"The guidance set forth in Notice 2024-73 applies to plan years beginning after December 31, 2024 ... [T]he final regulations for LTPT employees in 401(k) plans (which have not yet been issued) will apply no earlier than plan years beginning on or after January 1, 2026.... Treasury and IRS have requested comments by December 20, 2024 on the Notice, including on [1] the application of nondiscrimination testing rules for LTPT employees in 403(b) plans; and [2] any LTPT rules that should apply differently between 401(k) and 403(b) plans."  MORE >>

"Regarding student employees, the Notice explains that this statutory exclusion under Code Section 403(b)(12)(A) continues to be valid because it is based on a classification of employees -- students performing services described in Code Section 3121(b)(10) -- rather than on service or work schedules.... Notice 2024-73 applies for plan years beginning after December 31, 2024[.]"  MORE >>

"For those subject to the 10-year rule, spreading the distributions equally over 10 years or targeting low-income years with larger withdrawals may result in substantial tax savings compared to withdrawing the entire balance at the end of the 10th year.... For those with multiple, unequal sized IRAs, with different beneficiaries, satisfying RMDs earlier in the year may help to avoid uncomfortable circumstances should you pass during the year."  MORE >>

"A plan with a QSLP matching contribution can choose to test all employees together or separately test employees who receive a QSLP matching contribution for actual deferral percentage (ADP) testing purposes. With respect to safe harbor plans, a QSLP matching contribution may be added as a mid-year change."  MORE >>

"Although the QSLOB rules offer much-needed relief to employers with diverse businesses, the availability of these rules is dependent on compliance with a series of highly complex and technical requirements and, therefore, should not be undertaken without a careful and thorough analysis The consequences of noncompliance can be severe, as the ability to utilize the QSLOB rules generally is dependent on every line of business satisfying those rules."  MORE >>

"[The Second Circuit joined] the Third, Seventh, and Tenth Circuits in requiring plaintiffs raising a prohibited transaction claim to allege something more than the mere existence of a transaction between a plan and a service provider. In contrast, the Eighth and Ninth Circuits have held that plaintiffs need only allege that a transaction took place and need not allege that the transaction was for more than reasonable compensation. By granting the plaintiffs' petition for writ of certiorari, the Supreme Court has signaled its readiness to resolve this circuit split." [Cunningham v. Cornell Univ., No. 21-0088 (2d Cir. Nov. 14, 2023; cert. pet. granted Oct. 3, 2024)]  MORE >>

"Additional independent data sources are used -- not just the typical credit reporting agencies, commercial databases and internet searches.... Understand what data points specifically the locator service is updating.... Upon project completion, you are given detailed reporting. Not just a file.... The service aligns with many of the DOL's best practices for finding missing participants.... The service provider makes it easy and has cybersecurity measures in place."  MORE >>

"Some of the thorny issues ... include: [1] Acquired employees were not timely enrolled for 401(k) deferrals.... This can be even more complex if an acquirer's plan features automatic enrollment. [2] Prior service was not counted for eligibility or vesting.... [3] The target company's plan may have illiquid investments that cannot be immediately sold."  MORE >>

"The breach, which occurred in August, was disclosed in regulatory filings with the attorney generals of Maine, New Hampshire, and Massachusetts. According to its filing submitted to Maine's attorney general on [October 8], Fidelity stated that the breach took place between August 17 and August 19, when an unnamed third party gained access to the data through two customer accounts."  MORE >>

"After steep increases in the Fed funds rate in 2022 and resulting higher expected returns across most asset classes, many public plans now find that their expected return on their current asset-allocation mix exceeds that of the discount rate set by their actuary. As a result of this changed environment, will these two trends now reverse? In other words, will public plans begin to raise their discount rates? Or will they shift back to a more conservative posture?"  MORE >>

"Individuals and businesses in six counties that previously did not qualify for relief under either Hurricane Debby or Hurricane Helene will receive disaster tax relief beginning Oct. 5, 2024, and concluding on May 1, 2025. They are Broward, Indian River, Martin, Miami-Dade, Palm Beach and St. Lucie. In addition, individuals and businesses in 20 counties previously receiving relief under Debby, but not Helene will receive disaster tax relief under Hurricane Milton, from Aug. 1, 2024, thru May 1, 2025. They are Baker, Brevard, Clay, DeSoto, Duval, Flagler, Glades, Hardee, Hendry, Highlands, Lake, Nassau, Okeechobee, Orange, Osceola, Polk, Putnam, Seminole, St. Johns and Volusia counties. As a result, affected taxpayers in all of Florida now have until May 1, 2025, to file various federal individual and business tax returns and make tax payments"  MORE >>