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Retirement Plans Newsletter

January 4, 2024

3 New Job Opportunities 3 New Job Opportunities


[Guidance Overview]

New Roth Provisions Effective in 2024

"Congress included a provision in SECURE 2.0 that allows for rollovers of unused 529 funds to Roth IRAs. While this a worthy idea, beware of important restrictions on this new rollover rule.... SECURE 2.0 ... [exempts] Roth 401(k) funds from lifetime RMDs. Keep in mind that beneficiaries of inherited Roth 401(k)s are still subject to RMDs."  MORE >>

Slott Report


Register for ASC’s Fundamentals of Qualified Retirement Plans CE Webcast Series!

New to the Industry? Looking for a review? Start 2024 with ASC's "Fundamentals" Webcast Series presented by ERISA expert John Griffin, J.D., LL.M. Session 1 includes an intro to Qualified Plans, Coverage & Vesting, Participation & more. Register Now

Sponsored by ASC

[Guidance Overview]

IRS Clarifies SECURE 2.0 Mandatory Automatic Enrollment Provisions

"Notice 2024-2 provided guidance on ... which plans would be exempt from [the automatic enrollment] requirement ... What is a grandfathered plan? ... What about participating employers in a MEP or PEP? ... What is the status of a plan that is spun off from a MEP or PEP? ... Do we treat merged plans as grandfathered plans? ... What about mergers of existing plans into a MEP or PEP? ... What about 403(b) plans? ... Do the mandatory EACA rules apply to the new starter 401(k) deferral-only plans? ... What happens if we make a mistake with automatic enrollment?"  MORE >>

Ferenczy Benefits Law Center

[Guidance Overview]

The New Fiduciary Rule, Part 13: Advisors and Agents with Restricted Investment Menus

"[T]here is little helpful guidance on what a prudent process should look like for the evaluation of annuity contracts.... [C]osts are embedded in products such as fixed rate and fixed indexed annuities. How should the costs be identified and quantified? What should the costs be compared to?"  MORE >>

DOL Receives Over 19,000 Comments on Fiduciary Rule Proposal

"[On January 2, the DOL] wrapped up a relatively quick comment period ... on its controversial fiduciary rule.... [S]upporters and opponents [flooded] the DOL inbox ... Trade associations are generally circumspect about potential legal challenges. Not this time. Perhaps emboldened by a 2018 federal appeals court decision tossing out the 2016 fiduciary rule, opponents openly addressed future lawsuits against the current version."  MORE >>

How Firms Are Closing the Gender Gap in Retirement Savings

"While some factors ... demand systematic change beyond the financial services industry, firms can take steps to better support female participants by working to improve financial literacy among women, providing inclusive inputs for retirement readiness tools and offering a balanced suite of education content and practical tools within the participant site."  MORE >>

Corporate Insight [CI]

Pension Finance Update, December 2023

"Pension finances were mixed again in December, as lower interest rates pushed up liabilities while higher stock markets increased asset values. [The two] model plans diverged modestly, with Plan A losing 2% last month but ending 2023 up 7%, while the more conservative Plan B was flat in December, ending the year up almost 2%."  MORE >>

October Three Consulting

U.S. Corporate Pension Plans Funding Status, December 2023

"The aggregate funded ratio for U.S. corporate pension plans increased by an estimated 0.6 percentage points in December, ending the month at 105.7%, a 7.0 percentage point increase from December 2022 ... The aggregate funded ratio is estimated to have increased by 0.8 percentage points during the fourth quarter and by 7.0 percentage points over the calendar year 2023.The 7.0 percentage point increase marks the third largest calendar year increase since 2012."  MORE >>

Wilshire Associates


ACLI Comment Letter to DOL on Proposed Retirement Security Rule (PDF)

40 pages. "ACLI and its members remain perplexed as to why the Department continues to commit governmental resources toward a re-definition of the term 'investment advice fiduciary.' This 'new' Proposal incorporates many of the same inappropriately expansive concepts as were included in the Department's 2016 fiduciary rulemaking package that was vacated by the Fifth Circuit as inconsistent with the statutory text of ERISA.... [T]his Proposal has several significant fatal flaws, is similarly inconsistent with the statutory text and, therefore, must be withdrawn."  MORE >>

American Council of Life Insurers [ACLI]

Employee Benefits Jobs

View job as Enrolled Actuary for Pinnacle Plan Design, LLC

Enrolled Actuary

Pinnacle Plan Design, LLC


View job as Enrolled Actuary for Pinnacle Plan Design, LLC

View job as Retirement Plan Onboarding Coordinator for The Finway Group

Retirement Plan Onboarding Coordinator

The Finway Group

West Des Moines IA

View job as Retirement Plan Onboarding Coordinator for The Finway Group

View job as Retirement Account Administrator for Alerus

Retirement Account Administrator


Remote / MN / ND

View job as Retirement Account Administrator for Alerus

Selected New Discussions

Late RMD

"An RMD was requested on 12/29/2023. The fund company didn't process it until 1/2/2024. They said a 2024 1099-R will be generated since the distribution wasn't actually done until 2024. How is the handled by the participant regarding his taxes? He is expected to reflect a 2023 RMD but will not have a 1099-R to show for it. in 2024, he will end up with 2 1099-R's."

BenefitsLink Message Boards

Statutory Exclusion: Excluded Group Fails 401(a)(4)

"Plan provides for immediate entry for deferrals and Safe harbor non-elective. Profit Sharing requires 12 months of service. Plan is not top heavy. In 2023 an owner's son got hired and deferred and is getting the safe harbor along with 6 other NHCEs. They all are getting the 3% safe harbor. I am testing the plan using cross testing. This passes non-discrim testing for the >12-month group but fails for the <12-month group. I'll have to allocate profit sharing to the <12-month group to pass testing. Or does it need to be allocated as QNEC? In hindsight, the plan should have excluded HCEs from the safe harbor non-elective. But that is obviously too late."

BenefitsLink Message Boards

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Rollover Recommendations Will Be Fiduciary Advice -- and What About Withdrawals?


Faegre Drinker

Form 5500 Update: Review of Recent and Upcoming Changes

January 31, 2024 WEBINAR

Worldwide Employee Benefits Network [WEB]

Last Issue's Most Popular Items

Lawsuit Alleges Wells Fargo Advisor's Mistake Caused Costly RMD Shortfall


401(k) Checkup: Elective Deferrals

Haynes and Boone, LLP

American Benefits Council Comment Letter to DOL on Retirement Security Proposal

American Benefits Council

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

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