"It used to be that if you missed your required minimum distribution, the penalty was 50% of the amount you should have taken out but didn't. SECURE 2.0 lowered that penalty, but there's still a way where the IRS can go back to the other system and waive the whole penalty if you make up the back distributions and show a reason.... One way to avoid missing RMDs is by consolidating your IRAs."  MORE >>

"While this new benefit is limited, it still provides some relief from capital gains tax for S corporation owners, especially if immediate access to the cash proceeds from the ESOP are not a primary concern."  MORE >>

"The district court dismissed Plaintiffs' complaint, finding that the comparisons were not meaningful, and that Plaintiffs did not plead sufficient facts to show that the services provided by the various plans were indeed similar. In exercising plenary review of the district court's decision to dismiss the complaint, the Third Circuit determined that Plaintiffs established a meaningful benchmark to plausibly allege that the Plan fees were excessive." [Kruchten v. Ricoh USA, Inc., No. 23-1928 (3d Cir. July 24, 2024; unpub.)]  MORE >>

"The Fifth Circuit did not determine whether the ESG rule was properly promulgated, and hence the rule remains in effect.... The U.S. District Court for the Northern District of Texas will reconsider the case without any deference to the DOL's analysis. The decision will be based upon the plain language of ERISA, and both sides have recently argued before the Fifth Circuit that such language supports their respective positions."
[Utah v. Su, No. 23-11097 (5th Cir. Jul. 18, 2024)]  MORE >>

"Judge Jeremy D. Kernodle heard oral arguments [July 23] and questioned attorneys for both sides on the possibility of an injunction for a specific segment of the industry: insurance agents."
[FACC. v. DOL, No. 24-0163 (E.D. Tex. motion for stay filed May 21, 2024; DOL opposition to motion for injunction filed Jun. 14, 2024)]  MORE >>

"Loper Bright will have far-reaching implications for how courts interpret agency regulations going forward, not least in the ERISA context. It is already possible to see this playing out in three burgeoning areas of ERISA litigation -- a major litigation challenging the [DOL's] 2022 'ESG' rule ... several recent lawsuits challenging pension risk transfers (PRTs); and 2024 litigation regarding the DOL's 2024 Investment Advice Fiduciary Rule."  MORE >>

"[I]nflation and stock market volatility continue to be perceived as the biggest obstacles to saving for a comfortable retirement, though workers are slightly less concerned about both factors in 2024. ... [W]orkers still think they need to save $1.8 million for retirement, the same as last year, and on average, they expect their nest egg to last 23 years after retiring at age 65."  MORE >>

30 pages. "More participants are researching financial budgeting and planning decisions on their own without professional guidance. A growing number -- 39% up from 27% in 2021 -- lack basic emergency savings.... Three out of four participants want guidance from a professional for investment decisions. Only around half get guidance from financial advisors on their 401(k) accounts, notably down from 2021.... Six out of 10 participants say they are not saving enough to achieve a financially secure retirement."  MORE >>

"89 percent of military households with incomes of $75,000 or more are confident that they will have enough money to live comfortably throughout their retirement compared with 81 percent of their non-military counterparts.... [M]ilitary households are more likely than non-military households to say they use non-profit organizations that focus on serving a specific group or community as a source of information, while non-military households are more likely to say that family and friends are a source of information."  MORE >>

20 pages. "87 percent of Americans agree that Social Security should remain a priority for the nation no matter the state of budget deficits.... Among those who are not retired, most provided accurate responses about when they can start claiming Social Security income and the full retirement age.... When it comes to expanding Social Security, slightly more than half of Americans (52 percent) agree with this concept. Some 47 percent disagree with raising the retirement age, which is a benefit cut.... Eighty-seven percent say Congress should act now rather than waiting another ten years to find a solution."  MORE >>

"Congress has ... responded [to the Loper Bright decision] by exercising its oversight powers as members and committees begin to assert themselves.... The House Appropriations Committee has reported FY 2025 appropriation bills with restrictive legislative language concerning current and proposed regulations."  MORE >>

"[There now] exists a judicial divide over the constitutionality of the FTC's final rule ... Appeals to the Fifth and Third Circuit Courts of Appeals, respectively, are likely to follow in short order, with the rule's ultimate fate likely destined to be decided by the U.S. Supreme Court. In the meantime, employers should continue to build out compliance strategy plans in the event the non-compete ban does end up taking effect[.]"
[ATS Tree Services, LLC v. FTC, No. 24-1743 (E.D. Penn. Jul. 23, 2024); Ryan LLC v. FTC, No. 24-0986 (N.D. Tex. Jul. 3, 2024; motion for reconsideration denied Jul. 11, 2024)]  MORE >>

"In the aftermath of the court's decision in ATS, the noncompete ban remains scheduled to take effect on September 4, 2024, as to all covered employers other than the named plaintiff and plaintiff-intervenors in the Ryan lawsuit.... The Ryan court has indicated it will rule on the parties' motions for summary judgment by no later than August 30, 2024. Unfortunately, that date (the Friday before Labor Day) provides little comfort for all other covered employers, given that the noncompete ban is set to take effect the following Wednesday, September 4, 2024."
[ATS Tree Services, LLC v. FTC, No. 24-1743 (E.D. Penn. Jul. 23, 2024); Ryan LLC v. FTC, No. 24-0986 (N.D. Tex. Jul. 3, 2024; motion for reconsideration denied Jul. 11, 2024)]  MORE >>

"[A]dverse environmental regulatory shocks typically prompt corporate boards to reduce the risk-taking incentives of CEO compensation. However, this pattern is not uniform. Financially distressed firms exhibit milder reductions in compensation convexity, with some even increasing it, suggesting a 'gambling for resurrection' strategy."  MORE >>

"[This article] covers why executive comp is more complex than employee comp, its key elements, and what to consider before designing your plan.... For executives, the market is more specific and individualized.... You need to consider an individual's experience, along with your company's industry, size and stage, and various financial metrics. Rather than dollar amounts, base pay for executives is based on percentiles within a range that considers all these factors."  MORE >>