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2 New Job Opportunities
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[Guidance Overview]
IRS Finalizes Pension Tax Withholding Rule
"IRS has finalized a regulation clarifying the tax withholding rules for retirement plan payments to recipients located outside
of the United States. Individuals residing in the US generally may elect no withholding under Internal Revenue Code Section 3405, but payments sent out of the country are subject to stricter rules. The regulation applies to payments made on or after Jan. 1, 2026[.]" MORE >>
Mercer
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[Sponsor]
Retirement at a Crossroads: Navigating Policy in a Changing Political Landscape During a Challenging Year for Tax Legislation
Join us November 19 for an enlightening discussion on critical retirement legislative issues in the wake of the 2024 presidential election. Preston Rutledge, expert on retirement policy and former Assistant Secretary of Labor for EBSA, will share his insights.
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Department of Education Regs Could Interfere with the Student Loan Match, Industry Warns
"Multiple industry leaders have warned the IRS that Department of Education (DOE) regulations may prevent student loan providers from sharing loan data with retirement plan recordkeepers. This would make it more difficult to verify that a loan is being paid off properly and
therefore more difficult to implement one of the more popular features of the SECURE 2.0 Act." MORE >>
Plan Sponsor Council of America [PSCA]
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Forfeiture Accounts Hold More Than Nonvested Employer Contributions
"[A] critical assumption underlying all of the forfeiture complaints and all of the court decisions ... to date [is] that forfeiture accounts hold only nonvested employer contributions and, therefore, the only issue that needs to be considered is whether nonvested employer
contributions may be used to fund employer contributions.... [T]he available Form 5500 information demonstrates that many forfeiture accounts contain not only nonvested employer contributions, but also other vested and distributed amounts, such as vested plan assets transferred conditionally from the accounts of missing or nonresponsive participants and uncashed checks." MORE >>
The Wagner Law Group
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Small and Midsize Employers Express Positive Experience Offering Pooled Plans
"59% of startups offering pooled plans reported they started offering the pooled plan to attract new employees. For those employers converting from another plan, the majority cited ease of administration as the reason for adopting the PEP." MORE >>
PLANSPONSOR; free registration may be required
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Plan Sponsors Show Rising Interest for Consultancy Services
"While 3(21) partnerships are nearly twice as common as those of 3(38) (55% vs. 27%), ... the gap is slightly closing, with a rising number of plan sponsors highly (6%) or partly (42%) considering working with a 3(38)-investment manager.... Top reasons as to why plan
sponsors are switching to a 3(38) investment manager include reduced workload for executives (59%), maximum investment liability transfer under [ERISA] (51%), and the 3(38) investment manager's ability to take immediate action for fund changes (50%)." MORE >>
401(k) Specialist
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PBGC 2025 'To-Do' List Includes Info Technology, Oversight, Says OIG
"The [PBGC] has work to do in a variety of areas, the Office of the Inspector General (OIG) says in a recent report ...
These include: [1] strengthening the PBGC's information technology; [2] oversight of contracts by contracting officers' representatives; [3] retaining mission-critical staff; and [4] procurement department functions." MORE >>
American Retirement Association [ARA]
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Competitive Pension Risk Transfer Costs Increase During September
"During September, the estimated cost to transfer retiree pension risk to an insurer in a competitive bidding process rose from 100.8% of a plan's accounting liabilities (accumulated benefit obligation, or ABO) to 101.7% of those liabilities.... [T]he average annuity purchase
cost ... also increased, from 104.1% to 104.4%." MORE >>
Milliman
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A Personal Finance 'Cookbook' for Busy 403(b) Plan Participants
"This post describes ten personal finance action steps that span a variety of financial planning topics including cash flow, saving/investing, insurance, income taxes, and estate planning. It addresses these topics through the lens of 403(b) plan participants, including common
benefits they receive and challenges (e.g., high expense vendors) that many face. It concludes with a summary of research about the power of structured financial action lists, three 'need to know' facts, and six take-away action steps." MORE >>
Barbara O'Neill, via 403bwise
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Benefits in General |
[Official Guidance]
Draft of Instructions for IRS Form 8868: Application for Extension of Time to File an Exempt Organization Return or Excise Taxes Related to Employee Benefit Plans (PDF)
Oct. 21, 2024 "What's New: Form 8868 was revised to include the extension of time to file Form 990-T, Exempt Organization Business Income Tax Return (and proxy tax under section 6033(e)) used for governmental entities. A properly completed Form 8868
submitted by the due date for Form 990-T will give you an automatic 6-month extension after the normal due date for Form 990-T. Governmental entities filing Form 990-T must use Return Code 15" MORE >>
Internal Revenue Service [IRS]
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Executive Compensation and Nonqualified Plans |
Double Taxation, IRS Audits of Deferred Compensation Payments May Arise from IRS Instructions for 2023 Forms W-2, 1040
"The new 2023 filing year instructions for box 11 of Form W-2 and for line 8t of Form 1040 Schedule 1 have been confusing many individual taxpayers, who are calling their employers to complain that Box 11 has been completed, which triggers the following problems: [1] Doubled current-year income taxes on amounts that were distributed (and reported in Box 1); [2] Potential
income taxes on amounts that have never been distributed (since the IRS's reporting instructions imply that the IRS considers deferred compensation 'other income'); [3] Potential audits of employees with Box 11 amounts who do not complete line 8t to Schedule 1 and
attach it to Form 1040" MORE >>
Morgan Lewis
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Employee Benefits Jobs
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Selected New Discussions |
DB Plan's SPD and Beneficiary Designation Form Contain Disqualifiers Not in Plan Document
"What becomes the 'controlling legal document(s)' in a case where a Defined Benefit Plan's actual 'Plan Document' does not detail, nor address, specific instances under which a Beneficiary Designation Form will be considered invalid that ARE DETAILED on
the Beneficiary Designation Form itself and/or the 'Plan's' Summary Plan Descriptions for many years?"
BenefitsLink Message Boards
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Overlap Between Last Payroll and Plan Termination Date - How to Process Deferrals?
"Employer is terminating 403b and profit sharing plan effective 10/31. Last payroll runs from 10/20 to 11/2. My understanding is that only compensation paid prior to plan termination can be used to calculate deferrals and employer matching. Payroll provider is telling me they
cannot split the last payroll check between 10/20-10/31 and 11/1-11/2. Is this a situation where we have to find a solution or is there another way? I thought maybe we could put language in the termination amendment that the last payroll to be included will be the payroll period ending 10/19, but its my understanding that because employees have elected to have deferrals withheld we have to withhold those deferrals until the plan is
terminated (10/31). Is there an exception to this rule (if I'm correct) for terminations?"
BenefitsLink Message Boards
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Correcting Typos on 8955-SSA
"Currently doing the follow up after surviving the 15th and just found a typo in a participant name on an 8955-SSA. Her social is correct. We have found no guidance and can't come to a consensus in the office on whether this needs an amended form or we just leave it till she
is filed as a D on next year's forms. opinions?"
BenefitsLink Message Boards
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Press Releases |
Top Performers Honored with 2024 Martin Rosenberg Academic Achievement Award at ASPPA Annual
ASPPA [American Society of Pension Professionals & Actuaries]
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Mayo Announced as Winner of Thomas J. Finnegan III Educator’s Award at ASPPA Annual
ASPPA [American Society of Pension Professionals & Actuaries]
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Bridgeway Benefit Technologies Forms Strategic Partnership with The Berwyn Group for Death Audit and Locate Solutions
Berwyn Group
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Pentegra Welcomes M. Palmer Whitney as Vice President, Head of
Client Relations
Pentegra
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2024 PenChecks Trust ASPPA Scholarship Winners Announced
ASPPA [American Society of Pension Professionals & Actuaries]
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Last Issue's Most Popular Items |
Overpayment Corrections: The Latest IRS Guidance
Ferenczy Benefits Law Center
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Higher Catch-Up Contributions Available for Certain Older Employees Starting in 2025
Slott Report
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IRS Provides Interim Guidance on Correction of Benefit Overpayments Under the SECURE 2.0 Act
Milliman
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BenefitsLink® Retirement Plans Newsletter, ISSN no. 1536-9587.
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