capital markets, reducing frictions that limit workers' ability to liquidate home equity, and accelerating adoption of smart defined contribution (DC) plan designs [and] discuss actions that workers can take to boost their retirement readiness."  MORE >>


Majority of Plan Sponsors with De-Risking Goals Looking to Completely Divest Their Company's Pension Liabilities in the Near Future

"A majority of plan sponsors, 94%, report that their company is weighing their DB plan's value against the cost of the benefit. Ninety-one percent of plan sponsors say the company's DB plan is receiving significant attention from corporate management.... [O]ver the past two years plan sponsors have also taken practical steps to ready their plan for derisking. These steps include improving their plan's data quality (58%), increasing plan contributions (56%), having their C-suite executives more involved in DB plan management (37%), and offering a lump sum distribution to terminated-vested participants (24%)."  MORE >>


FAS87 ASC715 Discount Rates and Moody's Rates, September 30, 2023

An unofficial monthly report of the Moody's Daily Long-term Corporate Bond Yield Averages and Moody's Daily Treasury Yield Averages (used as benchmarks by some corporate pension plans).  MORE >>

BenefitsLink Message Boards


Fiduciary Law Benchmarks That Really Matter

"The Tenth Circuit suggested that to be a meaningful comparator, plan participants must go beyond performance and factor in questionable collateral issues such as a fund's management strategies and goals.... [S]uch collateral issues are meaningless to plan participants and in 401(k) and 403(b) litigation.... Businesses around the world utilize cost/benefit analysis into their decision making process.... [P]lan sponsors should as well."  MORE >>

The Prudent Investment Adviser Rules

Benefits in General

Approaches, Considerations and the Steps to Launch an Education Financing Offering (PDF)

10 pages. " Depending on the commitment an employer is willing and able to make, and the needs of its employees, while balancing all benefit considerations, there are two primary approaches employers can use to address student loan debt, as well as a few expanded approaches an organization should consider."  MORE >>


Benefits for a Multigenerational Workforce: Meeting the Needs of Different Age Groups

"In today's dynamic work environment, one of the most complex challenges faced by employers is managing a multigenerational workforce.... One way to bridge this gap is through the strategic design of employee benefits packages that cater to an age diverse population.... Before you construct a new benefits strategy, it's essential to understand the key preferences of each generation."  MORE >>

Assured Partners

Employee Benefits Jobs

View job as Retirement Services Analyst
            for Sacramento County Employees' Retirement System

Retirement Services Analyst

Sacramento County Employees' Retirement System

Sacramento CA

View job as Retirement Services Analyst for Sacramento County Employees' Retirement System

Selected New Discussions

Conflicting Definition of HCEs

"Takeover situation, CB Plan doc refers to 'standard' definition for HCEs. 401(k) Plan refers to Top-Paid. Small combo (6-7 total, 2 owners, 1 highly paid non-owner). What does it mean? Which definition prevails? IMHO it boils down to if the highly paid non-owner individual does get the 7.5% Gateway or not?"

BenefitsLink Message Boards

Company Refusing to Make Safe Harbor Match

"Plan was setup as a Safe Harbor Match. Unknown if notices were handed out to the employees or not but the client was advised it needed to be done and were supplied. Now the Trustee refuses to make the actual Safe Harbor Match. There are employees that defer and the plan fails discrimination testing. First year filing, besides informing the client we will no longer handle their plan since they won't follow the rules are there any other options? Chances are since they never filed they will continue to operate this way and the chances of being discovered are probably fairly low. Do we just cut them loose and hope that it is discovered one day?"

BenefitsLink Message Boards

Press Releases

Guideline Launches New Starter Plan, Making 401(k)s Even More Accessible for Millions of People


Mineral Adds Select Health to Embed HR and Compliance Solutions in Employer-Sponsored Health Plans


Ceridian to Become Dayforce


Webcasts and Conferences
(Retirement Plans / Executive Compensation)

A New Golden Age for ESOPs?


Employee Benefits Law Group PC

Multiemployer Plan Funding Methods Explained

October 31, 2023 WEBINAR

American Society of Enrolled Actuaries [ASEA]

Another Look at Bias

November 15, 2023 WEBINAR

Conference of Consulting Actuaries

Last Issue's Most Popular Items

IRS Employee Plans News, September 29, 2023

Internal Revenue Service [IRS]

A 10-Year Checklist for Retirement Planning


SECURE 2 0 Provisions Affecting Defined Benefit Pension Plans

Kilpatrick Townsend

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

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