Rev. Oct. 2024. "Form 4461-C is used to apply for approval of a standardized or nonstandardized 403(b) pre-approved plan.... Submit one copy of Form 4461-C for each separate adoption agreement or for each single document plan where no adoption agreement is used."  MORE >>

"[A chart] outlines those key provisions that are effective now, along with related considerations, both for required changes and those optional provisions that may be offered to plan members."  MORE >>

"SECURE 2.0 defines a 'new' plan as one established on or after its enactment date -- December 29, 2022. In effect, the law has two effective dates. The first is that the 401(k) or private sector 403(b) plan must have been established on or after December 29, 2022 and the second is that those plans are not required to begin automatically enrolling until January 1, 2025.... [P]lans established between December 29, 2022 and now may not realize that they need to start automatically enrolling their eligible employees on January 1, 2025."  MORE >>

"[IRS Notice 2024-02] clarified that if a non-grandfathered plan (meaning it is subject to the automatic features mandate in 2025) joins a MEP that includes grandfathered plans, then the joining plan remains non-grandfathered, but the grandfathered plans within the MEP are unaffected and continue to be shielded from the mandate.... However, the guidance did not explain what happens when a grandfathered plan joins a MEP that includes non-grandfathered plans or in cases where the MEP itself was created post-SECURE 2.0."  MORE >>

"The proposed settlement agreement calls for Citgo to increase plan benefits by $10 million, which would be spread among 1,743 members of the class. The agreement also calls for $4.75 million in attorney fees and expenses.... [A] number of defined benefit plans have been subjected to similar class action lawsuits related to the plan's actuarial assumptions, and the Citgo settlement is a noteworthy development for plan sponsors that are tracking those cases." [Urlaub v. Citgo Petroleum Corp., No. 21-4133 (N.D. Ill. settlement agreement filed Oct. 2, 2024)]   MORE >>

"Industry groups representing the nation's largest 401(k) plan sponsors are warning the IRS that federal loan servicers won't be able to share data with recordkeepers under the 2021 Stop Student Debt Relief Scams Act (Pub. L. No. 116-251). As a result, it may be up to employers to police the system and verify worker loan repayment claims, steering businesses away from an already optional plan add-on."  MORE >>

"Auto-enrollment, deferral, escalation and now portability -- it's the latest in the 'auto' revolution meant to make it as seamless as possible to help workers save.... The Portability Services Network (PSN) ... was created to address the issue. It promotes and executes auto-portability rollovers with no tax consequences when workers change jobs."  MORE >>

"There are countless iterations of service providers, plan formulas, payroll companies, investment philosophies, and internal control setups that must be considered when designing an audit plan. There are many audit considerations that are specific 403(b) plans that plan auditors must keep in mind when completing their audit steps. [This article describes] the main differences between a 401(k) audit and a 403(b) audit, starting with what types of employers can have a 403(b) plan, followed by other IQPA audit considerations."  MORE >>

"Record keepers are experiencing service issues as they struggle to maintain high quality with costs increasing. Advisors are forced to take on more service duties, which means hiring and training people ... Advisors and providers are moving to find additional revenue sources to fuel the convergence of wealth, retirement and benefits at work ... Less revenue to support advisors and providers from fund companies with the move to passive investments.... At the same time, plan sponsors are waking up."  MORE >>

"A strategy of systematic withdrawals from more liquid investments or cash savings combined with annuities outperforms other strategies for anyone retiring with $250,000 and more in savings ... The popular 4% rule is problematic ... [A]nnuities offer guaranteed lifetime income, safeguarding against market volatility and longevity risk. Those retiring with less than $250,000 most benefit by annuitizing higher portions of their savings, if not all."  MORE >>

"Social Security remains a critical component of most Americans' financial and retirement plans. Despite its longevity and familiarity, many individuals are unaware of all its relevant provisions and the related benefits and drawbacks.... [This article] answers 20 common questions about Social Security so that advisors are ready to advise taxpayers."  MORE >>

"Americans identified the greatest risks to their retirement income. Ranked in the top three risks to retirement income were: [1] Everyday costs increasing (42%); [2] Outliving money (35%); [3] Health care costs (32%); [4] Stock market dropping (31%); [5] Spending too much and running out of money (30%)."  MORE >>

"The ERISA Advisory Council is trying to get feedback on several ideas it is considering to address its study of the effectiveness of Qualified Default Investment Alternatives (QDIAs) in both the accumulation and decumulation phases of retirement. [The author] has been made aware of four potential draft recommendations [and] presented these ideas to experienced fiduciary professionals for their comments."  MORE >>

"SECURE Act 2.0 paved the way for more flexible benefits by allowing 401(k) contributions to match student loan payments. [A recent IRS Private Letter Ruling] is another big step forward that other organizations can learn from. And these are not the only options available -- there are more possibilities than ever for companies to deliver meaningful rewards that support employee financial wellness."  MORE >>

"Equity compensation, while valuable, does not provide immediate, tangible wages that can meet an employee's living expenses. Since stock or stock options may not be liquidated easily and can fluctuate in value, equity-based pay alone cannot substitute for salary or payment of a minimum wage."  MORE >>