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Technical Questions and Answers on SPARK Institute's 403(b) Plans Information Sharing -- Minimum and Comprehensive Data Elements, Updated December 1, 2008

"Following the release of Version 1.01 of The SPARK Institute's Information Sharing ?--Minimum and Comprehensive Data Elements ..., The SPARK Institute received a number of technical questions. The SPARK Institute has formed a standing panel, made up of representatives from various member companies that played a significant role in developing the Data Elements. The SPARK Institute and the panel reviewed the questions and developed answers which are posted below. This information is being made widely available in order to assist all others that are adhering to the Data Elements Best Practices. The SPARK Institute will maintain this site and update it periodically with answers to questions it receives."

SPARK Institute Comments on Nevada's Proposed Regs (PDF)

14 pages. "[T]he SPARK Institute believes that the fiduciary standard of care applicable to retirement plans and their participants should be established at the federal level, not the state level.... Second, the SPARK Institute is very concerned that the proposed regulations' definition of 'Investment Advice' would inappropriately extend Nevada's fiduciary standard of care and disclosure obligations to cover a wide range of beneficial conversations that our members routinely have with their customers to educate them and encourage them to save for retirement."

SPARK Institute Comments on Proposed Investment Advice Regulation (PDF)

4 pages. "Overall, we maintain our neutral position with respect to the Proposed Rules, except for one significant exception related to certain new concepts that were included.... The SPARK Institute is concerned about additions to the Proposed Rules that dictate what criteria an investment adviser and plan fiduciary can consider in connection with making investment recommendations.... The SPARK Institute urges EBSA not to undertake defining concepts of 'generally accepted investment theory.' "

SPARK Institute Comment Letter to IRS: Recommendations for 2025-2026 Priority Guidance Plan (PDF)

"[T]he SPARK Institute is urging Treasury and IRS to prioritize projects that would: [1] Harmonize IRS and [DOL] electronic delivery standards; [2] Finalize the 2022 remote witnessing proposal; [3] Implement the new Saver's Match; [4] Implement SECURE 1.0's and 2.0's mandatory changes and provide certainty on 457(b) amendment deadlines; [5] Finalize the 2023 forfeiture proposal; and [6] Update and restate the Employee Plans Compliance Resolution System (EPCRS) in accordance with SECURE 2.0."

SPARK Institute Comment Letter to DOL on Proposed Fiduciary Rule (PDF)

28 pages. "Similar to the concerns that SPARK raised in response to the Department's 2016 Fiduciary Rule, [SPARK is] concerned that the proposed definition of fiduciary investment advice would inappropriately lower the bar for determining when a fiduciary relationship exists ... and result in negative consequences for retirement savings that could be avoided by a far more narrowly tailored rule.... [To] avoid these negative consequences, [SPARK] strongly urge[s] the Department to withdraw its Fiduciary Proposal."

SPARK Institute Comment Letter to SEC on AI Proposal (PDF)

"[T]he Proposal will negatively impact a variety of powerful tools and guidance that SPARK members make available to Americans saving in 401(k), 403(b) and 457(b) retirement plans ... [B]ecause of the expansive scope of the tools, programs, guidance, and even spreadsheets that the Proposal covers, SPARK members that provide recordkeeping and other services to defined contribution plans but also happen to be regulated (or have an affiliate that is regulated) as an investment adviser or broker-dealer, will be required to undertake a massive compliance effort simply to identify the tools and guidance that could be impacted."

SPARK Institute Comment Letter to IRS: Saver's Match (PDF)

12 pages. "From a retirement plan recordkeeping perspective, one of the most significant challenges to the success of the Saver's Match will be developing a reliable and efficient system for getting Saver's Match contributions transferred from the Treasury to an individual's account within a retirement plan.... Another important factor to consider is that a plan's recordkeeper is often independent of a plan's custodian."

SPARK Institute Comment Letter to OMB on DOL Retirement Savings Lost and Found Information Collection Request (PDF)

12 pages. "Although we believe that the ICR released by the Department in September significantly improves the ICR proposed in April, [SPARK remains] concerned that the revised ICR does not address many of the critical issues ... [T]he revised ICR does not address key cybersecurity and fiduciary matters, and it does not address [concerns] about the potential for 'false positives."

SPARK Institute Comment Letter to IRS on Notice 2024-55, Certain Exceptions to the 10% Additional Tax Under Code Section 72(t) (PDF)

"Domestic Abuse Victim Distributions: Clarify the treatment of defined contribution plans offering life annuities ... Confirm anti-cutback relief for in-service withdrawal provisions ... Do not create regulatory exceptions to self-certification ... Eliminate exclusion of governmental 457(b) plans for terminally ill individual distributions."

SPARK Institute Comments to IRS on Proposed RMD Regulations (PDF)

13 pages. "The Applicability Date should be delayed.... Plans should have flexibility as to spouses already receiving RMDs.... Election rule should not depend on whether participant died before the RBD.... Final regulations should clarify the treatment of a new spouse of the spouse.... Clarify implications of a Roth conversion after RMDs begin.... Provide reasonable rules for alternate payees with designated Roth accounts.... Clarify that QPDAs, in-plan annuities, and purchase of DB annuities are eligible.... Allow plan to rely on information from participant or insurer."