"The [PBGC] proposes miscellaneous technical corrections, clarifications, and improvements to its regulations, including its regulations on premium rates, premium due dates, and termination of single-employer plans. These changes are a result of PBGC's ongoing retrospective review of the effectiveness and clarity of its rules and of statutory changes."  MORE >>

"The delay in the effective date applies to the following provisions: [1] Surviving spouse treated as participant.... [2] Payments to beneficiary of surviving spouse.... [3] RMDs for participants with pretax and Roth accounts.... [4] Corrective distributions that reduce excise tax.... [5] Impact of divorce on qualified longevity annuity contracts (QLACs).... The effective date remains Jan. 1, 2025, for proposed provisions relating to see-through trusts and updates to the life expectancy and uniform lifetime tables."  MORE >>

"SECURE Act 2.0 essentially codified the ad hoc IRS guidance previously issued in connection with federally-declared disasters to provide three sources of expanded access to retirement funds: [1] qualified disaster relief distributions; [2] increased loan limits; and [3] loan repayment suspensions."  MORE >>

"With the imminent change in presidential administration (and related changes to executive branch agencies), the proposed regulations face uncertainty and could potentially be withdrawn or substantially altered. Regardless, for plans subject to these rules, being able to demonstrate the application of good faith statutory interpretation will be crucial."  MORE >>

"If two pre-enactment plans merge, their pre-enactment status remains. If one of the plans is not a pre-enactment plan, the pre-enactment plan status applies to the entire new plan only if the pre-enactment plan is the surviving plan and the plan merger occurs within a specific transition period. The transition period is the same several-year period used for testing nondiscrimination when there is an acquisition, merger or spinoff."  MORE >>

"Under the proposed regulations, no plan is required to implement a Roth feature. If a plan does not include a Roth feature, the High Earning Group will not be permitted to make any catch-up contributions under such a plan.... [T]he IRS generally provides that participants who are not in the High Earning Group must still have the option of making traditional catch-up contributions; in other words, plans cannot require that all catch-up contributions be made on a Roth basis to simplify the administration of this requirement."  MORE >>

"Plans that offer catch-up contributions do not have to offer the higher catch-up limit. Plans can limit catch-up contributions for participants ages 60-63 to the same limit that applies to all other catch-up eligible participants. Plans that offer the higher catch-up limit to participants ages 60-63 will not violate the universal availability requirement, even though all other catch-up eligible participants are unable to make catch-up contributions in the same dollar amount."  MORE >>

"There are both mandatory and optional parts of these new rules, and we will address those as we go. Sponsors will eventually need to amend their plans to reflect these changes, but the current deadline for that is not until the end of the 2026 plan year. In the meantime, companies need to keep track of how they operate these new rules in their plans so that those details can be captured in the amendments when the time comes." Part 1: Increased Catch-Up Contribution Limit [this article]; also see Part 2: Rothification Strikes Back and Part 3: Return of the Plan Correction."  MORE >>

"The Second Circuit adopted the meaningful benchmark standard and articulated specific requirements beyond those identified in other circuit court cases.... Plaintiffs cannot 'disingenuously' (as the trial court put it) compare both the direct and indirect fees of their plan to just the direct fees of other plans.... [P]laintiffs can no longer compare administrative costs without factual allegations about the 'nature and quality' of the services being provided." [Singh v. Deloitte LLP, No. 23-1108 (2d Cir. Dec. 10, 2024)]  MORE >>

"[W]hen AI marries with the large, deep-data aggregators ... they’ll take out 80%, the middle portion, of the planning business. ... This will eliminate advisors who aren’t providing service to the high net worth, irrespective of whether they’re with a wirehouse, are independent [with a broker-dealer] or are an RIA. Firms that aren’t positioned for that transition will be left behind."  MORE >>

"Beginning with the 2019 survey, the [current population survey (CPS)] added several questions relating to retirement accounts.... [W]hen adjustments were made for the new questions in 2018, the percentage participating increased to 47.5 percent for all workers. Using these same adjustments for 2019-2023, this percentage remained around 49 percent, resting at 49.3 percent in 2023."  MORE >>

35 pages. "This report provides a framework for assessing how retirement plans best meet an organization's mission and objectives. The framework presents 10 key considerations ... which include how changes in broader economic and workforce factors can influence the effectiveness of plan designs.... The framework ... enables companies to prioritize what changes are needed and where, such as for what critical employee segments or organizational units. "  MORE >>

"[C]lients previously affected by the WEP or GPO can expect to receive more Social Security income going forward -- in some cases significantly more -- presenting opportunities that may positively affect their retirement planning.... [It's] important for advisors to first identify which clients are currently subject to WEP or GPO and ensure that those who may need to file for benefits do so as soon as possible."  MORE >>

"As written, the proposed adequate consideration regulation risks introducing further confusion to an already unclear standard. By way of example, the proposal incorrectly attempts to define the exemption as primarily focused on the accuracy of a trustee’s fair market value determination rather than on the trustee’s good faith process in determining value. This creates an internal statutory conflict with ERISA’s process-centric fiduciary duty standard."  MORE >>

"With respect to ISO exercises and ESPP share transfers that occurred in 2024, Copy A of the respective form must be filed with the IRS no later than February 28, 2025, if filing on paper, or March 31, 2025, if filing electronically.... Copy B of the respective form must be furnished to the applicable employee or former employee by January 31, 2025."  MORE >>