Jan. 6, 2025. "What's New: [1] New retirement plan distributions and their repayments.... [2] 2024 Line 15c Worksheet.... [3] Basis adjustments.... [4] References to 2024 Form 8915-F.... [5] Coronavirus-related distributions.... [6] Modified adjusted gross income (AGI) limit for Roth IRA contributions increased.... [7] Due date for contributions." [Also available: 2024 IRS Form 8606, Nondeductible IRAs]  MORE >>

"On November 1, 2024, the IRS published the limits under the Federal Code for the taxable year beginning on January 1, 2025.... [The Puerto Rico Department of the Treasury (Hacienda)] issues this Circular Letter with the purpose of establishing the limits applicable to qualified retirement plans under Section 1081.01(a) of the Code for the taxable year 2025."  MORE >>

"[PBGC Technical Update 25-1] notes that, for the past eight years, the President's Budget has called for the repeal of this change in order to prevent plan sponsors from incurring unnecessary costs and burdens in preparing and making the accelerated premium payments. However, as it now stands, the one-month acceleration for 2025 is still in effect."  MORE >>

"While there are no immediate steps that plan officials need to take based on these DOL updates, plan officials should be regularly conducting internal reviews of their operations, as applicable, to ensure that participant contributions and loan payments are being timely deposited, participant loans are being properly handled, and prohibited transactions are not occurring."  MORE >>

115 pages. "Justice Kavanaugh [to Mr. Wang, counsel for petitioner Cunningham]: Your theory means, I think, or at least the other side says that it's a prohibited transaction just to have recordkeeping services. Mr. Wang: Correct ... Justice Kavanaugh: And that seems nuts, right? That's what they say. And it does to me seem nuts too." [Cunningham v. Cornell Univ., No. 21-0088 (2d Cir. Nov. 14, 2023; cert. pet. granted Oct. 3, 2024; oral arg. Jan. 22, 2025; audio available)]  MORE >>

"The Supreme Court was divided on the issue, with Associate Justice Brett Kavanaugh expressing concern about the burden of providing evidence for employers if plaintiffs can sue without evidence upfront, which 'risks opening the floodgates to burdensome [lawsuits],' he said. On the opposite end, Justice Ketanji Brown Jackson questioned whether the current legal standard makes it too difficult for workers to hold fiduciaries accountable because it 'would be really, really hard for us to determine that the plaintiff has to plead them because they don't have the information,' she said." [Cunningham v. Cornell Univ., No. 21-0088 (2d Cir. Nov. 14, 2023; cert. pet. granted Oct. 3, 2024; oral arg. Jan. 22, 2025 transcript and audio)]   MORE >>

"Despite clear guidance from the U.S. Department of the Treasury acknowledging the propriety of using 401(k) forfeitures to offset future employer contributions and the decades-long practice of doing so, plaintiffs have gained traction with some courts ... Although these class actions remain in their infancy, a handful of decisions on motions to dismiss offer insight into how courts are viewing these claims and highlight the importance of reviewing forfeiture provisions in plan documents to ensure that the use of forfeitures is consistent with plan terms and applicable laws."  MORE >>

"Data modeling is the process of creating conceptual and logical frameworks that organize, structure, and represent data about retirement plans, financial products, and client behavior. In the retirement industry, it helps providers manage and analyze data about participants, financial products, and client behavior.... By establishing a common language for data, organizations can streamline operations, enhance decision-making, and lay the groundwork for advanced analytics."  MORE >>

"While even simple analysis and guidance can be helpful to a worker-participant, many retirement-readiness calculators may be inherently flawed or misleading as to the score received and the results implied.... [1] Default assumptions may be over-optimistic. [2] Participants may have one or several other retirement-based accounts outside the plan that are not included ... [3] The survey questions may not address or require input on other significant aspects of the participant's financial life"  MORE >>

"During December, the estimated cost to transfer retiree pension risk to an insurer in a competitive bidding process increased from 101.2% to 101.4% of a plan's accounting liabilities (accumulated benefit obligation, or ABO).... During the same time period, the average annuity purchase cost across all insurers in our index also increased, from 103.9% to 104.0%. The competitive bidding process is estimated to save plan sponsors about 2.6% of PRT costs as of December 31."  MORE >>

"This article addresses the 'what should you do' from a procedural perspective as if you are considering responding to the offer and wish to vet, analyze, and pursue it. Much will depend on the structure of the proposed sale ... However, before you cross that threshold and start that process, there is the issue of whether you must respond to it or other offers."  MORE >>

"The leadership of the Senate Committee on Health, Education, Labor and Pensions (HELP) listed some key retirement and health priorities for the Committee for this session of Congress ... [including] benefits portability, the definition of independent contractor, funding of the [PBGC], pharmacy benefit manager (PBM) reform, and the cost of prescription drugs."  MORE >>

"January is an excellent time to consider your tax planning for 2025.... [T]hree sets of tax figures in 2025 that all employees should know ... relate to compensation from work ... [1] The Social Security wage base ... [2] Your income-tax bracket and withholding ... [3] Your contribution limit for qualified retirement plans ... [2] Inflation adjustments for health savings accounts."  MORE >>