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Retirement Plans Newsletter

January 30, 2024

3 New Job Opportunities 3 New Job Opportunities


[Official Guidance]

Text of Instructions for 2023 IRS Form 5500-EZ: Annual Return of a One-Participant (Owners/Partners and Their Spouses) Retirement Plan or a Foreign Plan (PDF)

10 pages. "What's New: A new IRS compliance question regarding whether a plan sponsor is an adopter of a pre-approved plan is added to Line 12." [Also available: 2023 IRS Form 5500-EZ (fillable PDF)]  MORE >>

Internal Revenue Service [IRS]

[Official Guidance]

Text of Instructions for IRS Form 5330: Return of Excise Taxes Related to Employee Benefit Plans (PDF)

Jan. 19, 2024; 16 pages. "What's New ... [1] Mandatory electronic filing.... [2] Effective in 2024, Form 8868, Application for Extension of Time To File an Exempt Organization Return or Excise Taxes Related to Employee Benefit Plans, is used to request an extension of time to file Form 5330."  MORE >>

Internal Revenue Service [IRS]

[Guidance Overview]

IRS Delays Electronic Filing of Form 5558

"[In] an abrupt turnaround at the end of December 2023, the IRS announced that this change would not be available until January 1, 2025, due to a delay in preparing the EFAST2 system for this process. So, for 2023 filings, paper copies of Form 5558 must still be filed. Remember that Form 5558 must be filed before the deadline for filing Form 5500."  MORE >>

KLB Benefits Law Group

DOL Lawsuit Alleges TPA Stole $5.5M in Retirement Plan Assets from 17 Clients

"The DOL requested a court order removing RiversEdge and Palguta from serving as fiduciaries and service providers of the plans they administer and appointing an independent fiduciary to secure plan records, assist with recordkeeping transition activities and perform an accounting of suspicious asset transfers." [Su v. RiversEdge Advanced Retirement Solutions, LLC., No. 24-0104 (W.D. Penn. complaint filed Jan. 26, 2024)]  MORE >>

PLANSPONSOR; free registration may be required

What's Your New Year's Resolution for Your DC Plan?

"2024 is going to be a real inflection point regarding adoption of many of the [SECURE 2.0] provisions.... [U]tilizing dynamic data analytics tools can help employers understand and model the potential impact of these plan design decisions on their employees and their program costs.... [O]ngoing challenges and the specter of potential litigation [have] made fiduciaries less innovative in nature.... The ability to share confidential information across systems safely is critical as is how the employee experience is delivered."  MORE >>

Willis Towers Watson

Advisers Rarely Recommend Active TDFs to Retirement Plans

"A survey conducted by Cerulli Associates showed that only 7% of defined contribution plan advisers would recommend an actively managed target-date fund to a retirement plan client ... The survey also found that that student loan matching and Roth matching contributions were the two provisions from the SECURE 2.0 Act of 2022 that advisers say they are most likely to recommend to a plan."  MORE >>


401k Plan Sponsors Must Be Wary Of Fiduciary Liability Associated With Bitcoin ETFs

"There's no denying Bitcoin-based ETFs represent [uncharted] territory. That in itself means risk. Worse, it's a risk that's hard to quantify right now.... Beyond ERISA, the SEC has gone out of its way to provide a warning about Bitcoin investments. While the SEC can only talk to individual investors, that doesn't mean plan sponsors can ignore that agency. The very fabric of ERISA demands plan sponsors have a comprehensive due diligence process in place with selecting and monitoring plan investments."  MORE >>

Fiduciary News; free registration required

The Impact of Financial Guidance on Retirement Readiness (PDF)

"Over 90% of the respondents have no earned income, meaning they are reliant on Social Security, pensions and savings to cover their expenses during retirement. Survey responses show that retired Americans who maintain a relationship with a financial professional are more financially secure.... [T]he findings are consistent across many measures of financial health"  MORE >>

Insured Retirement Institute [IRI]


ARA Comment Letter to IRS on Proposed Long-Term, Part-Time Guidance (PDF)

"ARA recommends that the [IRS]: [1] Revise the rules regarding vesting service to conform with Congressional intent or provide relief to mitigate the significant financial consequences imposed on plan sponsors by the timing of the Proposed Rule ... [2] Clarify that LTPTEs may be permissively disaggregated regardless of actual eligibility to participate in the plan ... [3] Provide section 411(d)(6) relief for the revocation of good faith amendments already adopted to comply with the SECURE Act."  MORE >>

American Retirement Association [ARA]


American Benefits Council Comment Letter to IRS on Proposed Regs for Long-Term, Part-Time Employee Under Section 401(k)

20 pages. "[T]he Council is concerned with certain aspects of the proposed regulations that are likely to limit participation opportunities for LTPT employees and, in the absence of additional guidance and changes, increase costs and administrative burdens for employer plan sponsors."  MORE >>

American Benefits Council


Meta Effect of Being Non-ERISA

"The 401(k) is subject to protections under [ERISA]. The K-12 403(b), known as a governmental 403(b), is not.... Meta, better known as Facebook, is headquartered in Menlo Park. If they offered the same vendor list as the school district they would be sued. Why? Because of the dozens of red-rated vendors in the plan."  MORE >>


Employee Benefits Jobs

View job as Client Services Consultant for Redbrick Insights, LLC

Client Services Consultant

Redbrick Insights, LLC

Lake Mary FL

View job as Client Services Consultant for Redbrick Insights, LLC

View job as Supervisor, Conversion Team for Insperity

Supervisor, Conversion Team


Kingwood TX

View job as Supervisor, Conversion Team for Insperity

View job as TPA Retirement Plan Administrator for CPS

TPA Retirement Plan Administrator


Remote / DE / GA / IA / IL / MI / RI

View job as TPA Retirement Plan Administrator for CPS

Selected New Discussions

Post-Severance Compensation: Include or Exclude Based on Date Paid?

"Suppose a participant terminates employment on (X) date, and receives final paycheck 3 days later. Included in that final paycheck is a 'severance' payment that would not otherwise qualify as 'post severance' pay. Because the paycheck date is AFTER the severance date, this is considered under the post-severance rules, and is excluded. Now, suppose the final paycheck date is, in fact, the day before the actual severance date. Now it just falls under the regular rules, and if plan defines as W-2, then it would be included, right? You can't call it post-severance if it is pre-severance, agreed? Now for the real question. If paid ON the actual (X) severance date, would you classify as pre or post severance? Any 'gray' on this -- for example, if it was paid as a separate check instead of being included in one big, final check?"

BenefitsLink Message Boards

Change to Match Computation Period with Incorrect Effective Date in Plan Amendment

"We have a client who signed a plan amendment to change their match computation period from per payroll to annual with a true-up provision, but they signed the amendment with the wrong intended effective date. They intended to start the true-up for the plan year 2024 (for true-up to be paid in early 2025), but instead signed the amendment effective 01/01/2023. They don’t want to fund the true-up for 2023 as they have not budgeted for this.

"To fix, we asked the RK to draft a document with effective date 1/1/23 with the original match computation of per payroll, while also drafting a second document effective for 1/1/24 with the change to annual with the true-up.

"The recordkeeper is reluctant to process these as they say this could be viewed as a cutback of benefits. Do you agree with that? The plan has never funded a true-up and have been paying their matching contributions per payroll as they always have. Their match is also discretionary, the formula is not stated in the plan document. It seems like their plan document allows some flexibility."

BenefitsLink Message Boards

Press Releases

Frank Giampietro, Kevin Theissen Join Business Group on Health's Board of Directors

Business Group on Health

Dave Gray Joins Empower as Executive Vice President for Enterprise Solutions


Former CalPERS Executive Named Executive Director of the National Institute for Public Employee Health Care Policy

National Institute for Public Employee Health Care Policy

Reliance Matrix Launches First-of-Its-Kind Integration with Plansource

Reliance Matrix

Pacific Life Teams Up with Fidelity Investments on New Retirement Solution to Provide Guaranteed Lifetime Income

Pacific Life

Introducing Guideline Pro: A Modern 401(k) Platform for Growing Your Firm's Retirement Business


BlackRock Expands Commitment to DC Advisor Channel


Webcasts and Conferences
(Retirement Plans / Executive Compensation)

2024 NAFE

April 28, 2024 in TX

NIPA [National Institute of Pension Administrators]

Last Issue's Most Popular Items

Negotiating Provider Contracts for Benefit Plans

Holland & Hart LLP

Pension-Linked Emergency Savings Account Guideposts Issued

Ferenczy Benefits Law Center

What to Know About Catch-Up Contributions

Charles Schwab

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

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