"Historically, the deadline for [a beneficiary to complete] the year-of-death RMD was December 31 of the year OF death.... In the IRS's final regulations, the deadline to take the year-of-death RMD is officially extended ... The new deadline is the later of [1] the tax filing deadline for the taxable year of the beneficiary that begins with or within the calendar year in which the individual died. and [2] the end of the following calendar year.' For most beneficiaries, this means the year-of-death deadline in now December 31 of the year AFTER the year of death."  MORE >>

"[V]ictims of domestic abuse can now withdraw funds from their retirement plans without incurring the usual early withdrawal penalty. To qualify, the withdrawal must be made within one year of the individual being victimized by domestic abuse from a spouse or domestic partner. [Notice 2024-55] elaborates on several key points: [1] Definition of domestic abuse victim distributions.... [2] Eligible retirement plans.... [3] Dollar limitation."  MORE >>

"Plan administrators may rely on participants' written certifications that they are eligible for an EPED or DAVD.... 401(k) plan sponsors can allow amounts attributable to elective, qualified nonelective, qualified matching, or safe harbor contributions to be included in the distribution.... direct rollovers need not be offered, Code Section 402(f) notices need not be provided, and no 20% mandatory income tax withholding is required from such distributions.... An applicable retirement plan must accept repayment of EPEDs or DAVDs from the participant within a 3-year period following receipt if [certain conditions] apply."  MORE >>

"The Eleventh Circuit's decision may generate renewed interest in the existing circuit split on whether there is burden-shifting on loss causation when a plaintiff establishes procedural imprudence and loss to the plan, and presents another opportunity for the Supreme Court to weigh in on the issue. Although in some ways procedural in nature, the burden-shifting issue has the ability to materially impact the outcome of ERISA fiduciary-breach claims at the summary judgment stage or at trial." [Pizarro v. Home Depot, No. 22-13643 (11th Cir. Aug. 2, 2024)]  MORE >>

"[S]kepticism about the ease with which these forfeiture cases might be easily dismissed was borne out first by the Qualcomm ruling and now by the Intuit court and their point-by-point resolutions of issues in favor of the plaintiffs. At the same time, the HP Inc., decision with its full consideration of the many issues raised in these cases and its robust ruling in favor of defendants demonstrates that plaintiffs also have a long way to go to succeed in these cases."  MORE >>

"[A]nalysis of nine 401(k) plans incorporates the facts that employees frequently leave firms (often before matching contributions from their employer have fully vested), a large percentage of 401(k) balances are withdrawn upon employment separation, and many employees opt out of auto-escalation. Steady-state saving rates increase by 0.6% of income due to automatic enrollment and 0.3% of income due to default auto-escalation. Only 40% of those with an auto-escalation default escalate on their first escalation date, and more opt out later."  MORE >>

"Cost savings were expected to be realized over the long term as members of the new benefit tier gradually phased into the active population. What may not have been as clear was the influence the changes would have on employee behavior and morale as well as the resulting broader impact."  MORE >>

"Combining the 12 plans reviewed, approximately 62% of public workers leave before vesting in their pension plan.... [P]ublic employees do not stay marginally longer in their roles to ensure they vest in their pensions.... Most new hires -- who leave before vesting -- will only get back their contributions upon leaving, but not the significant amounts contributed by their employers to their retirement plans."  MORE >>

"81% of sponsors are highly satisfied with their advisor, up from 63% in 2019 and 76% in 2023. Nearly 50% of surveyed sponsors report it being 'very important' advisors provide guidance on HSAs -- a 21% jump from 25% in 2023. 81% of plan sponsors said plan advisors should be allowed to work with employees outside their respective plan to support their broader financial planning needs."  MORE >>

"[PBGC] has approved the application submitted ... by the Retirement Benefit Plan of the Newspaper and Magazine Drivers, Chauffeurs and Handlers Union Local 473. The plan, based in Valley View, Ohio, covers 804 participants in the transportation industry ... [and] will receive approximately $31.6 million in special financial assistance ... The plan was projected to become insolvent and run out of money in 2034."  MORE >>