Sep. 25, 2024. "What's New: [1] Distributions to victims of domestic abuse.... [2] Distributions for emergency personal expenses."  MORE >>

"The RFI, which includes 29 questions across various topics, such as eligibility criteria, fund designation, and recovery tax for early distributions, is designed to gather feedback from stakeholders, including plan sponsors, tax preparers, and organizations serving lower-income individuals. Comments are due by Nov. 4, 2024."  MORE >>

"Although employers are not required to offer catch-up contributions, if they do, all catch-up eligible participants must be provided the opportunity to make such contributions.... If an employer wants to continue to apply the age 50 catch-up limit for all participants, and not implement the increased catch-up under SECURE 2.0, it should confirm with its plan service provider that such an option is available, particularly if the plan uses the service provider's preapproved plan document."  MORE >>

"The Thermo Fisher decision rationally describes why, for plans that allow forfeitures to be used for multiple purposes, employers should not be penalized in litigation for following the preexisting regulatory authority and commonly accepted, longstanding practices of 401(k) plan sponsors and fiduciaries." [Dimou v. Thermo Fisher Scientific, No. 23-1732 (S.D. Calif. Sep. 19, 2024)]  MORE >>

"[1] Will employer and participant costs actually wind up being lower? ... [2] How are employer administrative and fiduciary duties reduced? ... [3] Is an employer protected from liability caused by the MEP/PEP provider? ... [4] Does the 'one size fits all' MEP/PEP model best serve plan needs? ... [5] Who has to be covered when an employer joins a MEP or PEP? ... [6] How can an employer ensure that there is appropriate plan cybersecurity protection? ... [7] How will compliance issues impact joining a MEP/PEP? ... [8] What about exiting the MEP or PEP?"  MORE >>

"Each section of the Guide takes 401(k) and 403(b) plan sponsors through the steps of how PEPs work and whether they are an appropriate approach for an employer; how to evaluate pooled plan providers; best practices for implementation and monitoring; and reviewing plan design and investment menus that can help meet the retirement needs of their participants. Alongside visual and practical guidance, Aon provides insights into its PEP model and shares its perspective as a pooled plan provider, or PPP, on how employers offering 401(k) and 403(b) benefits can successfully adopt and monitor PEPs."  MORE >>

"Life insurers fear that any change in the [DOL's] stance could have a chilling effect on the PRT market.... Pension advocacy groups opt for greater regulatory clarity to protect the safety of pension obligations.... Many in the retirement and insurance communities are wary of significant changes to the existing framework, as PRTs have become a common mechanism for defined benefit plans."  MORE >>

"[The Empowering Main Street in America Act of 2024 (S 5139)] is one of several pending measures that aim to allow 403(b) plans to invest using the cheaper investment vehicle."  MORE >>

"Earlier this year, the Governmental Accounting Standards Board (GASB) completed an extensive post-implementation review (PIR) of the pension standards issued in 2012, Statement No. 67, Financial Reporting for Pension Plans, and Statement No. 68, Accounting and Financial Reporting for Pensions. NCPERS spoke with the GASB team about the review and the report issued at its conclusion earlier this year."  MORE >>

"A backdoor Roth IRA contribution is accomplished by making a regular contribution to a traditional IRA and then converting the amount (or a portion of it) to a Roth IRA.... The conversion step has no deadline. However, it should be done immediately after the contribution to ensure that the contribution's gains accrue in the Roth IRA where it could eventually become tax-free."  MORE >>

"[1] Take advantage of catch-up contributions ... [2] Delay retirement ... [3] Review and adjust your budget ... [4] Reevaluate your investment strategy ... [5] Reduce debt ... [6] Consider downsizing ... [7] Delay Social Security benefit ... [8] Consider health care and long-term care costs ... [9] Seek professional financial advice ... [10] Stay positive and consistent."  MORE >>

13 pages. "The Applicability Date should be delayed.... Plans should have flexibility as to spouses already receiving RMDs.... Election rule should not depend on whether participant died before the RBD.... Final regulations should clarify the treatment of a new spouse of the spouse.... Clarify implications of a Roth conversion after RMDs begin.... Provide reasonable rules for alternate payees with designated Roth accounts.... Clarify that QPDAs, in-plan annuities, and purchase of DB annuities are eligible.... Allow plan to rely on information from participant or insurer."  MORE >>

"The per diem rules can greatly simplify the process of substantiating business travel expense amounts. If the amount of an allowance is deemed substantiated because it does not exceed the applicable limit, any unspent amounts do not have to be taxed or returned. If an employer pays per diem allowances that exceed what is deemed substantiated, however, the employer must either treat the excess as taxable wages or require actual substantiation. If substantiation is required, any unsubstantiated portion of the allowance must be returned or treated as taxable wages."  MORE >>

"[1] Put a written plan in place and make sure it's compliant with [ERISA] ... [2] Ensure all summary plan descriptions (SPDs) are updated ... [3] Reconcile SPDs with your governing plan documents to eliminate conflicts ... [4] Look over plan eligibility requirements ... [5] Fully document any changes to the plan ... [6] Audit contributions ... [7] Make certain your 401(k) contributions are deposited quickly ... [8] Ensure pretax payments are made within a Section 125 plan ... [9] Audit your COBRA plans."  MORE >>