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Retirement Plans Newsletter

November 15, 2024

2 New Job Opportunities 2 New Job Opportunities

 

[Guidance Overview]

IRS Summarizes Tax Consequences of Excess Deferrals (PDF)

"The Issue Snapshot includes audit tips that reflect elements of reviewing a plan for excess deferrals, such as determining if the plan sponsor is a member of an affiliated service or a controlled group to determine if employees can participate in more than one plan. The IRS also recommends inspecting the plan document to determine the maximum elective deferrals participants can make, including catch-up contributions, and inspecting payroll and tax reporting records to ensure each participant complies with the annual deferral limit in effect for the year."  MORE >>

Thomson Reuters / EBIA

[Guidance Overview]

IRS Reminds Eligible IRA Owners About 2024 Charitable Donations

"The [IRS] reminds individual retirement arrangement (IRA) owners age 70½ and older that they can make up to $105,000 in tax-free charitable donations during 2024 through qualified charitable distributions. That's up from $100,000 in past years. For those age 73 or older, qualified charitable distributions (QCDs) also count toward the year's required minimum distribution (RMD)."  MORE >>

Internal Revenue Service [IRS]

Eleventh Circuit Rules Third Party Claims Unnecessary to Trigger Employee Benefits Liability Coverage

"In this instance, the court properly applied bedrock principles of policy interpretation to come to the right result -- the insuring agreement could be triggered without a third-party claim, particularly here where the 401(k) plan's qualified status was in jeopardy, which in turn made North American 'legally obligated' to make the corrective payments." [North American On-Site, LLC v. Zurich American Ins. Co., No. 22-12495 (11th Cir. Oct. 28, 2024)]  MORE >>

Hunton Andrews Kurth LLP

Yellow Corp. Shareholder Loses Bid to Quash Pension Claims

"A federal bankruptcy court ... denied a motion from Yellow Corp.'s largest shareholder, MFN Partners, to reconsider its ruling that the defunct less-than-truckload carrier is on the hook for claims from pension funds potentially totaling billions of dollars. The claims stem from Yellow's abrupt withdrawal from the multiemployer plans covering its former employees. Judge Craig Goldblatt's Tuesday opinion echoed the court's Sept. 13 ruling, which said [the PBGC] had the authority to set up guidelines to ensure a 2021 federal bailout package wouldn't be used to allow an employer to escape withdrawal liability." [In re Yellow Corp., No. 23-11069 (Bankr. Del. Sep. 13, 2024; reconsideration denied Nov. 12, 2024)]  MORE >>

FreightWaves

2024 Retirement Plan Judicial Update

"The arguments have evolved over the past three to five years from straightforward claims of excessive fees to allegations of specific gaps or failures in the decision-making process of the fiduciary committee. Lawsuits also challenge ancillary services offered to participants, such as managed accounts."  MORE >>

Multnomah Group

House Passes Bill to Repeal GPO, WEP; Fate in Senate Uncertain

"The House has passed a bill (HR 82) to repeal the Social Security government pension offset and windfall elimination provision, the farthest the repeal effort has advanced over the four decades since those provisions became law.... The bill now moves to the Senate, where its fate is uncertain. A counterpart bill (S 597) there has 62 cosponsors -- more than enough to overcome a potential filibuster -- but it is unclear whether that chamber will call a vote before the current Congress ends. If it doesn't the process would have to start anew in January."  MORE >>

FEDweek

[Opinion]

Starter 401(k) Plans: How Policymakers Can Increase Their Impact

"[1] Give businesses flexibility to change their plan type ... The language of SECURE 2.0 does not allow plan sponsors to change from a standard 401(k) plan to a Starter 401(k).... [2] Raise the annual Starter contribution limit."  MORE >>

Guideline

Benefits in General

[Opinion]

How Trump's Election Could Change Employee Benefits (PDF)

"[1] Tax cuts could affect benefits credits ... [2] End to fiduciary rule ... [3] ESG rule repeal ... [4] Preventive care policy shifts ... [5] Rollback of trans healthcare protections."  MORE >>

The Wagner Law Group, via Law360

Employee Benefits Jobs

View job as DB/DC Retirement Plan Administrator for CMC Pension Professionals

DB/DC Retirement Plan Administrator

CMC Pension Professionals

Remote

View job as DB/DC Retirement Plan Administrator for CMC Pension Professionals
View job as Process Improvement Manager for Alerus

Process Improvement Manager

Alerus

Remote

View job as Process Improvement Manager for Alerus

Selected New Discussions

Funding of Defined Benefit Plans

"May a business fund a defined benefit plan with any source of income? Specifically schedule E income?"

BenefitsLink Message Boards

Which Regs Might the Next President Put on Hold?

"Of the [DOL, Treasury, and PBGC] rules and regulations published as final on or after January 20, 2021, which of them -- even with an effective date before 2025 -- do not become applicable before January 20, 2025? (In a convention used by Republican and Democrat Presidents over the past 44 years, a newly inaugurated President's chief of staff directs executive agency heads to review rules that, even if final and effective, have not yet become applicable.) Has anyone yet written that list? If not, can you help us crowdsource which rulemakings won't be applicable before January 20, 2025?"

BenefitsLink Message Boards

Form 5500: Employer Transition from Non-ERISA to ERISA Midyear

"Employer was a governmental entity exempt from ERISA until 7/1/23 when its structure was changed to a non-governmental, non-profit entity. The employer has sponsored various welfare and retirement plans for years but we were not filing 5500s due to the governmental status of the employer. Now that the employer is subject to ERISA we are working on the 2023 Form 5500s (yes -- we know they are late). For the 2023 Form 5500s, do we need to indicate a short plan year from 7/1/23 to 12/31/23? By checking the box for a short plan year are we saying the plans did not come into existence until 7/1/23 or that the plans were not subject to ERISA reporting requirements until 7/1/23?"

BenefitsLink Message Boards

Press Releases

Pontera and Oppenheimer partner to empower holistic wealth management that incorporates clients' 401(k)s

Pontera

Nelu Diversified Solutions and Healthcare Benefits Alliance Launch the Ethical Benefits Consortium

Nelu Diversified Solutions

DOL Recovers $14k in Back Wages from Little Rock Hospital for Employee Illegally Fired While on Family Medical Leave

Wage and Hour Division [WHD], U.S. Department of Labor [DOL]

Webcasts and Conferences
(Retirement Plans / Executive Compensation)

Participant Loans: Technical Matters and Best Practices

RECORDED

ASPPA [American Society of Pension Professionals & Actuaries]

Replacing Your Paycheck in Retirement

RECORDED

Savant Wealth Management

Social Security & Life Income

November 21, 2024 in CA

Western Pension & Benefits Council - Orange County Chapter

2024 ERISA Litigation: What You Need to Know

December 5, 2024 WEBINAR

Faegre Drinker

Last Issue's Most Popular Items

Must-Knows About RMDs as 2024 Winds Down

Morningstar

Things to Worry About, Part 3: Correcting a Failure to Implement Automatic Enrollment

FredReish.com

IRS Introduces Official Section 83(b) Election Form

Stinson

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BenefitsLink® Retirement Plans Newsletter, ISSN no. 1536-9587.

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