"The moratorium effectively freezes pending Executive Branch agency regulations.... [which] is certain to include, at a minimum, a pause of the Notice of Planned Rule Making (NPRM) on adequate consideration ... The moratorium is a common approach taken by new Presidents." [BenefitsLink note: the Proposed Regs on Adequate Consideration, and the Safe Harbor PTE for Acquisition of Employer Stock, both of which had been scheduled for publication on Jan. 22, 2025, have been withdrawn by EBSA.]  MORE >>

"Does this mean that all plans with catch-up contributions have to add Roth? ... Must [a 'higher-paid individual' (HPI)] affirmatively elect to have catch-up contributions be treated as Roth? ... Is there an obligation for the Plan Sponsor to notify the HPI about the change to Roth? ... Which participants must comply with this? ... Is the $145,000 based on only compensation earned with the current employer or is it determined by individual? ... Does a participant have to wait until they hit a limit to make Roth Catch-up contributions? ... Impact on Puerto Rico dual-eligibility plans ... Determining the effective date."  MORE >>

"The earliest potential effective date for certain proposed required minimum distribution rules could be further delayed beyond the 2026 distribution calendar year."  MORE >>

"The unknown is how quickly the DOL sends a delinquency notice, ending eligibility to use DFVCP and subjecting the plan sponsor to those big daily penalties.... [A]lthough the IRS is often the faster agency (sometimes sending notices within only a couple months), the DOL can take 4 to 6 months or longer.... The assumed 'advantage' of submitting a timely but incomplete form and amending later is that it avoids the daily penalties. ... both the IRS and DOL tend to respond more quickly to deficient Forms 5500 than delinquent ones. And if the deficiency is due to something obvious (like the plan auditor's report) being omitted, the agencies tend to be heavier-handed. "  MORE >>

"Already reported in ERISA class action lawsuits alleging fiduciary breaches for failure to safeguard plan assets are cases with allegations of failure to protect confidential personal financial information. Safeguarding the sensitive personal financial data contained in ERISA accounts from cyber threats presents a unique challenge. No federal statute specifically addresses cybersecurity protection of electronic records."  MORE >>

"Employers must accept that they will either pay more in employer contributions or need to cut back on other contributions, such as reducing the match or lowering discretionary contributions.... Integrating student loan repayment matching requires updates to plan documents and payroll systems. Employers may also need to coordinate with their 401(k) recordkeeper to ensure proper tracking and reporting.  ... Employers may also need to invest in education campaigns, workshops, or communication tools to drive engagement[.]"  MORE >>

"If an employer meets all three of the following criteria, [the plan design] can usually justify contributions for the HCEs which are significantly larger than under other traditional contribution methods. [1] The company has at least 12 to 20 employees eligible for a qualified plan ... [2] The average age of the HCEs is at least 8 to 12 years above that of all other eligible employees. [3] There are no HCEs among the youngest third of all eligible employees."  MORE >>

"[A]ll executive departments and agencies [are hereby ordered] to take the following steps: [1] Do not propose or issue any rule in any manner, ... until a department or agency head appointed or designated by the President after noon on January 20, 2025, reviews and approves the rule.... The Director or Acting Director of the Office of Management and Budget may exempt any rule that he deems necessary to address emergency situations or other urgent circumstances, including rules subject to statutory or judicial deadlines that require prompt action. [2] Immediately withdraw any rules that have been sent to the OFR but not published in the Federal Register, so that they can be reviewed and approved ... [3] [C]onsider postponing for 60 days from the date of this memorandum the effective date for any rules that have been published in the Federal Register, or any rules that have been issued in any manner but have not taken effect." [BenefitsLink note: as of Jan. 21, 2025, both the Proposed Regs on Adequate Consideration, and the Safe Harbor PTE for Acquisition of Employer Stock, have been withdrawn by EBSA.]  MORE >>

"Section 162(m) has been amended over the years to expand the definition of a 'covered employee,' which originally was limited to a corporation's principal executive officer (PEO), principal financial officer (PFO), and its next three most highly compensated executive officers. Most recently, in 2021 [ARPA] amended the definition of 'covered employee' to include, for tax years beginning after December 31, 2026, the corporation's five highest compensated employees other than its PEO, its PFO and its next three most highly compensated executive officers. The proposed regulations provide guidance on determining and applying Section 162(m) to these next five most highly compensated employees."  MORE >>