"This announcement provides that the [Treasury Department and the IRS] anticipate that certain portions of future final regulations relating to required minimum distributions (RMDs) under section 401(a)(9) of the Internal Revenue Code will apply no earlier than the 2026 distribution calendar year."  MORE >>

"The Federal Retirement Thrift Investment Board (FRTIB) proposes to permit the TSP record keeper to calculate gains and losses on late contributions, makeup contributions, loan payments even when the total amount on a late payment record or total agency contributions on a current payment record is less than $1.00."  MORE >>

"Purpose of form. Complete Form W-4P to have payers withhold the correct amount of federal income tax from your periodic pension, annuity (including commercial annuities), profit-sharing and stock bonus plan, or IRA payments.... Submit a separate Form W-4P for each pension, annuity, or other periodic payments you receive."  MORE >>

35 pages; for use in preparing 2024 returns. "What's New ... [1] Beginning with distributions made after December 31, 2023, a distri- bution to a domestic abuse victim is not subject to the 10% additional tax on early distributions if the distribution meets certain requirements.... [2] Distributions for certain emergency personal expenses made after December 31, 2023, are not subject to the 10% additional tax on early distributions if the distribution meets certain requirements."  MORE >>

"Starting in 2025, SECURE 2.0 sets a higher catch-up contribution limit of $11,250 for participants who turn ages 60 and 63 during the year ... The limit on small balance cashouts rose from $5,000 to $7,000 starting in 2024.... SECURE 2.0 reduces the tracking period for LTPT employees to two consecutive years and applies the law change to 403(b) plans too.... Plan amendments are not required until at least the end of 2026[.]"  MORE >>

"The court explained that in order to survive a motion to dismiss, a plaintiff must specifically allege how the fees at issue are excessive in relation to the services rendered. After all, a higher-than-average fee might still be prudent if the plan receives additional services that warrant a higher fee. As a result, a plaintiff cannot simply compare price; an examination of the services being purchased for that price must also be conducted." [Singh v. Deloitte LLP, No. 23-1108 (2d Cir. Dec. 10, 2024)]  MORE >>

"In November, [the Chair of the House Education and Workforce Committee questioned the DOL's] practice of sharing information obtained from its investigations with plaintiffs involved in ERISA-related litigation. These agreements are known as common interest agreements (CIA). But how common are CIAs at DOL? What do they look like in practice? And how should fiduciaries account for them?"  MORE >>

"[1] [F]inancial wellness, education, and advice have evolved into cornerstone benefits, with employers now leveraging advanced technologies and data to deliver tailored solutions.... [2] NQDC plans ... may now be expanding to include key employees and others in critical roles.... [3] The rollout of SECURE 2.0 provisions will reach a critical point in 2025, with sponsors now beginning to assess the impact of implementing optional features like student loan matching and self-certified hardship withdrawals."  MORE >>

"88% of eligible employees had an account balance in 2023 and 86.9% made deferrals.... Participants contributed an average of 7.8% of pay (up from 7.4%), and companies contributed 4.9% of pay (up from 4.7%) for a combined savings rate of 12.7% of pay.... [O]ptional provisions regarding distributions seem to be the most popular SECURE 2.0 provisions, with little uptake (so far) on most of the others."  MORE >>

"The SSA Death Master File used to be the source of truth, but due to legislative changes, now provides only approximately 16% of decedents with the downward trend likely to continue ... Today, instead of a single source of truth to identify decedents, performing mortality verifications requires a lot of effort as obituaries account for around 67% of identified deaths. This requires using thousands of data sources ... Missing or having typos in an individual's data could lead to a high percentage of missed deaths."  MORE >>

"Registered Investment Advisors (RIAs) were the focus of a recent SEC Investor Advisory Committee meeting over mandatory arbitration provisions. Legal professionals, investor advocates, and government officials among other panelists, looked at how these clauses might affect investor rights, justice, and openness. Talks exposed major gaps in data, legislation, and investor safeguards, sparking calls for change and more research."  MORE >>

"According to Cerulli Associates' latest analysis and plan sponsor surveying, the primary motivators for sponsors to join PEPs vary by company size. For smaller employers, 30% cited lower administrative costs as the top factor, followed by the simplification of plan administration and compliance at 23%."  MORE >>

"Last chance to correct certain Section 409A document failures discovered in 2024.... Nonqualified deferred compensation deferral elections should be made on or before December 31, 2024:.... Take certain action to address impact of Tax Cuts and Jobs Act on Section 162(m) of the Code.... Review whether equity-based compensation plans have sufficient shares remaining for 2025 awards.... Review director pay practices and consider separate annual limits on director equity awards.... Section 6039 of the Code information statements due by January 31, 2025.... Continue to consider clawback disclosure issues."  MORE >>

"Owners and management teams of smaller to midsize businesses may think nonqualified plans are a reward and retention strategy relevant only to large, publicly held companies. However, well-designed executive benefit plans can also effectively restore benefits to highly compensated employees in public or private, smaller to midsize organizations."  MORE >>

"NQDC plans can significantly increase the after-tax value of buyout offers, making them more appealing to executives. Offering NQDC plan deferral may be more cost-effective for employers than increasing the buyout amount. Properly designed NQDC plans provide a strategic advantage in managing executive transitions and achieving organizational goals."  MORE >>