"[T]he 2020 Letter is no longer qualified by the Supplemental Statement, and although that change, in and of itself, does not appear to permit plan sponsors to immediately offer asset allocation funds with a private equity component as investment options with impunity, it is the first step towards a significantly more open environment."  MORE >>

"The IRS has approved two compliance workarounds ... To use these methods, your plan must: [1] Have documented practices and procedures to comply with the Roth catch-up rule. [2] Include these correction methods in your plan document when you amend for SECURE 2.0 in 2026. No amendment is required now. [3] Adopt a deemed Roth election provision."  MORE >>

"Form 5330 is used to report and pay excise taxes related to employee benefit plans, particularly for prohibited transactions under ERISA. [... [1] When to pay ... [2] Penalty for late filing of Form 5330 ... [3] Filing the form ... [4] Excise tax revenue."  MORE >>

"A federal appeals court ruled ... that a 2014 law allowing for the reduction of pension benefits to prevent the collapse of financially troubled multiemployer plans does not constitute an uncompensated 'taking' of private property under the Fifth Amendment.... [The court] explained that pension benefits are not a form of physical property. Instead, they are considered a contractual right to receive payments from the pension plan, not an ownership interest in the plan's underlying assets." [King v. U.S., No. 23-1956 (Fed. Cir. Aug. 18, 2025)]  MORE >>

"DOL attorneys requested a 60-day delay from the Fifth Circuit Court of Appeals in April, citing the change in administrations and the need for new leadership to become familiar with the rule. Attorneys [have now] asked for another 60-day delay ... which sets the next deadline on Oct. 28."  [FACC. v. DOL, No. 24-0163 (E.D. Tex. Jul. 25, 2024; on appeal to 5th Cir. No. 24-40637; motion to extend granted Aug. 15, 2025)]  MORE >>

"This decision is important -- not just because it ends a legal marathon, but because it puts to rest the argument that certain investment types, like private equity or hedge funds, are automatically off-limits for participant-directed plans." [Anderson v. Intel Corp. Inv. Policy Comm., No. 22-16268 (9th Cir. May 22, 2025)]  MORE >>

"[1] Know what you're buying (or leaving behind) ... [2] Do your 401(k) due diligence ... [3] Understand your options post-merger ... [4] Document, document, document.... [5] Beware the transition period trap ... [6] Communicate clearly."  MORE >>

"The Protecting and Preserving Social Security Act [HR 4968] would use the Consumer Price Index for the Elderly, or CPI-E, to calculate the relevant cost-of-living adjustment and phase out the cap on Social Security contributions over the next seven years."  MORE >>

"Hourly workers are more likely than salaried employees to cash out 401(k)s. The reason ... may be that hourly workers have more income fluctuations. Those ups and downs can leave them short of cash. Workers with lower incomes are more likely to cash out than those with higher incomes. That data point, too, suggests financial need.... [W]orkers with emergency savings were much less likely to cash out a 401(k) when leaving a job."  MORE >>

"[W]e're assured that participants are clamoring to have access to private market investments.... The reality is that these types of surveys are rarely designed to actually gauge participant interest ... Rather, they are a means to ... encourage plan sponsor/fiduciary consideration on the path to the ultimate acceptance of options they might otherwise be disinclined to entertain."  MORE >>