"While the 402(g) limit is an individual limit, it can still affect a 401(k) plan's qualified status.... 401(k) plans that miss the April 15 deadline must distribute the excess deferral to the individual and report the non-Roth amount as taxable both in the year of deferral and in the year distributed. Failure to correct the violation at all could lead to significant IRS penalties, up to plan disqualification."  MORE >>

"A U.S. District Court in Denver ruled for [the plan participant] in March 2022, saying the arbitration agreement was unenforceable because it 'disallows a litigant from seeking plan-wide remedies.' The 10th U.S. Circuit Court of Appeals upheld the District Court decision, saying that the arbitration policy failed to protect the ERISA rights of ... participants." [Harrison v. Envision Mgmt. Holding, Inc. Bd. of Directors, No. 22-1098 (10th Cir. Feb. 9, 2023; Argent Trust Co. v. Harrison, No. 23-30, cert. denied Oct. 4, 2023)]  MORE >>

14 pages. "Gen Z is facing obstacles to save for a comfortable retirement.... Participants are delaying their retirement by two years on average -- Gen Z is still optimistic they will retire sooner than other generations.... For most participants, their ability to do their job is not affected by financial stress; younger generations are more impacted.... Gen Z is more likely to want personalized investment advice and needs help choosing investments for their 401(k).... Gen Z is tapping into several sources of advice, including family and friends and resources through their 401(k) plan."  MORE >>

"[Here are] three specific mistakes in the realm of investments that ... can result in considerable financial and legal consequences over time.... [1] Not documenting and benchmarking your plan's specific TDF (target-date fund) funds.... [2] Not updating (or not even creating) an IPS (investment policy statement).... [3] Not regularly reviewing the share classes offered to allow the availability of the lowest-cost options."  MORE >>

"The potentially wide reach of [the proposed rule] has drawn widespread criticism across the financial industry. The ERISA Industry Committee ... said the rule would apply to a 'vast swath of tools' that investors rely on daily, including those related to helping investors save for retirement.... 'It is so far out of bounds, it's more like a concept release than a rule proposal,' said Chris Iacovella, CEO of the American Securities Association ... 'There is nothing for the chairman to do other than throw it in the garbage.' "  MORE >>

"[1] DOL should provide helpful guidance on emergency savings accounts linked to individual account plans.... [2] Defined contribution plan fee disclosure changes should focus on clarity and flexibility.... [3] DOL should not add requirements to new paper statement mandates.... [4] Balanced lump sum offer disclosures should track with legal requirements."  MORE >>

15 pages. "Although [the responses in this letter] primarily focus on what guidance Council members have identified as necessary or helpful in their implementation of the changes in law, [this letter also highlights] particular concern with the RFI's indication that DOL may consider conditioning the continued use of its electronic disclosure safe harbors on a participant's 'access in fact.' "  MORE >>

"IRI emphasized that notices and disclosures required under ERISA can and should be presented clearly and concisely to ensure consumers read and understand. The association also said that disclosures that are duplicative, inconsistent, or spread out across multiple documents make it much harder for average consumers to comprehend the information."  MORE >>

"[The decision] ... provides much needed clarity to the ESG controversy. Maximizing risk-adjusted returns is an ERISA fiduciary's sole responsibility when it comes to making investment decisions. In pursuing that goal, a fiduciary can adopt a strategy that is 'pro-ESG, anti-ESG, or entirely unrelated to ESG.' But the decision must be solely in terms of maximizing risk-adjusted returns, not collateral benefits.... [S]ubstantial uncertainty still surrounds state and local plans where fiduciaries' ability to maximize risk-adjusted returns may be limited by local laws and pending bills with regard to ESG investing -- both pro and con." [Utah v. Walsh, No. 23-0016 (N.D. Tex. Sep. 21, 2023)]  MORE >>

"Nearly three-quarters of employees surveyed expressed a real desire for financial guidance ...  ... [E]mployers can implement programs such as financial coaching. They can and should include everything from information on financial literacy and counseling to planning assistance, savings programs, and debt mitigation strategies. One-on-one support with a specialist, including the option for regular check-ins to support financial wellness throughout employee careers, is also a huge plus."  MORE >>