"Until a plan formally adopts these amendments, recordkeepers, plan sponsors, consultants, and advisors must diligently keep track of all elected discretionary and mandatory amendments, along with the effective dates, to ensure they are in compliance with relevant provisions. [A table] outlines the deadlines to formally adopt these required and discretionary amendments."  MORE >>

"The deadlines for converting an existing 401(k) plan to a standard safe harbor arrangement depends on the type of safe harbor contribution the plan sponsor selects. Employers may choose between implementing a safe harbor match or a safe harbor nonelective contribution[.]"  MORE >>

"A 10-year beneficiary who is subject to annual RMDs is one who inherited a retirement account after 2019 and [meets one of two criteria] ... These regulations confirm that the annual RMD requirement applies to these beneficiaries. Further, the 10-year deadline is not extended. Therefore, a 10-year beneficiary who inherited a retirement account in 2020, for instance, must ensure that the account is fully distributed no later than 2030, whether or not they took RMDs for the waived years."  MORE >>

"The definition of investment advice in the regulation ... includes life insurance with an investment component and annuities. Under both PTE 84-24 and PTE 2020-02, a compliant rollover recommendation generally requires the consideration of the investments, services and expenses in the retirement plan. As a result, the question has been raised about whether an insurance-licensed only insurance agent can legally 'consider' a plan's investments, as is required by the PTEs."  MORE >>

"[W]ith Chevron ruling the roost for several decades, many have become accustomed to it. Without it, things are expected to change. Exactly how, and precisely what that means for the retirement industry, nobody can be sure.... The most likely outcome is the status quo will remain. What's in the books probably won't change too much. What's not in the books, well, that's a different story."  MORE >>

"When exiting a PEO plan, plan sponsors should review the service agreements carefully. If the PEO provides HR and payroll services in addition to retirement services, it can cause unexpected outcomes.... Plan sponsors are often surprised to learn that new deferral elections, investment elections, and beneficiary designations will need to be obtained from all the participants in the plan.... Employee communication is key in making this a smooth process."  MORE >>

"The benefits of self-correcting the error are the plan sponsor avoids the time to prepare the application or potential professional fees for the preparation of the VFCP application. Additionally, self-correction does not require participant notification.... By voluntarily correcting late deposits through the VFCP, employers can mitigate the risk of facing DOL enforcement actions, penalties, and fines."  MORE >>

"When services such as consultancy, recordkeeping, or investment management are 'bundled' with providers with whom the company has other business dealings, the risks of perceived or actual conflicts of interest increase dramatically."  MORE >>

"In the 500 stochastic projection scenarios conducted for the report, 61% indicated the [multiemployer] program will remain solvent for more than 40 years, up from 60% of scenarios run last year.... The biggest contributor to the program's recent financial recovery is the special financial assistance (SFA) program ... The net financial position of the [single-employer] program over the next 10 years is expected to remain positive in all scenarios and is projected to grow to a median funded position of $70.6 billion by FY 2033, up from $62.5 billion last year."  MORE >>

"Most states require teachers to pay between 5% and 12% of their pay, with the employer paying what remains to cover the benefit and whatever debt payments are needed to eliminate unfunded liabilities. Since most state-run pensions operate with significant pension debt -- aggregate state pension debt is estimated to be $1.3 trillion -- nearly all employer rates greatly exceed the contribution amounts teachers are paying." [A chart shows teacher contribution rate and funded ration for each state.]  MORE >>

"The trustees made changes to the intermediate assumptions in three primary areas ... [1] [T]he trustees have revised the ultimate [total fertility rate (TFR)] from 2.0 in the 2023 Trustees Report to 1.9 children per woman reached in 2040 in the 2024 Trustees Report.... [2] [T]he trustees have reduced the assumed ultimate disabled worker incidence rate from 4.8 to 4.5 per thousand exposed.... [3] Greater-than-anticipated economic growth results in a 2.5% bump in projected real wage increases, which in turn leads to additional projected payroll tax income for the Social Security system."  MORE >>

"[F]or years now the 401(k) has suffered the Shakesperean 'slings and arrows of outrageous fortune.' ... [In] recent weeks, those voices have become increasingly bold in their condemnations. There's no longer any pretense about their plans for the 401(k). Quite frankly, they plan to starve it to death -- to redirect those tax deferrals to other projects, and not as deferrals, but as outright taxpayer-funded 'grants.' ... So, what can we do about all this? Here are some suggestions."  MORE >>

"[I]ndividuals and businesses in 67 Texas counties affected by Hurricane Beryl that began on July 5, 2024 ... now have until Feb. 3, 2025, to file various federal individual and business tax returns and make tax payments."  MORE >>

"Plaintiff submitted precedent from both the Supreme Court and the Fifth Circuit that a 'party-restricted' injunction would be improper and that the court must set aside the improper agency action 'with nationwide effect.' Plaintiff further argued that expanding the injunction nationwide would 'spare businesses the illegal burdens imposed by the rule,' promptly conclude litigation, and avoid 'a torrent of lawsuits' similar to the ones already pending before the courts." [Ryan LLC v. Federal Trade Commission, No. 24-0986 (N.D. Tex. Jul. 3, 2024; motion for reconsideration denied Jul. 11, 2024)]  MORE >>

"[T]he opinions are likely to increase the number of legal challenges to agency guidance on issues affecting health and retirement plans, with regulatory provisions more likely to be limited or overturned entirely. In addition, the opinions may affect how Congress drafts future legislation and how agencies approach rulemaking. The full impact will likely play out over an extended period of time while various legal challenges work their way through the courts."  MORE >>