"Audit Tips ... [1] Determine if the plan sponsor is a member of an affiliated service group or a controlled group of employers.... [2] Inspect the plan document(s) to determine the maximum elective deferrals participants can defer, including catch-up contributions. Inspect payroll and tax reporting records ... [3] Compare Forms W-2 with payroll records and account statements ... Inspect the Forms W-2 of related employers ... [4] After testing the 401(k) plan for IRC Sections 402(g) and 401(a)(30) compliance, ensure that any excesses were properly and timely corrected by April 15th of the following calendar year. [5] Inspect Forms 1099-R for distributions and cancelled checks to determine when the distributions were actually made."  MORE >>

"The regulation specifically addresses withholding obligations for payments to [1] payees with a military or diplomatic post office address; [2] payees with a residence address located within the U.S.; [3] payees with a residence address located outside of the U.S. or who have not provided a residence address; and [4] foreign persons."  MORE >>

"[In] a matter of first impression, the Eleventh Circuit considered whether ERISA's fiduciary duties required the value of certain foreign tax credits received by John Hancock, an insurance company that provided investment and recordkeeping services to 401(k) retirement plans, to be passed through to the benefit of the plans. The Court determined that John Hancock was not an ERISA fiduciary with regard to the foreign tax credits and that the retirement plans are not entitled to the value of the foreign tax credits." [Romano v. John Hancock Life Ins. Co. (USA), No. 22-12366 (11th Cir. Oct. 30, 2024)]  MORE >>

"This is yet another Circuit-level decision in which an ERISA plan's arbitration clause was held unenforceable under the judicially-created 'effective vindication' doctrine.... [T]he Court invalidated the clause despite its expressly permitting arbitrators to award any remedy available under ERISA -- a feature of ERISA plan arbitration clauses that earlier decisions at least suggested could salvage such clauses." [Fleming v. Kellogg Co., No. 23-1966 (6th Cir. Oct. 21, 2024; unpub.)]  MORE >>

"The most fundamental role for an employer or plan sponsor regarding Roth conversions is, of course. to make them available.... Communications and information also are at the core of an employer's role ... It may be necessary to update plan documents so they reflect participants' ability to make Roth conversions ... TPAs and plan sponsors maintain records, prepare necessary documents, and ensure compliance with IRS rules and regulations."  MORE >>

"Pension funds must foster a collaborative environment -- both across internal departments and with industry peers -- to defend against growing cyberthreats, ... [P]ension funds are coordinating efforts across their legal, communications, information technology, benefit services and broader administration teams to determine how to best defend against cyberattacks."  MORE >>

"[As] ERISA fiduciaries, retirement plan sponsors are expected to use due diligence to vet providers, and that includes understanding how services are delegated and outsourced, which ... involves contracting wisely and asking the right questions:"  MORE >>

"Thousands of clients may be getting lost in the shuffle in the face of strong inorganic RIA growth -- an obscure problem until federal regulators gave Regal Investment Advisors the royal treatment, in part, for charging full fees and failing to disclose reduced service."  MORE >>

"For hybrid RIAs and broker/dealer representatives, about 68% reported they believe there should be a fiduciary standard for insurance brokers providing retirement investment recommendations; meanwhile, about 87% of fee-based advisers strongly agreed with the sentiment."  MORE >>