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Retirement Plans Newsletter

December 4, 2023

2 New Job Opportunities 2 New Job Opportunities


[Official Guidance]

Text of Draft Instructions for 2024 IRS Forms 1099-R and 5498: Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, Etc. (PDF)

24 pages. "What's New: [1] Certain corrective distributions not subject to 10% early distribution tax.... [2] Disaster tax relief.... [3] E-filing returns.... [4] Increase in required minimum distribution (RMD) age.... [4] Information Reporting Intake System (IRIS). " [Also available: Draft 2024 Form 1099-R and Draft 2024 Form 5498]  MORE >>

Internal Revenue Service [IRS]


Direct Answers to your ERISA & Retirement Plan Questions!

Our TAG experts average 25+ years of experience and comprehensively answer your retirement questions. TAG provides access to a database of 4,000+ FAQs, quick reference tools, and charts. Learn more!

Sponsored by Wolters Kluwer

[Guidance Overview]

Exceptional Usefulness and Quality icon Long-Term, Part-Time Employees: A Summary of the IRS Regs (PDF)

12-page chart details provisions of the proposed regulations, along with plan document requirements and cautionary notes.  MORE >>

Smith, Gambrell & Russell, LLP

[Guidance Overview]

Exceptional Usefulness and Quality icon 2023 End of Year Plan Sponsor 'To Do' List for Qualified Retirement Plans

"[This article] provides you with a 'To Do' List of items on which you may want to take action before the end of 2023 or in early 2024."  MORE >>

Snell & Wilmer

[Guidance Overview]

The New Fiduciary Rule, Part 8: Robo Advice and Investment Education

"While the current version of PTE 2020-02 does not extend relief for prohibited transactions resulting from robo advice, the proposal would extend the PTE's protections to conflicts of interest so long as the conditions of the exemption are satisfied. Some commenters have suggested that the new definitions of fiduciary status and of covered transactions are so broad that investment education would be considered fiduciary advice.... [T]hat is an exaggeration."  MORE >>

VCP Is Still a Winner for Retirement Plan Sponsors

"[The Voluntary Correction Program (VCP)] gives the plan sponsor the opportunity to strategize proposed corrections with some flexibility and creativity, negotiating for a golden IRS stamp of approval at the end.... VCP tips: [1] Be prepared for the worst case scenario ... [2] It's okay to make an aggressive first move ... [3] Have a Plan B (or C or D) ... [4] Ask for a conference with manager.... Anything other than a straightforward correction should be assessed for VCP advantages."  MORE >>

KLB Benefits Law Group, via Bloomberg Law

Will IBM's Resurrection of Cash Balance Plan Cause a Ripple Effect?

"[W]hile IBM may have been uniquely positioned to revert to its cash balance plan, as the company's [defined benefit] plan, frozen in 2006, is likely now overfunded, many more firms may also be in the position of having an overfunded plan as a result of discount rate changes and high interest rates."  MORE >>

PLANSPONSOR; free registration may be required

How Social Media Influences Plan Sponsor Communications

"When crafting messages for up to five generations of workers, a more succinct, informal approach can help 'maximize the exposure.'.... Big, blocky chunks of text are out. Short videos and visuals that succinctly drive home a key point are in. Email may reach older generations, but Facebook, LinkedIn and TikTok or Instagram are how many younger plan participants get information."  MORE >>

PLANSPONSOR; free registration may be required

No Quick Fix: Closing a Public Pension Plan Leads to Unexpected Challenges (PDF)

45 pages. "This report focuses on five states that ... closed or significantly changed their public pension plans.... Costs have risen markedly for plan sponsors since closing these plans.... This report documents some ways in which these states have attempted to address growing negative cash flows, but those efforts have mostly proven to be temporary fixes rather than long-term solutions that address fundamental challenges."  MORE >>

National Institute on Retirement Security [NIRS]


Social Security Bridge Option Would Help Reduce Early-Claiming Penalties for Those with Retirement Savings (PDF)

"A Social Security Bridge option that is formalized, accessible, and easy to understand would allow beneficiaries to boost monthly benefits and help protect against downward mobility in retirement. This bridge, while important for many, is not as relevant for those with little to no retirement savings. Thus, [the authors] also advocate for increasing the Social Security minimum benefit to ensure adequate lifetime retirement income for the over 63 million Americans who will retire without any retirement savings."  MORE >>

Schwartz Center for Economic Policy Analysis, The New School

Executive Compensation and Nonqualified Plans

You've Had a Restatement: A Primer for Dodd-Frank Clawback Compliance

"As of December 1, the public company you work at or with will have adopted a compliant Dodd-Frank clawback policy. Now the hard work begins to figure out exactly how the clawback process will work ... This article covers the essential steps required to complete the process of clawing back erroneously paid incentive compensation. They are process-intensive and scalable to meet each company's unique circumstances."  MORE >>

Willis Towers Watson

Employee Benefits Jobs

View job as ESOP Administrator for Apex Pension Strategies, Inc.

ESOP Administrator

Apex Pension Strategies, Inc.


View job as ESOP Administrator for Apex Pension Strategies, Inc.

View job as Implementation Specialist for Nova 401(k) Associates

Implementation Specialist

Nova 401(k) Associates


View job as Implementation Specialist for Nova 401(k) Associates

Selected New Discussions

Maximum 415 Accrued Benefit for Cash Balance Plan

"We are setting up a Cash Balance Plan with two participants. One participant is age 41 with an average annual compensation (3 year) of $49,263 at 12/31/2023 and she has 3 years of service with the employer. Interest credit rate = 5% and Actuarial Equivalence is 5% and '23 417 AMT. How do others calculate her maximum account balance at the end of the first year of the Plan? ... My understanding is that the Accrued Benefit under the plan is the actuarial equivalent of the Account Balance. The Accrued Benefit cannot exceed the 415 Maximum Accrued Benefit. I think this is pretty straight forward, but we took over a plan from a large TPA/Actuarial Firm who seemed to ignore this. Is there something I am missing?"

BenefitsLink Message Boards

Death of Nonhighly Compensated Employee with RMD Due

"A terminated 75 year old employee died prior to completing distribution forms. It was her intention to take a lump sum distribution after paying her RMD. Since there are no papers to support this distribution, what should be done? There is a living spouse. The lump sum = $140,000 2023 RMD 18,000 Does her 2023 1099R show 158,000 with !8,000 taxable. Or does the husband have a say regarding the distribution."

BenefitsLink Message Boards

Plan Sponsor Wants to Close Small Cash Balance Plan After Two Years

"Financial Advisor convinces one-person business owner to start up Cash Balance Plan. It is explained clearly that the plan is meant to be long term, at least 5 years. Nice contribution made in first year. Nothing in second year and Plan Sponsor decides it's not for them. No 5500-ez filed as of yet. Contemplating how to react."

BenefitsLink Message Boards

Press Releases

River and Mercantile rebrands to River Global

River and Mercantile Group [RMG]

Last Issue's Most Popular Items

IRS Black Friday Special: Proposed Regs on Long-Term, Part-Time Employee Rules (PDF)

Thomson Reuters / EBIA

IRS Part-Time Eligibility Rules Bring Relief, Surprise, Deadline Concern


Form 5500 Series Filing Extensions: 2024 Brings Changes


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

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