56 pages, rev. Nov. 2024. "What's New for Tax Year 2024: ... [1] Treasury Decision 9972 amended the rules for filing information returns electronically ... [2] Issuers/Transmitters are strongly recommended to keep a copy of FIRE System file status emails and the associated files of the information returns or be able to reconstruct the data for at least three years from the reporting due date with [certain] exceptions ... [3] The test system will only allow 125 test files per year. [4] Beginning January 1, 2025, you can file Form 5558 electronically through the DOL EFAST2 filing system or you can file paper Form 5558 with the IRS."  MORE >>

"Notice 2024-77 clarifies ... that certain provisions of EPCRS, including provisions that require corrective payments, no longer apply with respect to an inadvertent benefit overpayment. Notice 2024-77 also clarifies that plans may seek recoupment from overpayment recipients under EPCRS, but are not required to do so. However, Notice 2024-77 notably does not address the SECURE 2.0 changes under ERISA Section 206(h), which impose conditions on fiduciaries who seek recoupment of inadvertent benefit overpayments."  MORE >>

"[A]lthough long-term part-time employees will be allowed to make elective deferrals into 401(k) and 403(b) plans, management may choose whether to provide non-elective or matching contributions to such participants. These participants also may be excluded from nondiscrimination and top-heavy requirements. This requirement will create unique tracking challenges as plans will need to track hours worked for recurring part-time employees over multiple years."  MORE >>

"[One] question is whether a company with a 'new' 401(k) or private sector 403(b) plan must automatically enroll only the 'new' eligible employees or whether it must also enroll the 'old' eligible employees.... [Another question is] how does automatic enrollment affect LTPT employees. We don't know. The IRS hasn't issued any guidance. But if automatic enrollment applies, plan sponsors are just weeks from needing to be in compliance."  MORE >>

"There is very little interest in adding Pension-Linked Emergency Savings Accounts with 60 percent of respondents selecting 'Strong No' and an additional 13 percent responding 'Lean No,' for a total negative response rate of 73 percent. Similarly, a strong response against adding Emergency Personal Expense Distribution with a collective 65 percent of respondents selecting 'Strong No' or 'Lean No.' Student Loan Matching Contributions were not given a passing grade with a collective 56 percent of respondents selecting 'Strong No' or 'Lean No.' "  MORE >>

"Among the 58 percent who retired earlier than expected, the most common reasons for retiring were having a health problem or disability (38 percent) and changes at their company, such as downsizing, closure, or reorganization (23 percent).... Individual retirement accounts (IRAs) were noted as being a current income source for 20 percent of retirees, while 401(k)-like workplace retirement plans were an income source for 17 percent of retirees.... Given their economic circumstances during retirement, half of the retirees said they saved less than what was needed for retirement."  MORE >>

"The funded status of the 100 largest corporate defined benefit pension plans increased by $10 billion during October ... An increase in the benchmark corporate bond interest rates used to value pension liabilities led to a large drop in plan liabilities relative to plan asset losses during October. As of October 31, the funded ratio jumped to 103.4%, from 102.5% at the end of September, and the funded status surplus increased to $43 billion."  MORE >>

18 pages. "The RSAA proposal [HR 6065/S 3102] aims to expand retirement coverage for American workers by creating a federal retirement plan for those not covered through their employer.... [The authors] use the Morningstar Model of US Retirement Outcomes to conduct [this] analysis, building in the RSAA's features into the simulation.... In most plausible scenarios, the majority of working Americans would be better off with the status quo.... The RSAA would boost retirement outcomes for workers not covered by an employer-sponsored plan, but this benefit would be offset by larger decreases for those covered in the status quo."  MORE >>

2-page chart includes 2025 limits for qualified retirement plans, IRAs, PBGC, Social Security, and health and fringe benefit plans, along with corresponding limits for 2024 and 2023.  MORE >>

"When substantially nonvested property is transferred in connection with the performance of services, the person who performs the services may elect under IRC Section 83(b) to currently include in his or her gross income the excess (if any) of the property's fair market value at the time of the transfer over the amount (if any) paid for the property at the time of transfer, rather than when the property later becomes substantially vested. Refer to the Restricted Property section of Publication 525 for a description of the tax consequences of substantially nonvested property transferred in connection with the performance of services."  MORE >>

"There are various scenarios with equity compensation -- specifically restricted stock, stock options, and LLC interests -- in which making a timely Section 83(b) election with the IRS can be an important move for tax planning and minimization.... The welcome new Section 83(b) election form [IRS Form 15620] ... will be mailed to the IRS, but under the IRS modernization program it will eventually be submissible by e-filing."  MORE >>

"A federal judge reaffirmed his earlier decision that Morgan Stanley's deferred compensation plans fall under federal mandates ... The decision ... is the latest development in a years-long class action suit filed by an array of former Morgan Stanley advisors. The group accused the wirehouse of denying millions in deferred compensation when reps left for other firms." [Shafer v. Morgan Stanley, No. 20-11047 (S.D.N.Y. Nov. 5, 2024)]  MORE >>