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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 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."

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."

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."

Big Catch-Up Contribution Changes Coming in 2026

"Plan Sponsors that do not want to add a Roth provision to their plan do not need to do so, nor do they need to stop permitting catch-up contributions. However, only non-HPIs would be able to make catch-up contributions under such plan.... Plan Sponsors will need to monitor who is an HPI and ensure that they are not permitted to defer more than the deferral limit ... A plan can provide that, in the absence of an affirmative election to the contrary, HPI participants will be deemed to have irrevocably elected that their catch-up contributions will be Roth.... There are three ways in which a Plan Sponsor may correct an HPI's pre-tax catch-up contributions."

Oh, Fine! Keep the Money: The New IRS Overpayment Guidance

"The IRS's updated rules for overpayments take a realistic approach at correction in permitting plan administrators to weigh the benefit to the plan and its participants in chasing (often former) employees for what may be miniscule balances.... In all likelihood, massive amounts of overpaid money remain in receiving plans and IRAs due to the inertia of overpaid employees. The simplified options and ability of a plan sponsor to simply let the money go is a welcome improvement."