"Box 5 of 5498-TA calls for the 'Basis or investment in the contract,' an item that is absent on a standard 5498.... Since Trump Accounts can, and often will, contain post- and pre-tax money in the same account, tracking basis will be important for tax reporting and for rollovers.... The IRS is requesting feedback on this form[.]"  MORE >>

"[W]hile the recent court decisions reset the broader debate over the scope of fiduciary status, they do not alter the prohibited transaction analysis applicable to non‑discretionary fiduciary advice. Until the DOL says otherwise, PTE 2020‑02 remains the governing rule of the road, and service providers should continue to evaluate advisory relationships and compensation practices accordingly."  MORE >>

"[P]lan sponsors who are more interested in the out-of-plan solution tend to appreciate some of the benefits in terms of absence of restriction on contributions. There are no restrictions on HCE usage, ease of access to the funds, access to a high yield interest investment as well.... [P]lan sponsors interested in PLESA [are] looking at the ability to tap into a known and trusted retirement solution, avoid any friction by being able to take advantage of that payroll deduction. They also like the ability to have employer match and auto enrollment as a function of PLESA as well."  MORE >>

"Broadening access to alternative investments is 'certainly a key part' of Labor's plan, but 'it's really more about ERISA litigation,' said Brad Campbell. 'A growing wave of frivolous ERISA lawsuits' are harming the retirement system, EBSA head Daniel Aronowitz said at a conference. Labor is taking comments on its plan until June 1."  MORE >>

"90% of defined contribution (DC) plan sponsors believe the core purpose of a DC plan “should be to serve as an income source during retirement.” Another 59% think 401(k) plans should offer lifetime income at retirement, and 54% support defaulting a portion of savings into guaranteed income."  MORE >>

"63% of millennials and 54% of Gen Xers are more likely to put part of their portfolio in an annuity or other guaranteed income solution. This pivot opens the door for advisors who have historically only used annuities as near-retirement products. They can now focus on positioning them as early-stage planning tools."  MORE >>

"While grandparents will be able to make contributions on behalf of grandchildren to Trump Accounts, IRS rules appear to strictly limit the circumstances where they can open up those accounts. Making matters worse, grandparents may be committing perjury without even knowing it when signing Form 4547 or using the website."  MORE >>

"Opening a custodial IRA for a grandchild is a savvy move that combines estate planning with a massive head start on wealth building. For grandparents, it's often more efficient than a traditional savings account or even a 529 plan, depending on the goal. For grandchildren, it can be invaluable, especially if they graduate from college during a bad economy."  MORE >>

"[T]here are some situations where contributing to a 401(k) retirement account might not be a smart money move for seniors. This usually occurs after workers have accumulated a large portfolio and are maximizing their tax strategy in retirement. Many people may also need to stop maxing out a 401(k) when they have competing financial priorities."  MORE >>

"According to the [LIMRA report], close to 30% of adults over age 65 have experienced a drop in cognitive capacity, with financial management among the first skills to diminish.... The report notes that while savings can recover from market downturns, losses due to cognitive decline are often permanent.... [T]his drop in cognitive ability has irreparable impacts, such as an average household wealth loss of nearly $124,000."  MORE >>

"Because DB programs persist, accountants' ability to estimate the resulting liabilities is crucial. It is important to understand the computations and assumptions needed for DB plan rates of return, discount rates, inflation, and life expectancy variables.... As a result of the future risks presented by DB plans, accounting and finance professionals can do several things regarding pensions and their related liabilities."  MORE >>

"As to civil (not criminal) enforcement, [FAB 2026-01] establishes a clear lodestar. The emphasis is to be on breaches of the duty of loyalty ... [E]nforcement activities need to have a close connection with: [1] The plain language of ERISA's text, [2] Clearly established guidance in final DOL regulations or prominently published sub-regulatory guidance, or [3] Clearly established court decisions.... [T]he DOL's Assistant Secretary must be informed by field personnel of 'significant enforcement activity,' which is to include any proposed settlements or voluntary corrective actions.... EBSA investigators and professionals must not do anything that compromises the DOL's independence, integrity, and credibility with the regulated or participant communities."  MORE >>

"That strategy of recasting claims for benefits under an ERISA plan as claims under state law ... runs headlong into one of ERISA's most potent defenses: the preemption defense. This defense is particularly important for companies that work in and near the employee benefits space and find themselves targeted with litigation arising from their work.... For example, where an employee accuses an insurer or technology platform of misrepresenting the availability of a particular benefit and seeks damages arising from the misrepresentation, that claim will generally be preempted."  MORE >>