"The IRS is soliciting comments concerning Form 5307, Application for Determination for Adopters of Modified Nonstandardized Pre-Approved Plans.... The form was revised to eliminate features of the determination letter program that are of limited utility to plan sponsors in comparison with the burdens they impose. The form was also revised to enable electronic submission on Pay.gov."  MORE >>

"Most of the dollar limits that are subject to adjustment for cost-of-living increases will increase for 2024.... Plan sponsors should update payroll and plan administration systems for the 2024 cost-of-living adjustments and incorporate the new limits in relevant participant communications, like open enrollment materials and summary plan descriptions."  MORE >>

"Most notably, the limitation on annual salary deferrals into a 401(k) or 403(b) plan will increase to $23,000, and the dollar threshold for highly compensated employees will increase to $155,000."  MORE >>

Cumulative chart details inflation-adjusted qualified plan limits in a side by side chart for years 2007-2024, with a link to each year's IRS announcement  MORE >>

"[T]he proposal does appear to alter the existing framework in some very meaningful ways.... These changes have the collective effect of significantly lowering the bar for what would be considered fiduciary investment advice. And, in what could be a troubling development, the new proposal does not seem to have a carveout for advice rendered to sophisticated plan fiduciaries in the 'sales' context as under the 2017/2018 Rule."  MORE >>

"Most significantly, the proposed rule expands DOL's regulatory definition of an 'investment advice fiduciary' to both ERISA employee benefit plans and to IRAs.... The proposal would extend ERISA's fiduciary reach to one-time investment advice and replace the existing five-part test with a broader three-part standard[.]"  MORE >>

"Negative commentary on the Proposed Rule is already in circulation. Nevertheless, from a litigation perspective, the Proposed Rule seems to be carefully crafted to advance the Department's longstanding objective of enhancing protections for retirement investors while steering clear of relationships that are not meant to be fiduciary in nature. It seems unlikely to prompt a scramble to rework standard investment-related documents for fear of having ordinary communications treated as fiduciary advice."  MORE >>

"If you're a recordkeeper or third-party administrator, would the rule change any aspect of your relationships with investment brokers and advisers? If you provide services as a Section 3(16) administrator, are you ready to defend claims that you knew an investment adviser breached and you didn't do enough to remedy that other fiduciary's breach? And how about your own business: [1] Even as only a third-party administrator, do you sometimes help an employer select a participant-directed plan's 'menu' of investment alternatives? Or do you as a part of your business help an employer select a recordkeeper and that choice means taking on some of the recordkeeper's or its affiliate's investments? [2] Do you get any compensation, however indirectly, you would not get unless the plan made a choice under #1?"  MORE >>

"Under SECURE 2.0, the dollar limit for mandatory force-outs was increased from the $5,000 described above to $7,000 for distributions after December 31, 2023.... Analysis of account balances by age and tenure reveals that the force-out provision of up to $5,000 most commonly affects younger and low-tenure public plan participants.... [C]harts illustrate how the increased threshold expands the potential affected population of participants to those transitioning from early career to mid-career."  MORE >>

"Based on early data, it appears likely that having and using even modest amounts of emergency funds improves household balance sheets over time. And simulations suggest that universal Automatic IRAs -- including emergency savings -- for workers without employer plans could increase household assets for all age and income groups, especially Blacks and Hispanics."  MORE >>

"The IT giant on Wednesday informed its US workers that starting on January 1, 2024, the corporation will no longer match employee contributions to their 401(k) retirement plans. Instead, it will offer a new benefit called a Retirement Benefit Account (RBA).... By shifting its employee 401(k) contribution from six percent (five percent matching plus one percent automatic contributions) to a five percent RBA contribution, that's a 16.66 percent savings in outflow."  MORE >>

"Consistent with its mission, ARA for over 20 years has raised concerns that the existing regulatory definition of investment device is ill-suited for advice given to plan sponsors with respect to participant-directed 401(k) retirement plans.... [ARA supports] DOL's proposed retirement security regulation updating the definition of investment advice under ERISA because ... it will ensure that advice given to plan sponsors with respect to plan investments under any and all circumstances is required to comply with the fiduciary standards of ERISA."  MORE >>