"The new PLESA guidance is welcome as employers and plan sponsors consider offering PLESAs under their Code Section 401(k) and 403(b) plans.... [A]additional guidance is still necessary.... Many third-party administrators and recordkeepers are not ready to operationally implement PLESAs ... as a result, plans cannot in practice adopt PLESAs.... [Q]uestions remain, such as whether plan sponsors are permitted to involuntarily cash small account balance PLESAs out upon participants' termination of service."  MORE >>

"The final amendments adopt the proposed amendments with modifications, including changes to the foreign convictions, prohibited misconduct, and transition period provisions. The final amendments are effective on June 17, 2024."  MORE >>

"Cerulli Associates ... anticipates a surge in 401(k) plans, projecting more than 900,000 by 2028, or roughly 230,000 more than there were in 2022.... Guideline ... is seeing sharp growth in first-time plans, signing up roughly 13,195 plans in 2023, more than double the 6,510 plans logged in 2020.... The uptick is welcome news for an industry that has long struggled to close the 'coverage gap,' a reference to the roughly 50% of private sector workers who do not have access to a workplace retirement savings plan."  MORE >>

"Ultimately, overestimating liquidity risk and the denominator effect can prevent pensions from fully optimizing their portfolio's return potential. This paper aims to help pension executives better understand how data can enable their effective use of [private investments]. It also discusses how new investment policy approaches may help to take advantage of market opportunities and minimize the risk of portfolio stress when down markets occur."  MORE >>

"Now that yields are higher, how much of a retiree's cash flow needs -- say, with a 4% spending rate -- could be satisfied by spending income and dividend distributions? And what are the pros and cons of spending that income versus reinvesting those distributions and using rebalancing to help supply cash flow needs?"  MORE >>

"Labor economist ... Kathryn Anne Edwards ... argued that 401(k) plans alone are failing to solve the retirement crisis in America and that the federal government needs to take a more active role in provide access to retirement savings.... Edwards argued the government should stop subsidizing 401(k) accounts (by making contributions tax-deductible), because she says it uses about 1% of the country's GDP (in potential, unrealized taxes) to benefit the retirement savings of the wealthiest 25% of Americans."  MORE >>

"Most people can set aside up to $23,000 in a 401(k) and $7,000 in an IRA in 2024 ($30,500 and $8,000, respectively, for adults 50-plus). But high earners may not be able to make tax-deductible IRA contributions if they have access to a 401(k) through their employer. They can make nondeductible contributions[.]"  MORE >>

"Because administrative flexibility will be crucial to the adoption and success of PLESAs, the Council appreciates the flexibility that was provided through Notice 2024-22 ... The Council remains concerned, however, that the potential for unnecessary regulation of PLESAs, beyond what is required by the statute, would undermine the ability of plan sponsors to provide PLESAs. Accordingly, the Council encourages the IRS to continue to offer this type of flexibility to plan sponsors in any additional PLESA-related guidance that is developed in the future."  MORE >>