"For purposes of determining covered compensation for the 2024 year, the taxable wage base is $168,600. ... [T]ables provide covered compensation for 2024."  MORE >>

"there are actually two best interest decisions -- the first is account type and the second is about the investment options within the account type.... [A]rguably, there are two steps to the limited menu analysis. If a determination is made that the limitations will not cause an imprudent recommendation, the bases for that conclusion must be reduced to writing. Then, the financial professional will need to engage in a best interest process[.]"  MORE >>

58 pages. "EBSA's review found that ... 30 percent of the audits (3 out of 10) contained major deficiencies ... This puts $927 billion and 11.7 million plan participants and beneficiaries at risk, an increase of $274 billion compared with prior EBSA studies.... [T]here continues to be a clear link between the number of employee benefit plan audits a CPA performed and the quality of the audit work.... EBSA has made several recommendations in the areas of enforcement, regulations, and outreach."  MORE >>

" 'Reallocating forfeitures to other contribution obligations under the same plan to cover other promised benefits has been a commonplace practice at least since the IRS regulation became effective in 1963,' the Clorox motion explains. 'This practice has been endorsed since that time by both Congress and the [DOL] ... Acknowledging as much, the Plan's governing documents explicitly allow this practice.' " [McManus v. Clorox Co., No. 23-5325 (N.D.Cal. motion to dismiss filed Dec. 13, 2023)]  MORE >>

"The Fifth Circuit affirmed the district court's decision, holding that [1] the collection of a contractually predetermined fixed fee does not constitute a fiduciary act under ERISA; [2] VALIC was not a 'party in interest' when it entered into the Plan's annuity contract; [and] [3] VALIC's collection of the contract's surrender fee does not constitute a separate transaction[.]" [D.L. Markham DDS, MSD, Inc. 401(K) Plan v. Variable Annuity Life Ins. Co., No. 22-20540 (5th Cir. Dec. 14, 2023)]  MORE >>

"The trend toward more adviser RFPs is not just due to changes among plan providers. It' is also being driven by the very aggregation in the retirement plan adviser and wealth management space that is making adviser offerings more robust ... When a plan sponsors loses a recordkeeper, it can also be a time for widespread benchmarking across all plan services."  MORE >>

"[T]he Expanding Access to Retirement Savings for Caregivers Act (HR 6772) [would] allow individuals who took at least one year out of the workforce -- for the purpose of caring for a family member -- without receiving earned income to make catch-up contributions in years prior to age 50 to their 401(k) plans, IRAs and other eligible retirement accounts."  MORE >>

"[This survey] asked 5 multiple choice questions about credit score, loans, retirement savings, investing, and interest accrual. Only 39% of college students got more than half the answers correct, while their high school counterparts scored slightly lower at 37%.... When asked how well their classes have prepared them to make personal financial decisions, just 11% of high school and 18% of college students responded 'very well' or 'extremely well'. And for high school students who are not planning to attend college, the positive response dips to just 10%."  MORE >>

"[S]teps that courts and Congress could take in the coming year to help stem meritless fiduciary breach litigation, better enable recordkeepers and plan sponsors to timely implement provisions of SECURE 2.0, and encourage the adoption of new plans: [1] Decide when participants can be required to arbitrate ERISA fiduciary breach claims.... [2] Decide when lawsuits based on alleged prohibited transactions can proceed.... [3] Stop trying to micromanage plan investments.... [4] Congress should make it more attractive to adopt and administer 401(k) plans.... [5] The IRS and [DOL] should clarify SECURE Act rules faster."  MORE >>

142 pages; Dec. 15, 2023. "his guide provides information on unrelated business income (UBI) and unrelated business income tax (UBIT). The unrelated business income tax provisions are found in Sections 511 through 515 [of the Internal Revenue Code]."  MORE >>

"[1] January 1, 2024, is the operational deadline for 401(k) plans and 403(b) plans to liberalize service-based exclusions for certain long-term, part time employees. [2] December 31, 2023, is the deadline for group health plans to submit an attestation of compliance regarding 'gag clauses' in their provider, network, and TPA agreements. [3] January 1, 2024, is the deadline for calendar-year group health plans to make cost-sharing information available for all covered items and services."  MORE >>

"Effective oversight of service provider vendors is essential for managing risk and potential adverse impacts to your reputation.... Unlike functions that are performed in-house, when services are outsourced, you may have limited information on hand and less control over the process. A System and Organizational Controls (SOC) report can be an invaluable tool in helping you gain confidence about the controls at your service providers."  MORE >>

"[1] Last chance to correct certain Section 409A document failures discovered in 2023 ... [2] Nonqualified deferred compensation deferral elections should be made on or before December 31, 2023 ... [3] Take certain action to address impact of Tax Cuts and Jobs Act on Section 162(m) of the Code ... [4] Review whether equity-based compensation plans have sufficient shares remaining for 2024 awards ... [5] Review director pay practices and consider separate annual limits on director equity awards ... [6] Section 6039 of the code information statements due by January 31, 2024 ... [7] Consider clawback disclosure issues ... [8] Consider 10b5-1 disclosure issues."  MORE >>