"[T]he proposed rules indicate that the plan only needs to consider compensation paid by the 'employer sponsoring the plan,' disregarding other entities in the controlled group.... [A] plan that doesn't offer Roth contributions to participants can still allow for catch-up contributions, but only for participants who didn't earn more than $145,000 in the prior year.... If a participant turns 64 during the taxable year, they cannot take advantage of the higher limit for that year."  MORE >>

"The regulations mainly focus on mandatory Roth catch-up contributions for highly paid participants, but also address issues relating to 'super catch-up' contributions for participants who are ages 60 to 63."  MORE >>

"he most significant change in the VFCP is the addition of the SCC related to delinquent participant contributions and loan repayments to retirement plans -- the most corrected transactions under VFCP.... Unlike the VFCP application process, self-correctors will receive an email acknowledgment instead of a 'no action' letter (i.e., a letter stating the government agency will not take any enforcement action against the self-corrector)."  MORE >>

"[T]he plan document had helpful language granting complete discretion to the plan sponsor to decide the amount of plan expenses it would pay each year. The court distinguished between the 'settlor' decision by the employer to pay or not pay expenses -- as a non-fiduciary decision.... The court also held that there was no 'transaction' that could be the basis of a prohibited transaction finding, because there was no risk of underfunding because of the employer's actions." [Hutchins v. HP Inc., No. 23-5875 (N.D. Calif. Feb. 5, 2025)]  MORE >>

"Given the infancy of these novel theories and a largely unsettled legal landscape, it is paramount for plan sponsors and fiduciaries to implement risk mitigation strategies now. This includes at a minimum, evaluating their plan's forfeiture terms and ensuring that the use of plan forfeitures is consistent with plan terms."  MORE >>

"With the assistance of counsel, employers may consider whether it is feasible to amend the plan to expressly exclude undocumented workers -- i.e., employees who do not provide documentation that they are legally allowed to work in the U.S. Care should be taken in order to make sure such amendment can be properly administered without triggering any unintended consequences. Moreover, the amendment should not inadvertently violate applicable employment discrimination laws."  MORE >>

"The problems caused by using the incorrect definition of eligible compensation are: [1] The participant is not allowed to defer and contribute the correct amount into their 401k account, and [2] Potentially, employer matching and other employer contributions are not correct."  MORE >>

"More than two-thirds (68%) of pension plan managers say they will or are likely to increase contributions this year ... Two-thirds (66%) will increase their budget for scenario modeling over the next two years as 84% expect the coming year to bring an elevated risk profile. 22% surveyed say they do not have enough liquidity and a further 60% said liquidity could be problematic in extreme scenarios."  MORE >>

"The Federal Reserve's interest rate cut at the end of 2024, with more reductions expected in 2025, may leave employees wondering what it means for their retirement savings -- and their overall financial picture.... Employers can play a critical role in helping to guide their workforce through changing economic conditions by providing tools, personalizing communications -- and promoting long-term investment strategies."  MORE >>

"[1] Make sure the amount is eligible to be rolled over ... [2] Take RMDs before rollovers ... [3] Under age 59½? Check for 10% penalty-exception retention ... [4] Choose a direct rollover, not an indirect rollover."  MORE >>

"Agency heads shall, in coordination with their DOGE Team Leads and the Director of the Office of Management and Budget [OMB], initiate a process to review all regulations subject to their sole or joint jurisdiction ... Within 60 days of the date of this order, agency heads shall, in consultation with the Attorney General as appropriate, identify the following classes of regulations ... Within 60 days of the date of this order, agency heads shall provide to the Administrator of the Office of Information and Regulatory Affairs (OIRA) within the [OMB] a list of all regulations identified by class.... The Administrator of OIRA shall consult with agency heads to develop a Unified Regulatory Agenda that seeks to rescind or modify these regulations, as appropriate." [Also see accompanying Fact Sheet]  MORE >>

"Lori Chavez-DeRemer, President Donald Trump's pick to be Labor secretary, said [at a Senate HELP Committee confirmation hearing on February 19] that she'd work to help lawmakers craft legislation to provide independent contractors with more affordable health and retirement benefits If confirmed by the Senate."  MORE >>

"In 2010, Congress required six agencies to jointly prescribe regulations or guidelines on incentive compensation by April 21, 2011. The agencies formed a working group to draft and propose joint regulations but have yet to finalize them ... GAO is making six recommendations -- one to each agency required to issue incentive compensation regulations -- to jointly prescribe regulations or guidelines as soon as practicable. Each agency agreed with the recommendation." [GAO-25-107032 Feb, 20, 2025]  MORE >>