Rev. Dec. 2025; 86 pages. "This publication gives you the information you need to determine the tax treatment of your pension and annuity income under the General Rule.... The General Rule is one of the two methods used to figure the tax-free part of each annuity payment based on the ratio of your investment in the contract to the total expected return."  MORE >>

"The most immediate operational problem is for 401(k), 403(b) and other DC plans that allow catch-up contributions.... Sponsors of tax-exempt governmental plans must make their changes by December 31, 2025, regardless of plan year. The Roth catch-up rule applies on a calendar-year basis, regardless of your plan year. Consequently, operational changes are needed by January 1, 2026 for all affected plans."  MORE >>

"In 2022, employers were required to amend T-E 457(b) Plans to reflect changes to the required minimum distribution (RMD) rules made by the SECURE Act of 2019, known as SECURE 1.0, including the increase in a participant’s required beginning date (RBD) to age 72.... SECURE 2.0 made additional changes to the RMD rules[.]"  MORE >>

"According to the complaint ... IBM breached its fiduciary duties by retaining several underperforming propriety TDFs and several Vanguard mutual funds that consistently underperformed similar options ... costing plan participants $1.9 billion in returns. The allegations focus on IBM's proprietary suite of All-in-One Life Cycle funds, which includes both target-date retirement and target-risk funds used as default investment options." [Arechiga v. International Business Machines Corporation, No. 25‑9067 (S.D.N.Y. complaint filed Oct. 31, 2025)]  MORE >>

"While small business retirement plan assets went up, only 59% of small business employees who were eligible enrolled in their employer's defined contribution plan in 2024. This is considerably less than the 82% of all private sector employees -- irrespective of size -- who are enrolled ... Small plan participation was reported to be significantly higher in those plans with automatic enrollment (81%) than those with voluntary participation (52%). "  MORE >>

"[T]he 'Saving for the Future Act' [HR 5887] aims to increase Americans' retirement savings while helping workers save for short-term emergencies.... Under the legislation, companies with ten or more employees would be required to contribute at least 50 cents per hour worked to participants' retirement accounts. This minimum would increase to 60 cents after two years and continue rising in line with wage growth."  MORE >>

"The third-party administrator (TPA) necessarily wears many hats for retirement plans. Who better than TPAs themselves to talk about some of the hats they're wearing and how they fit? A recent panel did just that."  MORE >>

"The aggregate funded ratio for U.S. corporate pension plans is estimated to have increased by 1.4 percentage points in October, ending the month at 104.0% ... The aggregate funded ratio is estimated to have increased by 6.2% and 1.9% year-to-date and over the trailing twelve months, respectively."  MORE >>

"The size and location of additional assets expected to complement Social Security income should directly inform clients' claiming decisions. So should a client's projected longevity, with better longevity generally encouraging delayed claiming where possible.... [C]urrent retirees depend on Social Security for about 40% of income on average."  MORE >>

"ICI recommended that Treasury authorize many custodians and providers to participate in the market for Trump Accounts ... ICI also pushed for Treasury to interpret the statute to permit as many investing strategies as possible.... State Street Global Advisors also noted that 'guidelines are needed on the process of converting Trump accounts to traditional IRAs.' ... [The Aspen Institute asked] that Trump Accounts [be] categorically disregarded in determining eligibility for means-tested public assistance programs[.]"  MORE >>

"[The section entitled Fiduciary Tips for Small Employers Selecting a PEP serves] as a valuable reminder that there ARE fiduciary considerations in making that choice -- something that purveyors of that option have been known to gloss over.... [T]hese admonitions could -- and should -- be broadly applied to pretty much any new plan option -- and not just for small employers. To that end, [here is] a fill-in-the-blank template, replacing the word PEP with, say -- alternative investments, cryptocurrency, retirement income, or a managed account."  MORE >>

"When you are evaluating whether to exercise stock options or sell shares from vested restricted stock/RSUs or an ESPP, you want to consider the thresholds that may trigger higher tax rates for you either this year or next. Assess whether you should defer income into next year or accelerate income into this year. Project your income from equity awards to see whether it will trigger the additional Medicare taxes on high incomes this year or next year."  MORE >>