"This In Focus summarizes RMD rules and related recent legislation that affect original account owners of DC accounts and IRAs. This In Focus does not describe distribution rules for individuals who inherit DC accounts or IRAs." [IF12750 Aug. 29, 2024]  MORE >>

"The guidance ... addresses a number of key plan administration issues to assist plan sponsors that have implemented or intend to implement a QSLP matching contributions feature.... [1] What is a QSLP? ... [2] Design parameters for a QSLP matching contributions feature ... [3] Employee certification requirement ... [4] Administrative procedures for QSLP matching contributions ... [5] ADP nondiscrimination testing relief."  MORE >>

"The new SECURE 2.0 rule allows for a true match, avoids the nondiscrimination complexities raised with the PLR approach, and provides welcome relief for plan sponsors. The Notice goes far in addressing many administrative issues summarized below to get plan sponsors and recordkeepers started, but more guidance is coming with pending proposed regulations."  MORE >>

"The DOL might not be done modifying the Abandoned Plan Program, as in connection with extending the program to cover plans of entities in Chapter 7 bankruptcy, it requested comments on possibly extending the program to cover plans of entities in Chapter 11 bankruptcy or receivership under the FDIC or other applicable federal or state law. "  MORE >>

"The SPARK Institute recently hosted a pivotal SECURE 2.0 Implementation Workshop at Vanguard, bringing together payroll providers and retirement plan recordkeepers to tackle pressing issues related to the new Roth Catch-up rules and Super Catch-up provisions. This collaborative effort aims to ensure seamless integration and cross-industry coordination between retirement plan recordkeepers and payroll providers, addressing concerns that some employers might have about changes to their plans resulting from new SECURE 2.0 rules."  MORE >>

"One of the key benefits of aftertax 401(k) contributions is that they are allowable on top of the basic traditional or Roth contributions, making them ideal for heavy savers looking for additional opportunities for tax-advantaged savings. While aftertax contributions aren’t available to everyone with a 401(k), plans that do offer them are increasingly adding features that make it easy to convert those contributions to Roth without leaving the plan."  MORE >>

"[The GAO] found that fiduciary oversight of [IRAs] and other areas related to retirement investing ... are rife with conflicts of interest that should be addressed by the IRS, in some cases in coordination with the DOL.... [T]he GAO reported conflicts of interest in these areas: [1] Mutual funds that compensate sellers lead to lower average returns.... [2] Conflict-of-interest disclosures are unclear for end investors.... [3] Fiduciary oversight of IRAs from regulators is not strong enough."  MORE >>

24 pages. "DB plans now cover a much smaller portion of the workforce than 50 years ago, with an even smaller proportion of employees in these plans still accruing pension benefits.... [The] change from DB to DC shifts most of the risk related to retirement savings from the employer to the employee, which has resulted in a lower percentage of employees having access to secure lifetime income. This paper discusses ERISA's impact, focusing specifically on single-employer plans."  MORE >>

"In March 2023, 70 percent of workers in private industry had access to a retirement plan and 53 percent were participating in a plan.... In 2010, 20 percent of private industry workers had access to a defined benefit plan. By 2023, it dropped to 15 percent. Conversely, 59 percent of private industry workers had access to a defined contribution plan in 2010. By 2023, it grew to 67 percent."  MORE >>

"Millennials started their careers in weak labor markets, so initially they lagged behind Late Boomers and Gen Xers at the same ages in life events and wealth.... [D]ata for 2022 show a big reversal: Millennials had caught up on most indicators, and they surpassed earlier cohorts in wealth accumulation. The main reason was a huge runup in housing wealth, which soared during COVID, but gains in financial wealth also boosted balance sheets."  MORE >>

"3 in 4 employers say workers' financial stress negatively impacts operations ... 1 in 4 think more benefits can enhance a person's financial security ... 52% offer retirement match, up from 46% in 2023 ... 3 hours per week is how long American workers spend worrying about their personal finances at work ... 3 in 5 say they are living paycheck to paycheck. This sentiment is highest with Gen Z and Millennials ... 1 in 3 workers have used a financial planner in the last three years."  MORE >>

"[D]espite the current regulatory friction around held-away asset management, the most sensible path forward does involve some role for technology to manage clients' 401(k) accounts -- albeit with more communication between technology providers, financial institutions, regulators, and advisors to build a system that addresses the concerns of each."  MORE >>

"The most common changes to employee benefits include reduced paid time off (PTO)/vacation days (23%), decreased or removed stock options/equity grants (21%), and reduced or eliminated meal allowances (20%). Additionally, companies have reduced or stopped 401k matching (19%), employee wellness programs (19%), health care benefits (16%), and parental leave benefits (15%)."  MORE >>

"[A] target company's executives cannot always be confident that a future buyer will honor (or not dispute) the post-closing payment of severance and other deferred benefits.... [T]he most notable characteristic of a rabbi trust may be its inability to protect executives against the employer's bankruptcy or technical insolvency.... Severance protection can ... be invaluable for an executive if significant severance, deferred compensation, or supplemental retirement benefits are not scheduled to be paid coincidentally with the executive's termination of employment."  MORE >>