Jul. 30, 2024. "Audit tips: [1] Determine if the plan permits catch-up contributions. [2] Determine if there is a plan-imposed limit on elective deferrals. [3] Review contributions made to the plan to determine if the limitations imposed by IRC Section 401(a)(30), IRC Section 415(c), and/or the plan's provisions have been exceeded by any participants. [4] Review the ADP test to determine the limit for HCEs. [5] If any of the 'applicable limits' have been exceeded, determine if the participants who made the additional elective deferrals are age 50 or older by the end of the calendar year. [6] Review payroll records to ensure the catch-up dollar limitation has not been exceeded."  MORE >>

"[W]hile IRS Employee Plans News refers to the 2023 taxable year, the IRS webpage refers to the 2024 taxable year.... Filings for 2024 taxable years will not be due until 2025, so it is not clear whether the webpage's 2024 taxable year reference is intentional or was meant to refer to the 2024 filing year."  MORE >>

"The final regulations apply for distribution calendar years beginning on or after January 1, 2025. However, as some of the RMD changes addressed in the final regulations already have taken effect ... plan sponsors should review current plan operations for compliance."  MORE >>

"[1] Pension-Linked Emergency Savings Accounts (PLESAs).... [2] Employer-provided student loan relief.... [3] Section 529 plan rollovers.... [4] Starter 401(k) plans.... [5] Top-heavy rules.... [6] SIMPLE IRAs.... [7] Early withdrawal exemptions.... [8] Required minimum distributions (RMDs)."  MORE >>

"Despite increasing availability of managed accounts, growth has been relatively stagnant in the last few years, as 77% of participants were also offered managed accounts in 2022, and only 7% of participants are actually using a managed account program ... Some firms have been more critical of managed accounts, largely because of the fees that are often attached to the personalized service."  MORE >>

"Two legal challenges ... have stalled the fiduciary rule from its September 23 effect ... Until both stays are resolved, retirement plan advisors will have to continue following the current fiduciary regulation come September, including the original five-part test and current prohibited transaction exemptions 84-24 and 2020-02[.]"  MORE >>

36 pages. "[This report] discusses the responsibilities of ERISA fiduciaries and the types of litigation that may be brought against them, as well as some practical suggestions on plan design and administration that may help reduce litigation risk. [It also] shares insights on how the role of fiduciary liability insurance and other forms of protection can mitigate against financial loss to plan sponsors and their fiduciaries when faced with a lawsuit."  MORE >>

"Sponsors of retirement plans operating in Puerto Rico, particularly in the wake of an Infosys security breach last November ... have undertaken to evaluate the cybersecurity practices of local service providers that have access to sensitive information of plan participants. Pursuant to their fiduciary duties under [ERISA], plan sponsors can and have negotiated to pay lower fees to those providers, such as Puerto Rico trustees, recordkeepers, and, to a lesser extent, paying agents.  MORE >>

130 pages. "The purpose of this proposed Guide is to demonstrate the modeling for the reporting by employee benefit plans. The examples are not intended to encompass all potential modeling configurations or to dictate the appearance and structure of an entity's extension taxonomy or its financial statements. The examples are provided to help users of the GAAP Taxonomy understand how the modeling for employee benefit plans is structured within the GAAP Taxonomy."  MORE >>

"[PBGC] has approved the application submitted ... by the Printing Local 72 Industry Pension Plan. The plan, based in Sparks, Maryland, covers 787 participants in the printing industry ... [and] will receive approximately $39.4 million in special financial assistance.... The plan was projected to become insolvent and run out of money in 2025."  MORE >>

"TIAA says its tool provides clients with 'objective recommendations that are suited for your investment needs.' But a whistleblower complaint filed with the [SEC] in June and shared with NBC News says TIAA stands to reap billions in new revenues when clients use the tool because it quietly steers them into two in-house TIAA investment products that yield the firm significant profits."  MORE >>

"Executive compensation mistakes ... [1] Giving away too much equity ... [2] Skipping comp benchmarking or using the wrong comp data ... [3] Not aligning with your compensation philosophy ... [4] Making too many exceptions ... Best practices ... [1] Communicate the potential value of equity ... [2] Regularly review and update your executive compensation plan ... [3] Use external advisors "  MORE >>