Rev. Jun. 2024. "Use Form 4461 to apply for approval of standardized or nonstandardized pre-approved defined contribution plans.... Submit one copy of Form 4461 for each separate adoption agreement or for each single document plan."  MORE >>

Rev. Jun. 2024. "Use Form 4461-B to apply for approval of a plan submitted by a mass submitter on behalf of an adopting provider, which is based on a plan submitted by the mass submitter."  MORE >>

"[I]mplementing automatic enrollment is a significant administrative undertaking that requires immediate changes to existing procedures and then on-going diligence. While Congress and the IRS have attempted to reduce the severity of the consequences of limited and/or short-term automatic enrollment compliance failures, potentially costly employer funded corrective contributions loom for those who fail to satisfy these requirements."  MORE >>

"As we await the issuance of comprehensive proposed Code section 72(t) regulations, this guidance provides some helpful clarifications on these two new distribution features, which may trigger more recordkeepers and plans offering this relief. And even if not offered under the plan, taxpayers can take advantage of the relief on their tax return."  MORE >>

"[Notice 2024-55] addresses SECURE 2.0's penalty-free distributions for individuals who have emergency personal expenses or have experienced domestic abuse. Although much of the notice reiterates the law's provisions in a Q&A format, IRS has clarified a few items of interest to plan sponsors. The notice includes a request for comments by Oct. 7."  MORE >>

"[In] certain circumstances defined benefit plans cannot make lump sum distributions to highly compensated employees (HCEs), despite the option being available under the terms of the plan.... The rule ensures large lump sum distributions made to the top HCEs do not jeopardize the funding status of the plan and its ability to make benefit payments to other participants."  MORE >>

"With far-reaching implications -- likely including the [DOL]'s fiduciary rule -- the nation's highest court has set aside a long-standing judicial deference to federal regulators in interpreting the law. While the full implications will take time to emerge, it's almost certainly going to produce more litigation, and in the process less certainty for advisors, plan sponsors and recordkeepers trying to operate within those boundaries." [Loper Bright Enterprises, Inc. v. Raimondo, Sec. of Comm., No. 22-451 (S. Ct. Jun. 28, 2024)]   MORE >>

"61% of recordkeepers offer at least one annuity. 33% offer only one type of annuity; 28% offer two or more annuities. 39% do not offer any annuities. GLWB (guaranteed lifetime withdrawal benefit) is the most frequently offered, especially among recordkeepers offering only one annuity option."  MORE >>

"[PBGC] has approved the application submitted ... by the Kansas Construction Trades Open End Pension Trust Fund ... [which is] based in Topeka, Kansas [and] covers 8,145 participants in the construction industry. [The] Fund, which is in critical status, will receive approximately $43.1 million in special financial assistance[.]"  MORE >>

An unofficial monthly report of the Moody's Daily Long-term Corporate Bond Yield Averages and Moody's Daily Treasury Yield Averages (used as benchmarks by some corporate pension plans).  MORE >>

"The majority's frequent reference to [Skidmore v. Swift (1944)] and use of language from that decision suggests that, going forward, the Court expects lower courts to look to Skidmore to guide their consideration of an agency's preferred interpretation of an ambiguous statute. Skidmore gave its name to a much weaker form of deference that does not require courts to defer to agencies.... [T]he majority reasoned that statutory ambiguities do not call for policy expertise or draw judges into making policy -- they call for the exercise of legal judgment. This distinction exists because, the majority stressed, courts, not agencies, have expertise in interpreting statutes and have done so for centuries." [LSB811189 Jun. 28, 2024] [Loper Bright Enterprises, Inc. v. Raimondo, Sec. of Comm., No. 22-451 (S. Ct. Jun. 28, 2024)]  MORE >>

15 pages; rev. Jun. 25, 2024. "During the initial examination process, a review of relevant filings with the [SEC] and the taxpayer's internal documents is a good place to start. The review of these documents may assist in identifying individuals who may have received equity-based compensation."  MORE >>