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New Job Opportunity Today
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DOL Sends Final Fiduciary Rule to OMB
"On March 8, 2024, the [DOL] sent a final version of the Retirement Security Rule: Definition of an Investment Advice
Fiduciary (the 'Fiduciary Rule') to the Office of Management and Budget (OMB) for review. OMB review is typically the final stage of the regulatory process before the publication of a final rule and can take anywhere from a few days to several months. Assuming a normal review process, [the authors] expect the Fiduciary Rule to be released by the end of May. The text of the Fiduciary Rule will not be publicly available until it is
released by DOL or published in the Federal Register." MORE >>
Groom Law Group
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Washington State Poised to Adopt State-Sponsored Retirement Plan
"SB 6069 establishes Washington Saves, an automatic enrollment individual retirement savings account program. It requires
covered employers to allow employees an opportunity to contribute to an IRA through an automatic payroll deduction. The default contribution rate is to be not less than 3%, nor more than 7%, of wages.... Accounts are portable." MORE >>
American Retirement Association [ARA]
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House Advances Measure That Would Permit CITs in 403(b) Plans
"[The] Retirement Fairness for Charities and Educational Institutions Act ... would allow 403(b)
plans subject to [ERISA] and governmental plans to invest in CITs. SECURE 2.0 opened the door for 403(b) plans to use CITs through changes in tax-related provisions, but it was not implemented as the provisions did not include the necessary changes to the securities provisions." MORE >>
Multnomah Group
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Cybersecurity Threats to Retirement Plan Assets
"[R]etirement plans' unique business model creates multiple potential openings for breaches ... Participants' contributions and data often move through multiple organizations before reaching the financial institution serving as plan custodian.... Social engineers
targeting plan service reps and participants, particularly individual older participants with larger balances, are another exposure." MORE >>
planadviser
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Better Alternative(s): Private Investments May Improve Outcomes for Defined Contribution Plan Participants
"[This article] explains the historic role that PI allocations have had in generating strong returns for large investors with longer time horizons. Next, it lays out how target date funds (TDFs), which are professionally managed pools with long time horizons, can serve as the
vehicle to provide exposure to PI, while simplifying the plan participant experience.... Lastly, it touches on keys to successful implementation of a value-generating PI program within a TDF structure." MORE >>
Cambridge Associates
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What's the Process When a Trust (or Estate) Is IRA Beneficiary?
"When a trust or estate is the beneficiary of an IRA, there are special rules that must be followed. Things can get complicated quickly. Before haphazardly opening new inherited accounts and bouncing IRA money around, it is important to understand some basic concepts -- like
ownership structure, applicable payout rules and taxes." MORE >>
Slott Report
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Updated Actuarial Financial Planner Models
"[T]he AFP models [have been updated] to permit inputting of additional non-recurring income and expense items. These new cells will enable you to estimate present values of items such as: [1] Social Security survivor benefits; [2] Survivor benefits under Joint and
Survivor annuities; [3] Future home sales; [4] Possible future Social Security cuts, and [5] Many types of expected future non-recurring expenses." MORE >>
Ken Steiner, FSA Retired
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The NUA Transaction: How to Exit Your ROBS Plan Without a Cash Redemption
"A redemption may be prohibitively expensive when the plan owns a large percentage of the company ... Fortunately, ROBS owners who are at least 59½ years old have another choice ... Upon reaching age 59½, a ROBS owner may elect to receive a distribution of
their QES from the plan.... Like all plan distributions, this is taxable to the ROBS owner as an individual, at ordinary income tax rates. However, ... the owner may elect to be taxed only on the amount of their original QES purchase." MORE >>
KLB Benefits Law Group
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Employee Benefits Jobs
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Selected New Discussions |
Solo 401(k) with Mega Back Door Roth
"Normally in those situations we recommend establishing a separate subaccount for Roth money, and conversion is done by election with accompanying physical movement of funds into a separate Roth account within the same plan. Is there a problem with keeping all sources (both Roth
and non-Roth) within a signle account and the 'segregation' being done on the recordkeeping level only. I think it is OK but wanted to hear the wisdom of other practitioners. Are there any considerations I need to be thinking about?"
BenefitsLink Message Boards
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Short Sponsor Year and Full Plan Year
"Sole prop, started biz 7/30/2023, over age 50. Wants a 401k plan for 2023 (ok under SECURE 2.0) Made 125k of net c for 2023. Assume after SE tax adjustment I think I can make the plan effective 1/1/2023 and get the full 30k as deferral, correct? If I start the plan, do I need to
prorate the 30 to 5/12th? For PS I can do max 25k and is this doable with either full or short plan year?"
BenefitsLink Message Boards
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Options for Handling Excess Contribution
"[C]lient deposited $4,300 too much. They asked if they could allocate it as a PS contribution instead of returning it to the company. The plan is a straight SH Match, they don't make PS contributions (it's allowed, they just don't). Problem is, 5 participants who
don't defer would receive the PS contribution. No big deal. But the plan has individual brokerage accounts at American Funds. Each of these 5 participants would need an account of which their balance would range from $125 to $236. Hardly worth it..agree? - Could these 5 participants share one pooled account?
- Would it be best to just pay the overage back to the company?'
BenefitsLink Message Boards
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Press Releases |
Just Futures Launches Values-Driven 401(k)s and 403(b)s
Just Futures
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Webcasts and Conferences (Retirement Plans / Executive Compensation) |
Retirement Income Solutions: Guiding Plan Sponsors on the Path from Education to Implementation
March 21, 2024 WEBINAR
Broadridge
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Last Issue's Most Popular Items |
A Look at the Proposed Long-Term Part-Time Employee Regs
Hodgson Russ LLP
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Lessons from a Successful ERISA Defense Against Participant Challenge to Target-Date Fund Investments
McGuireWoods
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DOL Enforcement Actions Serve as Strong Reminder to Plans to Exercise Fiduciary Prudence
Haynes and Boone, LLP
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Copyright 2024 BenefitsLink.com, Inc. All materials contained in this newsletter are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of BenefitsLink.com, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.
BenefitsLink® Retirement Plans Newsletter, ISSN no. 1536-9587.
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