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Retirement Plans Newsletter

February 5, 2024

6 New Job Opportunities 6 New Job Opportunities


[Official Guidance]

Text of IRS Request for Comments on Rev. Proc. 2024-4: Procedure for IRS Employee Plans Determination Letters, Rulings and Agreements

"[T]he IRS is soliciting comments concerning Revenue Procedure 2024-4 ... Under this revenue procedure ... taxpayers can request determination letters and letter rulings from the Commissioner, Tax Exempt and Government Entities, Employee Plans Office on how the tax laws apply to them. Employee Plans requires information from taxpayers in order to process these requests."  MORE >>

Internal Revenue Service [IRS]

[Guidance Overview]

Exceptional Usefulness and Quality icon The Fiduciary Rule's Foray Into Uncharted Territory

"[Neither] the DOL, SEC nor FINRA have the authority under federal law to enforce the imposition of this compensation design regulation as it applies to non-registered annuity contracts by non [broker-dealers] to IRAs.... That responsibility falls to the states. The states then only have the authority to enforce their own annuity design rules, not the DOL's. This means that successful implementation of the proposed rules necessitates the coordination between some federal entity (which needs to build insurance expertise) and the states."  MORE >>

Business of Benefits

[Guidance Overview]

IRS Proposes Long-Term, Part-Time Employee Regs

"If an employee is eligible to participate in the plan because the plan's eligibility rules are more generous, the employee is not an LTPTE and none of the special LTPTE rules apply to that employee.... Clarification and confirmation of eligibility service-counting rules for LTPTEs ... Rules for determining vesting service for LTPTEs ... Former LTPTEs ... Top-heavy testing rules and relief ... Amendment rules and relief."  MORE >>

Morgan Lewis

[Guidance Overview]

You Don’t Have To Go Home, But You Can’t Stay Here: Cashout Limit Increases to $7000

"[1] The more participants you can drop, the fewer participants you have to worry about losing.... [2] Sponsors on the borderline of needing an audit ... might get the plan under the limit.... [3] [R]emoving participants can reduce the leverage that a participant class can have, even if the claims aren't all that strong.... [4] Distributing the balance of a participant who isn't 100% vested allows the non-vested amounts to be moved into the plan's forfeiture account, and those amounts can pay plan expenses, offset contributions, or be reallocated to other employees.... [5] For ESOPs, forcing out a participant's balance earlier can help control the plan's repurchase liability, "  MORE >>

Jackson Lewis P.C.

[Guidance Overview]

Pre-Approved Plan Eligibility Checklist (PDF)

"Use this checklist to determine which retirement plans can use pre-approved plan documents to satisfy the requirements for preferential tax treatment under the Internal Revenue Code.... The programs available for pre-approved plans are different depending on the type of plan and the type of employer."  MORE >>

Venable LLP, via LexisNexis Practical Guidance

[Guidance Overview]

IRS Guidance Illuminates SECURE 2.0's Roth Employer Contributions

"The new provision allowing DC plan participants to designate employer matching and nonelective contributions for Roth treatment took effect with SECURE 2.0's enactment, but key implementation questions -- including on tax reporting -- remained unanswered until IRS published Notice 2024-2.... [T]he notice doesn't address SECURE 2.0's provision mandating Roth treatment for catch-up contributions by certain high-earning employees ... IRS will accept comments on the notice through Feb. 20."  MORE >>


[Guidance Overview]

SECURE 2.0 Could Reduce RMD Rules for Annuitized Annuities – But Proper Valuation Is Needed

"SECURE 2.0 ... [allows] RMDs for the annualized IRA and the other (non-annuitized) IRA funds to be aggregated. To do this, the prior-year 12/31 value of the annuitized IRA and the other funds are combined, and this sum is divided by the applicable life expectancy factor. This becomes the total RMD for the year. The amount of annual annuity payments are then subtracted from the total RMD to determine how much of the total RMD remains and must be taken from the other IRA accounts."  MORE >>

Slott Report

Annuity Purchases for Retirees with Small Benefits: Guaranteed Savings for 2024

"Annuity purchases for retirees with small benefit amounts can be an easy and highly effective way to reduce PBGC premiums and save money at no cost to plan participants. For plan sponsors not subject to the PBGC Variable Rate Premium Cap, purchasing annuities for retirees receiving less than $350 monthly will save the plan money. For plan sponsors subject to the cap, purchasing annuities for retirees receiving less than $1,100 monthly will save the plan money."  MORE >>

October Three Consulting

PEPs Could Match Single Employer Plan Adoption in 5 to 10 Years

"It'll take time, but it will happen, especially in the small- and mid-size markets, in which [attorney Fred Reish] predicts that at least 80% of employers could have their retirement plan needs met by a PEP. 'People have to fully understand them. They've got to get comfortable with the providers they prefer working with, and they've got to have at least a few cases under their belt before they're fully confident that they understand and can work with that arrangement.' "  MORE >>

American Retirement Association [ARA]

Americans' Views on Defined Contribution Plan Saving, 2023 (PDF)

24 pages. "Survey responses indicated that Americans value the discipline and investment opportunity that 401(k) plans represent and largely oppose changing the tax preferences or investment control in those accounts. A majority of respondents also affirmed a preference for control of their retirement accounts and opposed proposals to require a portion of retirement accounts to be converted into a fair contract promising them lifetime income from either the government or an insurance company."  MORE >>

Investment Company Institute [ICI]

Retirement Confidence for American Workers Has Been Low Since 2022

"[R]etirement and financial confidence have lingered at 'below average' levels since the second quarter of 2022, according to the firm's new PGIM RetireWellTM Confidence Index. In addition, the gap between financial confidence and retirement confidence has widened dramatically since the start of 2022, which could indicate that while investors may feel relatively secure in their investments today, they worry greatly about the future."  MORE >>


Data and Modeling to Better Understand Mississippi PERS

"Today, PERS is short by over $25 billion, and even more public pension debt is likely to be revealed as the plan continues to reduce investment expectations down to more realistic national averages.... Pension Integrity Project modeling of the proposed changes shows that some features (non-guaranteed COLA) would significantly reduce costs for PERS, while other changes (reducing the vesting period and member contributions) would add costs to government employers and the state.... Ultimately, the system would still be in a very precarious position with costs likely to continue to rise."  MORE >>

Reason Foundation

Executive Compensation and Nonqualified Plans

Chancery Finds Tesla Board Breached Fiduciary Duties in Approving

"The court viewed Tesla's Compensation Committee as having simply given Musk whatever he wanted.... The decision offers cautionary lessons for boards negotiating executive compensation plans -- but presents a unique fact situation.... The case highlights the drawbacks of a compensation committee not being comprised of at least one clearly independent director." [Tornetta v. Musk, No. 2018-0408 (Del. Chanc. Jan. 30, 2024)]  MORE >>

Fried Frank

Employee Benefits Jobs

View job as Plan Document Specialist for MAP Retirement USA LLC

Plan Document Specialist

MAP Retirement USA LLC


View job as Plan Document Specialist for MAP Retirement USA LLC

View job as Retirement Plan Administrator for Retirement Solutions Specialists

Retirement Plan Administrator

Retirement Solutions Specialists

Remote / Jacksonville FL / Hybrid

View job as Retirement Plan Administrator for Retirement Solutions Specialists

View job as Retirement Distribution & Tax Specialist for Alerus

Retirement Distribution & Tax Specialist


Remote / MN / ND

View job as Retirement Distribution & Tax Specialist for Alerus

View job as Employee Benefits Account Manager for U.S. Retirement & Benefits Partners

Employee Benefits Account Manager

U.S. Retirement & Benefits Partners

Wayne PA / Hybrid

View job as Employee Benefits Account Manager for U.S. Retirement & Benefits Partners

View job as Defined Benefit Plan Enrolled Actuary for Associated Pension Consultants

Defined Benefit Plan Enrolled Actuary

Associated Pension Consultants


View job as Defined Benefit Plan Enrolled Actuary for Associated Pension Consultants

View job as Retirement Plan Termination Specialist for SS&C Technologies

Retirement Plan Termination Specialist

SS&C Technologies

Quincy MA / Kansas City MO / Hybrid

View job as Retirement Plan Termination Specialist for SS&C Technologies

Selected New Discussions

Tax Credit Available for Acquired Plans?

"A company acquired an existing 401k plan (stock purchase). Can the new company get the tax credit (as if it were a new plan, new company)? There is a new EIN, new trustees, etc., but the same, existing plan. Also, this company plans to purchase other companies soon, but they plan to have them terminate their existing plans (if applicable), as part of the purchase agreement. They would then add them (as controlled groups) to the current plan. (Same 1 owner (and spouse) on all companies.) In those instances, can they get the tax deduction for each and every new company as they are established?"

BenefitsLink Message Boards

Designation of Beneficiary for Participant Separated from Spouse

"A newly eligible participant is filling out her DOB. She and her husband have been separated for 16 years. They file their taxes separately. She listed her son as the beneficiary of her 401k balance. Is there any reason why she can't list the son as primary? Does separated spouse need to sign off on that? Any ideas or sites that I can go to to clarify this issue?"

BenefitsLink Message Boards

Where to Find the Actual IRC Text Online, Incorporating (or Identifying) SECURE 2.0 Changes

"Does anyone have a good website for the actual text of internal revenue code, specifically that incorporates the changes from SECURE 2.0? The ones I usually use, such as the Cornell Legal Institute don't have those sections updated yet, and I don't know when they will be. So when I want to see how the updated language works with the prior language, I have to have both the text of SECURE 2.0 open as well as the code as it was pre-SECURE 2.0. Its getting a little old. When I want to really understand something, I do try to read the source material, not just other's articles and interpretations, so having an updated integrated source of the IRC would be so helpful."

BenefitsLink Message Boards

Last Issue's Most Popular Items

IRS 'Grab Bag' Guidance on SECURE 2.0 Provisions

Willis Towers Watson

Long-Term Part-Time Employee Eligibility Rules Now in Effect

Troutman Pepper

401Kids Savings Act Would Create Savings Accounts for Eligible Minors


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

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