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Retirement Plans Newsletter

February 12, 2024

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[Official Guidance]

2024 IRS Form 1099-R: Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. (PDF)

"Generally, distributions from retirement plans (IRAs, qualified plans, section 403(b) plans, and governmental section 457(b) plans), insurance contracts, etc., are reported to recipients on Form 1099-R."  MORE >>

Internal Revenue Service [IRS]

Student Loan Payments Negatively Impact 401(k) Contribution Rates, Account Balances

"Among those with incomes less than $55,000, the study found the average employee contribution rate of those making a student loan payment was 5.3% compared with 5.7% for those not making student loan payments. The difference is larger among those with incomes of $55,000 or more: 6.1% with payments vs. 7.3% without payments."  MORE >>

401(k) Specialist

When TPA Meets Advisor

"As the TPA industry becomes more remote in nature, it's increasingly difficult to find ways to build relationships, facilitate new ones, and effectively communicate the value TPAs provide.... [1] Making the most of your time ... [2] TPAs are retirement plan experts ... [3] Improving sales and referral opportunities ... [4] Retention ... [5] Building your retirement army."  MORE >>

American Retirement Association [ARA]

Public Pension Investment Expenses Fall to Four-Year Low

"[A]verage investment management expenses fell to 39 basis points, down from 49 basis points the year prior, while administrative expenses remained steady year over year. Investment expenses reached a four-year low, suggesting a return to normalcy from the pandemic."  MORE >>

National Conference on Public Employee Retirement Systems [NCPERS]

Retirement Plan Advisors Step Up to Help Increase Youth Financial Literacy

"According to a recent Schwab survey, nearly two-thirds (63%) of U.S. adults chose financial education as the most important supplementary graduation requirement to math, English, and science, and 25 states have a financial education requirement to graduate. The retirement plan advisory industry is increasing its volunteerism and advocacy efforts in the area[.]"  MORE >>

American Retirement Association [ARA]

Common Retirement Fears and How to Overcome Them

"[1] Boredom is one of the biggest concerns.... [2] the fear of outliving one's savings is common.... [3] Navigating health insurance.... [4] Transitioning from savings to income.... [5] Managing new family dynamics."  MORE >>

Kiplinger

[Opinion]

Quantifying Fiduciary Prudence and the Quality of Investment Advice

"A simple cost/benefit analysis would seem to be a part of a prudent process for plan sponsors to use evaluating the fiduciary prudence of investment products in defined contribution plans (DCPs). However, based on the evidence, very few plans seem to use cost/benefit analyses as part of their fiduciary prudence process. Furthermore, even when plans do use cost/benefit analysis, there are often legitimate questions as to whether such analyses were properly conducted."  MORE >>

The Prudent Investment Adviser Rules

Benefits in General

[Guidance Overview]

Going Above and Beyond: ERISA Disclosures (PDF)

"[M]ultiple court decisions demonstrate that fiduciaries may need to go above and beyond [ERISA's] requirements when providing notices and benefits information to plan participants.... [1] Provide legally and factually accurate communications at all times. [2] Make sure all communications are understandable to the average participant. [3] Consider whether additional information is appropriate given a participant's unique circumstances. [4] Quickly correct misstatements or incorrect communications. [5] Advise affected participants about benefit changes under serious consideration."  MORE >>

benefits magazine, a publication of The International Foundation of Employee Benefit Plans [IFEBP]

Employee Benefits Jobs

View job as Regional Vice President, Sales for MAP Retirement USA LLC

Regional Vice President, Sales

MAP Retirement USA LLC

Remote

View job as Regional Vice President, Sales for MAP Retirement USA LLC

Selected New Discussions

Written Loan Repayment Procedures Unintentionally Changed with Restatement

"We have a client that was using a Custodian that allowed for participant loans to be repaid using ACH. The Plan permits a terminated participant, making payments via participant ACH, who has elected to defer receipt of a final distribution, to continue making scheduled installment payments on the participant's outstanding loan. When the Plan document was restated as a Post PPA document, the ACH/terminated participant repayment loan provisions were not maintained. Since 1/1/22, the Plan has not been operating in accordance with their written loan policy. (They continued to allow for ACH/terminated participant repayment because it was never their intent to remove this provision. The Post PPA loan policy change was a Scrivener's error.) We are thinking about doing a retroactive amendment to return the ACH/terminated participant repayment loan provisions to the Post PPA document. Is this an appropriate correction?"

BenefitsLink Message Boards

Single Plan for Spouses with Separate Businesses?

"Husband owns his S corp, Wife owns her S corp. Business are not related (different fields). Can one DB plan cover both H&W? State NC. Just trying to keep the admin cost on a low side."

BenefitsLink Message Boards

1099-R Mega Backdoor Roth

"Solo 401k plan. Owner doing the mega backdoor Roth. Contributes $30,000 after-tax in 2023, converts $30,100 to a Roth IRA in 2023. The 1099-R would be as follows: box 1: $30,100.00 box 2a taxable: $100.00 box 5: $30,000.00 Box 7: G Does this look correct?"

BenefitsLink Message Boards

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

ERISA Fiduciary Duty Litigation: Recent Developments and Court Rulings, Strategies for Counsel

April 9, 2024 WEBINAR

Strafford

Last Issue's Most Popular Items

IRS Announces Extension of Pre-Examination Compliance Pilot Program

Proskauer

Shuttered Longtime Philadelphia Law Firm Sued Over Pension Plan

Reuters; free registration may be required

What the Proposal to End 401(k) Tax Breaks to Fund Social Security Gets Wrong

ThinkAdvisor

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

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