"The final regulations signal the end of the transition relief. Plan sponsors have been put on notice that they must begin to administer RMDs to beneficiaries in compliance with the at least as rapidly rule. Special attention should be paid to monitor the deaths of any participant who is currently receiving annual payments subject to the IRS' RMD regulations, and to initiate distribution to their beneficiaries beginning in 2025."  MORE >>

"Schedule H is updated to include new categories in the 'Administrative Expenses' category of the Income and Expenses section. This section now provides a comprehensive breakdown of the plan's administrative costs, including recordkeeping expenses, actuarial fees, valuation fees, legal fees, and other related costs.... Schedule R ... has been expanded to add several new tax compliance questions, in Part VII, related to nondiscrimination testing, ADP testing, and pre-approved plan IRS determination letters."  MORE >>

"It is very common for U.S. Taxpayers who are considered U.S. Persons for tax purposes to have worked or been employed in a foreign country and accumulated foreign employment retirement/pension over their lifetime -- or possibly invested in a personal retirement fund in a foreign country as a way to supplement their retirement income. Foreign retirement schemes are treated much differently under U.S. tax law than their U.S. retirement plan counterparts."  MORE >>

"As New Jersey rolls out RetireReady, employers face new requirements and responsibilities.... [T]his comprehensive list of Frequently Asked Questions (FAQs) [is] designed to address common concerns and help businesses navigate the enrollment and administration process. Understanding these details will ensure a smooth transition as the program is rolled out across New Jersey."  MORE >>

"[W]hat if an IRA owner of multiple IRAs with different beneficiaries took a lifetime distribution from one of his IRAs, thereby partially satisfying his own final aggregated RMD before death? We must now look to his total aggregated final year-of-death RMD and apply the shortfall to each of his IRAs. The shortfall is spread across all IRAs proportionally based on the total prior year-end balance of each account."  MORE >>

"The Third Circuit Court found that in providing the withdrawal liability notice and demand twelve years after APD's cessation of contributions, the Fund failed to provide the notice and demand 'as soon as practicable.' ... [E]mployers should consider diligently analyzing the potential impact of significant events that could trigger multiemployer pension fund withdrawal liability.... Once identified, an employer might consider its strategy for disclosing (or not disclosing) the event and/or requesting that a pension fund furnish any required notice and demand[.]' [Allied Painting & Decorating, Inc. v. Int"l Painters & Allied Trades Indus. Pension Fund, 107, No. 23-1537 (3d Cir. Jul. 11, 2024)]  MORE >>

"Another excessive fee suit -- this one involving a $2 billion 403(b) plan -- casts a wide net of claims, including excessive fees, and the alleged misuse of forfeitures in applying them against the employer match.... [The plaintiffs note] that they 'did not have knowledge of all material facts (including, among other things, RKA cost comparisons to similarly-sized plans) ... until shortly before this suit was filed' ... an attempt to set the statute of limitations timing clock for the window in which to bring suit." [Ramseur et al v. LifePoint Health, Inc., No. 24-0994 (M.D. Tenn., complaint filed Aug. 15, 2024)]  MORE >>

"If the employer intends to use forfeitures to reduce employer contributions, then hard wire that procedure into the plan documents by providing that 'forfeitures shall be used to reduce the employer contributions' rather than 'may be used.' Take action to frame the decision regarding how to use forfeitures, as being a settlor decision by the employer rather than a fiduciary decision by the plan administrator.... Or consider amending the plan documents to require that 'forfeitures shall be used to reduce the employer contributions' rather than 'may be used.' "  MORE >>

"GAO found many conflicts associated with recommending one product over another in a review of over two thousand descriptions of conflicts of interest in required disclosures.... By law, the [IRS] has sole enforcement authority over firms and financial professionals acting as fiduciaries [for IRAs].... IRS officials said their practice regarding IRA fiduciaries is to enforce prohibited transactions that DOL refers to them. However, DOL does not have authority to audit IRAs for prohibited transactions and, therefore, is generally unable to refer IRA fiduciaries to IRS for excise tax enforcement.... GAO is making two recommendations to IRS, including that it develop and implement a proactive process to identify prohibited transactions between IRA fiduciaries and IRAs, and assess any associated excise tax." [GAO-24-104632 pub. Jul 29, 2024; rel. Aug 28, 2024]  MORE >>

96 pages. "People in the middle class have saved $8,000 (median) in emergency savings as of late 2023.... The top five greatest retirement fears among people in the middle class include outliving their savings and investments (40%), declining health that requires long-term care (40%), Social Security will be reduced or cease to exist in the future (39%), cognitive decline, dementia, Alzheimer's disease (33%), and possible long-term care costs (32%) ... Almost seven in 10 people in the middle class (69%) are confident that they will be able to fully retire with a comfortable lifestyle[.]"  MORE >>

25 pages. "The average 401(k) plan account balance for consistent participants rose each year from year-end 2016 through year-end 2021 before falling in 2022 alongside stock and bond market declines.... Younger 401(k) participants or those with smaller year-end 2016 balances experienced higher percent growth in account balances compared with older participants or those with larger year-end 2016 balances.... 401(k) participants tend to concentrate their accounts in equity securities."  MORE >>

"The trial decision is yet another example demonstrating how the current slate of excess fee and imprudent investment fiduciary-breach cases constitute improper second-guessing of the discretionary fiduciary decisions of America's plan sponsors. When required to prove their manufactured excess fee claims, plaintiff lawyers use junk expert testimony that attempts to distort the fiduciary standard of care from customary industry fiduciary practice into guaranteeing best possible results." [In re Prime Healthcare ERISA Litig., No. 20-1529 (C.D. Calif. Aug. 22, 2024)]  MORE >>

"[R]echaracterizing pre-tax contributions to Roth contributions via the payroll system that is, via Form W-2--will not be a good approach.... [V]ery often the need to recharacterize the contribution will be determined by the recordkeeper as part of testing, and recordkeepers are not set up to issue corrected Forms W-2¢. For this reason, and to reiterate a request we made in our October 2023 letter, is it is critical that the IRS provide guidance allowing plans to deal with recharacterization by issuing a Form 1099­R, similar to a Roth conversion. Such an option would be consistent with the IRS's guidance on section 604 of SECURE 2.0 (relating to employer contributions as Roth)."  MORE >>

"[I]ndividuals and businesses throughout the U.S. Virgin Islands affected by Tropical Storm Ernesto that began on Aug. 13, 2024 ... now have until Feb. 3, 2025, to file various federal individual and business tax returns and make tax payments.... [I]ndividuals and households that reside or have a business in any of the U.S. Virgin Islands' four islands qualify for tax relief."  MORE >>

"It is unclear how the end of Chevron deference will affect employee benefits legislative regulations long term; current litigation may give insight. [1] ESG ... [2] Section 1557 ... [3] Use of forfeitures  ... [4] DOL's final fiduciary rule ... [6] IRS Code Section 401(a)(9) RMDs."  MORE >>

"[We] are likely entering a period where big companies with big problems create highly leverageable opportunities with the right leaders. The standard pay-for-performance justification for above-market pay doesn't hold in this new world.... Investors will keep pushing for constraints on executive pay based on 'good governance' guidelines while bidding up the stock prices of companies challenging those guidelines to pay for the executives they want. Boards will be caught in the middle, dealing with difficult choices about how to make their investors 'happy.' "  MORE >>