Aug. 7, 2024. "Attach to Form 1040, 1040-SR, 1040-NR, or 1041.... If you only owe the additional 10% tax on the full amount of the early distributions, you may be able to report this tax directly on Schedule 2 (Form 1040), line 8, without filing Form 5329."  MORE >>

"The rules are effective for 2025 and later plan-year valuations, but IRS is providing transition relief for some sponsors using previously approved substitute mortality tables. IRS also has extended the deadline for some sponsors to apply to use plan-specific mortality for 2025."  MORE >>

"One of the preliminary questions that a U.S. Taxpayer must consider in determining how to report a foreign retirement plan -- and which tax forms to file -- is whether or not the retirement plan is considered an employment retirement plan or a personal retirement plan. The U.S. government generally provides better tax treatment for employment-based retirement plans such as a 401-K equivalent than it does for personal retirement plans where the foreigner invests in foreign mutual fund-wrapped 'personal' retirement plans."  MORE >>

16 pages. "Certain federal employees who perform specific duties, as defined in statute, are classified as law enforcement officers (LEOs) for the purpose of federal retirement benefits. LEOs and a few legislatively designated groups, including federal firefighters and air traffic controllers, are eligible for enhanced retirement benefits ... Many employees in law enforcement occupations are not recognized as LEOs by their agencies and the Office of Personnel Management for the purposes of federal retirement coverage and, consequently, are not eligible to receive enhanced retirement benefits" [R42631, updated Aug. 8, 2024]  MORE >>

"Provisions in the new RMD regulations could let clients move some cash from one QLAC to another.... [S]ome cover QLAC basics, and some are starting to get at the kinds of currently obscure QLAC features and limitations that may eventually spawn litigation, legislation, compliance webinars, and product and plan design creativity."  MORE >>

"With two recent court decisions putting a halt to the [DOL's] final investment advice fiduciary rule, the Department is currently holding internal discussions to determine next steps [said Ali Khawar, EBSA Principal Deputy Assistant Secretary] ... Khawar explained that retirement plan leakage is a major issue the DOL is looking at from several different aspects.... [and] noted that the DOL is considering guidance on emergency savings under the SECURE 2.0 Act ... Khawar also noted that changes to the voluntary fiduciary correction program are close to being finished, and they hope to have that out in the next few months."  MORE >>

"Should defined-contribution plans offer exposure to private equity? Some investment advisors are now adding the asset class to the target-date strategies offered in their defined-contribution plans -- including alternatives such as private equity, private real estate, and more."  MORE >>

"The choice between plan types has become a less monumental one, given how comparable the plans have become.... A few differences remain between 403(b) plans and 401(k) plans. These include an extra catch-up contribution for long-term 403(b) plan participants nearing retirement and the requirement for 401(k) plans to conduct -- and pass -- actual deferral percentage testing."  MORE >>

"The overarching goal is to provide a retirement savings option for small business employees who otherwise would not have access to such plans. As states start to adopt these Auto-IRA programs, an increase in new employer-sponsored retirement plans has occurred as employers take steps to move forward with their own retirement plans."  MORE >>

"The nominee to head the federal government's private pension insurer stands to lead an agency that is flush with cash, but first she must confront criticism of its work, including scrutiny of a mistaken overpayment of bailout funds to a Teamsters' plan. Deva Kyle has an insider's view of the [PBGC], as a former agency employee for 13 years who has also held government roles at the Treasury Department and the House of Representatives."  MORE >>

"Under federal law, any Social Security benefits you earned will be reduced if you were a federal, state or local government employee who earned a pension on wages that Social Security did not cover. Reductions also apply to Social Security spousal or survivor benefits claimed by government pensioners."  MORE >>

"The Senate version would appropriate $13.8 billion in total for the DOL, just shy of the $13.9 billion that Acting Secretary of Labor Julie Su requested in April. The Employee Benefits Security Administration (EBSA) would receive $206.1 million of that total, an increase from its 2024 budget of $191.1 million. Su had requested $205.7 million. The House version would provide $10.5 billion to the DOL and $181.1 million to EBSA."  MORE >>

"Employers should remain mindful that the notice requirement does not apply to the Rule's enumerated exceptions. That is, employers do not need to deliver notice to workers [1] who are considered highly compensated senior executives (as defined in the Rule) with existing noncompetes or [2] entered into a noncompete pursuant to the bona-fide sale of a business. Employers likewise do not need to deliver notice to a worker in a situation where causes of action related to an existing noncompete accrued before the final rule."  MORE >>