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Ferenczy Benefits Law Center Comment Letter to IRS on Proposed Regs for Catch-Up Contribution (PDF)

11 pages. "This comment letter raises the following [catch-up contribution (CUC)] questions and issues: ... [1] Benefits, rights, and features testing in a non-Roth plan; [2] Participant notice requirement for Roth CUC; [3] Challenges with Roth CUC corrections; [4] Roth practices & procedures.... [5] Setting special limits for ages 60-63 CUC.... [6] Issues impacting Puerto Rican employees."

Ferenczy Benefits Law Center Comment Letter to IRS on Proposed Regs for Mandatory Automatic Enrollment (PDF)

14 pages. "This comment letter raises the following [mandatory auto enrollment (MAE)] questions and issues: [1] Small business exception; [2] Defining portions of years for automatic increase; [3] Application of QDIA requirements for employer-directed plans; [4] Application of MAE in company acquisitions; [5] Clarification of plan merger issues; [6] Correction of MAE failures; [7] Consequences for union employees; [8]The impact of MAE on deferral-only 403(b) plans."

What Does The New Tax Law Mean for Retirement Plans?

"Anytime that tax rates are lowered, the value of the tax deduction for plan contributions goes down.... Under the new rules, owners of unincorporated entities are given a deduction equal to 20% of their 'qualified business income,' which is (generally) their net income from the business."

What Will the Benefits Service Provider of the Future Look Like? (PDF)

"[W]hat we have seen in the retirement plan administration industry mirrors what we have seen nationally -- an Industrial Revolution of sorts ... One would think that this makes the servicing of retirement programs easier and less expensive, but the opposite is often true... As computers increasingly do what we used to do by hand with an HP 12C calculator and a pencil, Congress, the [DOL], and the [IRS] have also increased the compliance burdens.... Are we going to see the benefits equivalent of the 'citizen-driver' experience, where you can pick up administration on any street corner with a cell phone and get the same ride to your destination as you would with a taxi or a limo?"

Retirement Plan Design: Bilbo Baggins Finds Safe Harbor in the Shire

"Bilbo lives a quiet, comfortable life in the Shire. He owns a farm and employs several workers ... One day, wanting to show his appreciation for his beloved employees, Bilbo sets up the Bilbo Baggins’s Benefits 401(k) plan (BBB 401(k)). He includes an employer match ... Before Bilbo can dive into the nuts and bolts of plan administration, however, the wizard Gandalf shows up to his house with a rowdy band of dwarves. Before Bilbo knows it, he is whisked away on an epic adventure. Bilbo, a homebody to the core, worries about what will happen to him, his employees, and the BBB 401(k)."

Extension of Restatement Deadlines for 403(b) and Defined Benefit Plans; Plan Loan Extensions Under CARES Act

"The remedial amendment period for 403(b) plans was set to expire on March 31, 2020. The IRS announced that it is extended to June 30, 2020.... The remedial amendment period for the second six-year cycle for defined benefit plans, which was due to end on April 30, 2020, is extended to July 31, 2020.... The actual language of CARES provides that the deadlines of Code section 72(p) are automatically delayed statutorily for a one-year period for eligible loans.... If an employer has taken action which, by definition, causes the employee to be eligible for the loan delay, it should modify the loan procedure to permit it to suspend loan payments automatically while the crisis is at hand."

Roth Catch-Up Contributions: Options and Decisions

"The Final Regs give plan sponsors more options for how to handle this complex plan provision. Some make your life easier, and some may make things more difficult.... Deemed versus affirmative election ... Determination of HPI for controlled/affiliated service groups ... [P]lans with no Roth contributions and HCEs who aren't HPIs ... Including Roth contributions made before limit reached ... [C]orrection deadlines and consequences ... Additional guidance on increased 60-63 catch-up contributions ... [D]iscuss your options as soon as possible with your TPA."

Retirement Plan Correction Solution: The Pension Plan Pirate

"While VFCP cannot be used to absolve the breaching fiduciary of criminal activity ... an innocent fiduciary may still use this program if they have also reported the crime to the appropriate authorities. If all goes well, and [the innocent fiduciary] successfully completes the VFCP program, [they] will receive a No Action Letter from the DOL stating that it will not initiate an investigation or impose any additional penalties."

Final Catch-up Regulations, Finally

"The Final Regs are effective as of tax years beginning after December 31, 2026, which means that plans and taxpayers need to exercise 'good faith' compliance in the meantime.... [This article discusses] issues that ... are still outstanding.... [1] Final rules regarding the 60-63 limit ... [2] Final rules regarding Roth catch-up ... [3] Who's the employer? ... [4] 403(b) plans ... [5] Puerto Rican plans."

Retirement Plan Correction Solution: Retirement Plant M&Ayhem

"[R]ules relating to the company's benefit plans are commonly not the M&A folks' strong suit, and, as a result, are not given the attention needed ... and the problems that arise as a result of not handling the plans correctly can be very expensive to resolve.... Here are some examples of bad things that could happen if the plan issues are not addressed when a company transaction occurs."