Jan. 2025. "What's New: Beginning January 1, 2025, Form 5558 can be filed electronically through EFAST2 or can be filed with the IRS on paper."  MORE >>

"Fiduciaries of ongoing plans may welcome this option for dealing with small amounts owed to missing participants and beneficiaries.... [T]he DOL notes that unclaimed property funds do not deduct fees (unlike IRAs) and maintain robust outreach and technology operations."  MORE >>

"[FAB 2025-01] states that the DOL is not precluded from asserting violations under ERISA Sections 107, 209, and 404 for failure to maintain records. Second, it states that it does not address federal income tax withholding obligations with respect to transferred amounts.... [R]etirement plans should withhold and remit federal income tax on transferred amounts in accordance with Section 3405 of the Internal Revenue Code until the IRS indicates otherwise."  MORE >>

"[FAB 2025-01] allows temporary relief of DOL enforcement for fiduciaries who transfer retirement plan benefits of $1,000 or less owed to missing participants to a state unclaimed property fund. This relief is only provided if the plan fiduciaries comply with applicable conditions. But satisfying the applicable conditions can be overly-complex ... To verify if the fund qualifies as an 'eligible state fund,' ... nine conditions must be met by the state unclaimed property fund[.]"  MORE >>

"Plan sponsors may use the SCC to correct a delinquent remittance if: the delinquent contributions and loan repayments (principal amounts) are deposited to the plan within 180 days of the applicable pay date, and the lost earnings on the principal is $1,000 or less. Self-correctors must use the VFCP Online Calculator to calculate lost earnings from the pay date through the date the earnings are deposited to the plan."  MORE >>

"IRS has extended a host of tax filing and payment deadlines for retirement plan sponsors and participants affected by the Los Angeles wildfires. IRS's relief automatically triggers the same extension for certain filings to the [PBGC]. [SECURE 2.0] also allows plan sponsors to offer affected participants access to their retirement savings and other relief."  MORE >>

"The legislation repeals two provisions under Social Security -- the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP) -- for monthly benefits payable after December 2023. This In Focus provides summary information on how the two provisions worked, who will be affected by the act, and how the legislation may interact with other components under Social Security and other programs. Finally, this In Focus discusses recent issues related to the implementation of the act." [IF12890 Jan. 31, 2025]  MORE >>

"[T]he court ... held that a TDF was not an appropriate 'comparator' to use to judge the fees and performance of a managed account. While a TDF generally only considers 'age and target retirement date/life expectancy,' the Bechtel managed account also took into account 'risk tolerance; account balance; outside assets and pension wealth; gender; salary; savings rule; pension compensation; and social security income.' " [Hanigan v. Bechtel Glob. Corp., No. 24-0875 (E.D. Va. Jan. 10, 2025)]  MORE >>

"plan sponsors should be making SECURE 2.0 decisions with eyes open and with due consideration, those decisions should be tracked, and the provisions implemented in a legally compliant manner. It is important to avoid knee jerk reactions and to work with benefits counsel and other professional advisors to shore up processes and avoid future headaches. There are outstanding questions and pros and cons relative to all of these decisions that should not be taken lightly."  MORE >>