7 pages; Dec. 29, 2023. "Form 8955-SSA ... is used to satisfy the reporting requirements of section 6057(a). Form 8955-SSA is a stand-alone reporting form filed with the IRS.... DO NOT file Form 8955-SSA with Form 5500 ... or Form 5500-SF ... Use Form 8955-SSA to report information relating to each participant who separated from service covered by the plan and is entitled to a deferred vested benefit under the plan but is not paid this retirement benefit." [Also available: 2023 Form 8955-SSA]  MORE >>

Jan. 23, 2024; 10 pages. "Reminders: [1] Certain corrective distributions not subject to 10% early distribution tax.... [2] The 10% additional tax on early distributions doesn't apply to qualified disaster distributions nor does it apply to qualified disaster recovery distributions.... [3] The age restriction for contributions to a traditional IRA has been eliminated." [Also available: 2023 IRS Form 5329]  MORE >>

Jan. 26, 2024. "What's New: Form 5558 has been revised for use only for an extension of time to file Form 5500 series (Form 5500 ... Form 5500-SF ... Form 5500-EZ ...); and/or Form 8955-SSA[.]"  MORE >>

"On January 12, and January 17, 2024, the [IRS] and [DOL], respectively, issued guideposts for implementation of the Pension-Linked Emergency Savings Accounts (PLESAs). ... We know just enough to be dangerous at this point, as far as administering PLESAs, and the likelihood of further guidance in the next six to nine months is pretty low.... [If] plan sponsors are determined to implement the PLESA feature, they do so at some peril and should be extremely conservative in the decisions being made....[C]onsistent with other [SECURE 2.0] changes, the employer can make the changes operationally and wait until 2026 ... to memorialize them in the plan document."  MORE >>

"SECURE 2.0 requires higher earners to put their catch-up retirement savings in a Roth 401(k).... The change to catch-up contribution rules was initially supposed to take effect in 2024 ... However, the IRS then decided to grant a two-year reprieve ... [A]ll plan participants 50 and older will be allowed to continue making catch-up contributions to their regular tax-deferred 401(k)s for the next two years, regardless of income."  MORE >>

"[The judge] noted that, based on the total fees racked up to date -- $142,232 -- approving the [$900,000 attorney fee] requested would be a figure more than six times the amount supported by the lodestar amount ... He also pushed back on why the plaintiffs were also seeking $36,000 in expenses, on top of nearly $40,000 in settlement administration expenses and $15,000 for independent fiduciary fees." [Reichert v. Juniper Networks, No. 21-6213 (N.D. Cal. motion for attorneys' fees filed Nov. 17, 2023; motion for final approval of proposed settlement filed Jan. 4, 2024)]  MORE >>

"[1] Understand the effect of interest rates on defined benefit pension plans ... [2] Stay current on legislative updates ... [3] Maintain the plan document proactively ... [4] Consider the needs of younger generations entering the workforce ... [5] Use technology to your advantage."  MORE >>

"Nearly one-third (30%) of retirement plan advisers are now less likely to recommend an IRA rollover from a retirement plan with less than $50,000 ... Cerulli estimates that 63% of the $845 billion in assets rolled over from defined contribution plans in 2022 were rolled over into IRAs with the assistance of a retirement plan adviser."  MORE >>

"[R]etirees who need to withdraw most of their savings to afford their lifestyle in retirement are better off nurturing their after-tax investments in taxable brokerage or tax-free accounts rather than piling more into the tax-deferred bucket. Next to health care costs, income taxes are a retiree's most significant expense.... Although a non-qualified annuity offers immediate tax relief, it can lead to a higher tax burden in the long run."  MORE >>

"[IRS announced] tax relief for individuals and businesses in parts of Rhode Island affected by severe storms, flooding and tornadoes that began on Sept. 10, 2023. These taxpayers now have until June 17, 2024, to file various federal individual and business tax returns and make tax payments.... [I]ndividuals and households that reside or have a business in Providence County, qualify for tax relief."  MORE >>

"The provider industry, particularly among retirement plan recordkeepers and self-funded health plan TPAs, has become very consolidated resulting in fewer alternative providers for sponsors to choose.... [T]his consolidation has enhanced the leverage of providers and caused 'market terms' to be dictated by the few. In addition, providers have become very adept at maximizing contract leverage via process."  MORE >>