"[1] Most investors should be bracing themselves for higher RMDs in 2024. [2] Investors can use their RMDs to remove risk from their portfolios. [3] Investors that are 70.5 and older can use QCDs to reduce the tax burden of RMDs before they have to take them. [4] If an RMD is uncomfortably large for what someone would like to withdraw from their portfolio, they can reinvest elsewhere. [5] Even with recent changes under the SECURE Act, the penalties of missed RMDs underscore the value of not waiting until the last minute in the year to take that RMD."  MORE >>

"Withholding generally is required for payments made to payees with a residence address located within the U.S. if the payee provides payment instructions indicating that the funds are to be delivered outside of the U.S. Withholding generally is required for payments made to payees with a residence address located outside of the U.S. even if the payee requests that the funds be deposited with a financial institution located within the U.S.... The Regulations apply to payments and distributions made on or after January 1, 2026"  MORE >>

"[T]he eased corrections are only available where the plan sponsor failure to automatically enroll eligible employees is due to a reasonable administrative error. Unfortunately, SECURE 2.0 didn't define that term.... [W]hat about a failure due to not knowing that the law required automatic enrollment (for example, for a 401(k) plan that was set up on or after December 29, 2022)? Ordinarily, ignorance of the law is not a reasonable basis for failing to comply with a law."  MORE >>

"The Social Security Fairness Act of 2023 (HR 82) ... [and] S 597, a companion bill ... would repeal two provisions under Social Security -- the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP) -- for benefits payable after December 2023.... This Insight provides summary information on the GPO and WEP, including how each provision works, who is affected, arguments for or against these provisions, and relevant legislation in the 118th Congress[.]" [IN12451 Nov. 13, 2024]  MORE >>

"Start with a comprehensive review of the current legislative landscape.... Evaluate each provision based on your unique needs, considering your industry, employee population, and retirement program goals.... Collaborate closely with stakeholders, including your recordkeeper, to ensure accurate amendments to your plan document for the selected provisions.... The retirement plan advisor should coordinate with your recordkeeper, payroll provider, and third-party administrators to ensure a smooth rollout of the updates."  MORE >>

"To date, we count 25 forfeiture lawsuits filed in a variety of jurisdictions (11 in federal courts in California). Six decisions on motions to dismiss have been issued so far. Two motions were denied outright. One motion was granted without leave to refile. The remaining three motions were granted (including the latest in the Clorox matter discussed below), but with leave to plaintiffs to amend their complaints."  MORE >>

"New comparability plans ... allow an employer to allocate different profit-sharing contribution percentages to different groups of employees at the employer's discretion.... New comparability plans make sense for businesses that want to maximize employer contributions for older, higher-paid owners and key employees while providing a modest contribution for younger employees."  MORE >>

"While the nature of private-market investments, such as private equity, are aligned with the long horizons of many participants in principle, the cash flow flexibility with which the typical DC-plan sponsor is comfortable and that of a privatemarket fund manager are not naturally aligned. Additionally, the very nature of private markets with their high fees, limited liquidity, complicated cost structure, and often opaque reporting could prove a tough hurdle for plan sponsors even with the allure of increased diversification and potentially attractive returns."  MORE >>

"90 percent of all nonprofit employees are eligible to participate in plans, a survey high, and likely expanded due to SECURE Act provisions allowing long-term part-time employees to participate.... [N]early 70 percent of respondents added the optional provision in SECURE 2.0 to allow for a distribution in the event of a natural disaster, 60 percent added the provision for terminal illness, and 48.4 percent adopted the $1,000 emergency withdrawal provision."  MORE >>

"[T]he overwhelming majority of brokers and plan sponsors have no understanding of the methodology required to properly assess the prudence of annuities. More often than not, plan sponsors hear the mantra 'guaranteed income for life' and they believe any annuity is prudent."  MORE >>

"The [IRS] announced today tax relief for individuals and businesses located in Chaves County, New Mexico affected by severe storms and flooding that began on Oct. 19, 2024. These taxpayers now have until May 1, 2025, to file various federal individual and business tax returns and make tax payments.... [I]ndividuals and households that reside or have a business located in Chaves County, New Mexico qualify for tax relief."  MORE >>

"On November 7, 2024, the IRS introduced Form 15620, a new standardized form for taxpayers opting to make a Section 83(b) election. Previously, taxpayers needed to send a letter to the IRS with the required information to make the Section 83(b) election effective."  MORE >>