57 pages. "This document sets forth proposed regulations that would provide guidance for retirement plans that permit participants who have attained age 50 to make additional elective deferrals that are catch-up contributions. The proposed regulations reflect statutory changes made by the SECURE 2.0 Act of 2022, including the requirement that catch-up contributions made by certain catch-up eligible participants must be designated Roth contributions."  MORE >>

"As a surviving spouse, you have more flexibility with an inherited 401(k) than other beneficiaries. This flexibility allows you to choose options that best suit your financial needs and long-term goals. The key is understanding the rules and making informed decisions based on your circumstances, including your age, tax situation, and income needs."  MORE >>

"By granting summary affirmance in Lloyd, the Second Circuit reaffirms its approval of the effective vindication doctrine, which has provided the basis for invalidation of ERISA plan arbitration provisions in the Third, Sixth, Seventh, and Tenth Circuits ... The Supreme Court will have another opportunity to take up the effective vindication doctrine in a related case out of the Sixth Circuit ... albeit regarding a narrower arbitration provision than the one at issue in this case." [Lloyd v. Argent Trust Co., No. 22-3116 (2d Cir. Jan. 6, 2025)]  MORE >>

"[F]actors to consider when deciding whether Roth contributions are right for your plan: [1] Hedge against tax-rate increases carries some risk.... [2] Opportunity to exceed Roth IRA limitations.... [3] Automatic contributions and Roth conversions.... [4] Complexity of the decision and communication.... [5] Complexity of plan administration. "  MORE >>

"Terminating a defined benefit plan ... requires strategic planning and extensive preparation to ensure regulatory compliance and a smooth process for all stakeholders.... [1] Ensure transparent communication ... [2] Plan funding and financial implications.... [3] Review compliance and legal considerations.... [4] Create a timeline.... [5] Identify new options for participant benefits and distribution."  MORE >>

"This database will only be useful for people who have worked for a private sector employer, participated in a workplace retirement plan and qualified for benefits through that employer.... [T]he service. This is because the database doesn't provide information on retirement plans sponsored by the government or religious organizations."  MORE >>

"Auto-enrollment will increase the contribution rate of those who would never have joined the plan and those who would have joined at a lower rate, but will decrease contributions of those who would have contributed more than the default. On average, the studies showed that auto-enrollment increased contributions."  MORE >>

"Cerulli data finds most (57%) of DC recordkeepers indicate that 50%-99% of plans sold in 2023 were sold through advisors. Over the next decade, Cerulli projects that the 401(k) market will grow to more than a million plans in the micro plan market, and wealth advisors will increasingly be involved in selling these plans."  MORE >>

"In order to compute the 2025 annual adjustment, the Department multiplied the most recent penalty amount for each applicable penalty by the multiplier, 1.02598, and rounded to the nearest dollar.... [T]he increased penalty levels apply to any penalties assessed after January 15, 2025."  MORE >>

"The maximum penalty for failing to file Form 5500 increases from $2,670 to $2,739 per day that the filing is late.... The maximum penalty for failing to provide the SBC increases from $1,406 to $1,443 per failure.... Violations of [GINA] ... and failures relating to disclosures regarding the availability of Medicaid or [CHIP] assistance, may result in penalties of $145 per participant per day, up from $141.... For [401(k)] plans with automatic contribution arrangements, penalties for failure to provide the required ERISA Section 514(e) preemption notice to participants increase from $2,112 to $2,167 per day. "  MORE >>

"What is a private letter ruling and why is it so important right now in the plan sponsor space? ... What are the benefits to the employee when it comes to retirement contribution choice, as illustrated by the August PLR? ... How can plan sponsors benefit from the type of retirement contribution choice program approved by this recent private letter ruling? ... If a plan sponsor is interested in this type of program, what should they do? ... What about compliance concerns beyond profit sharing?"  MORE >>

"Loper Bright and Corner Post are already changing how courts handle challenges to ERISA regulations.... [A Texas District Court] applied Loper Bright to enjoin the effective date of a 2024 DOL rule that broadly redefines fiduciary under ERISA.... [Another District Court] agreed with the above analysis and enjoined the same rule.... However, Loper Bright is not without limits ... 2025 should see additional Loper Bright challenges."  MORE >>

"[An] employer may provide disaster assistance payments under IRC section 139 on a tax-free basis ... [E]mployers can pay for hotel stays, money for food and clothing, or even to help repair homes damaged or destroyed by the fires. There is no limit on such payments, meaning employers can determine how much assistance to provide those affected.... [E]mployers can create a leave-sharing program for employees impacted by disasters."  MORE >>

"[M]any organizations have a tendency to 'set and forget' their top-hat plans, often for years at a time. Unfortunately, such organizations often forget the most important fact about top-hat plans: in order to remain exempt from most of ERISA's requirements, top-hat plans must continuously satisfy a certain set of criteria.... This article examines what it means to satisfy those criteria and what the stakes are for sponsoring employers who get it wrong."  MORE >>