52 pages, Mar. 7, 2024. "What's New: Distributions to victims of domestic abuse.... Reminders: [1] The direct payment requirement for certain distributions for payment of health or long-term care insurance repealed.... [2] Form 8915-F replaces Form 8915-E. "  MORE >>

44 pages; Mar. 7, 2024. "What's New: [1] Compensation ... Elective deferral ... Defined contribution ... Defined benefit ... SIMPLE plan salary reduction contribution ... [and] Catch-up contribution limits for 2023 and 2024 ... [2] Required minimum distributions (RMDs).... [3] Plans established after end of taxable year.... [4] Increased small employer pension plan startup cost credit.... [5] Employer contributions credit.... [6] Small employer military spouse participation credit.... [7] Designated Roth nonelective contributions and designated Roth matching contributions."  MORE >>

"The second quarter 2024 interest assumptions will be 5.50 percent for the first 20 years following the valuation date and 4.83 percent thereafter. In comparison with the interest assumptions in effect for the first quarter of 2024, these interest assumptions represent no change in the select period (the period during which the select rate (the initial rate) applies), an increase of 0.05 percent in the select rate, and a decrease of 0.39 percent in the ultimate rate (the final rate)."  MORE >>

"In a little over 2 months, the DOL finalized its proposed fiduciary rules ... That 2-month turnaround is very fast as compared to the usual time frames ... The OMB has up to 90 days to review rules, but this suggests that its review could be done in 45 days, give a week or two. While we know that the final rule is at the OMB, we don't know what it says or how it changed from the proposals."  MORE >>

13 pages. "The purposes of this article are to [1] summarize the DOL's 1975 regulation and other guidance defining investment advice, [2] provide an overview of the Department's 2016 investment advice regulation, which was vacated by a federal appellate court, [3] explain changes to the Department's interpretation of its 1975 regulation in Prohibited Transaction Exemption 2020-02, and [4] discuss the 2023 Proposal."  MORE >>

"DOL's guidance takes the form of 20 wide-ranging FAQs posted on the agency's website covering multiple aspects of PLESA administration. IRS's guidance in Notice 2024-22 focuses on reasonable measures sponsors can take to limit employees' manipulation of the employer match on PLESA contributions. IRS is accepting written comments on its notice through April 5, and both agencies have indicated that more PLESA guidance is coming."  MORE >>

"[Notice 2024-22] is the first step into making these accounts viable, providing for allowable and prohibited restrictions for anti-abuse measures. But there remain a number of complexities and open issues to be addressed for these accounts that would benefit from simple, flexible rules, with a good faith implementation standard to bring these accounts into existence for 2024."  MORE >>

"[T]he Automatic IRA Act of 2024 [HR 7293] would effectively require most private-sector employers that don't already sponsor a retirement plan either to maintain an 'automatic contribution plan' or enroll employees in automatic individual retirement arrangements (IRAs) beginning in 2027. The bill would also direct the Treasury Department to provide guidance enabling automatic IRAs for independent contractors and gig workers."  MORE >>

"The proposal would impose special distribution rules on high-income taxpayers with large retirement account balances.... [P]lan administrators would be required to report to the Department of Treasury the vested account balance of any participant or beneficiary for whom the vested account balance exceeds $2.5 million (adjusted for inflation).... [The proposal would limit] rollovers and conversions to designated Roth accounts or to Roth IRAs.... The proposal would also extend the statute of limitations for the excise tax on prohibited transactions from three years to six years."  MORE >>

"It is important to note that the guidance offered by the DOL acts as a general rubric, containing default recommendations to help plan sponsors and participants better understand their joint responsibilities during these times of cyberpiracy and assault. No one should confine future actions exclusively to the guidelines, but rather go beyond the best practices contemplated by the DOL. These guidelines are in essence only a beginning, and not an end....Through the implementation of prudent actions, coupled with vigilance and training, plan sponsors can take the necessary steps to defray unwanted liability."  MORE >>

"While the goal for most companies that offer self-direction of investments to their participants is to avoid liability for the returns, that avoidance only happens if certain rules are met.... [H]aving a written set of practices and procedures ensures everyone involved in the administration of the plan is on the same page.... Turnover at a company is frequently where we see breakdowns happen in plan administration. Having a solid base of governance materials in place helps train replacements and avoids these breakdowns."  MORE >>

"This post describes ten 403(b) plan checkup and five additional financial planning checkup activities. It also summarizes research about the frequency of performance of financial management practices as well as three 'need to know' facts and six take-away action steps."  MORE >>

"3-in-4 feel confident about retiring when and how they want.... [P]ost-pandemic ... Americans are prioritizing financial stability. For those aiming to pursue their passions, traveling (57%) and hobbies (61%) top the list.... Since the pandemic took hold, its impacts remain far-reaching: remote and hybrid work are redefining what retirement means to many."  MORE >>

"The core conflict arises when portfolio managers vote security proxies in a manner dictated by prioritizing political interests rather than the beneficiary's best interest. Part of the American Airlines case includes this allegation." [Spence v. American Airlines, Inc., No. 23-0552 (N.D. Tex. February 21, 2024) ]  MORE >>

"This case reinforces four key points that animate most excess fee cases: [1] We must allow plan fiduciaries to correct the record at the pleading stage when a complaint is based on false fee amounts; [2] We cannot allow complaints to use misleading benchmarks from random plans instead of real context of the entire market of what all large plans pay; [3] It is unfair to allow plaintiff lawyers to regulate fiduciary liability unless they can show a clear lack of any fiduciary process.... and [4] Recordkeeping is not commoditized for all large plans." [Rodriguez v. Hy-vee, Inc., No. 22-0072 (S.D. Iowa Mar. 7, 2024)]  MORE >>