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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 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 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 Comment Letter to EBSA on Proposed Procedures Governing the Filing and Processing of Prohibited Transaction Exemption Applications (PDF)

"The proposal will create greater uncertainty for the regulated community.... The proposal will discourage applications.... The proposal will unnecessarily limit transactions eligible for relief.... Reliance is critical and must be clearly defined.... The SPARK Institute is also concerned about the proposal's new 2% presumption for qualified independent fiduciaries."

SPARK Institute Comments on the SEC Redemption Fee Rule (PDF)

12 pages. "The SPARK Institute submitted this comment letter to the SEC ... outlining its position on Rule 22c-2 regarding mutual fund redemption fees."

SPARK Institute Comment Letter to DOL Supporting Proposed Delay of Fiduciary Rule (PDF)

"[The SPARK Institute believes] that a delay is warranted ... [In] order to allow the Department to conduct a thorough review of the Investment Advice Regulation and to prevent potentially duplicative and unnecessary implementation costs, which will adversely affect plan participants, we encourage the Department to adopt a delay of longer than 60 days."

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 Requests IRS Guidance on 403(b) Prototype Plan and Use of the Error Correction Program (PDF)

"Larry Goldbrum, General Counsel of The SPARK Institute [said, ] 'Our request seeks clarification regarding a number of issues and makes recommendations that are intended to make these programs as available as possible to the broadest segment of the 403(b) community ... [The] letter covers matters relating to vesting, mandatory pre-tax employee contributions, required minimum distributions, the relationship between plan terms and conflicting investment arrangement provisions, and others." [Full text of the letter.]

SPARK Institute Comment Letter to IRS on Proposed Required Minimum Distribution Regs (PDF)

17 pages. "The final regulations should not be effective until, at the earliest, calendar years beginning at least 9 months after the final regulations are released.... The Service should not modify the rules for 403(b) plans, or if it does, only through a separate regulatory proposal. The final regulations should modify the Service's interpretation of the 10-year rule, or if not, provide relief for prior years. The Service should reconsider whether the Proposal's rules for withholding on distributions to non-spouse beneficiaries correctly reflect the Code.... The Proposal's rule regarding a 'hypothetical' RMD should be removed. The final regulations should retain age 21 as the age of majority."

SPARK Institute Reviews the IRS 401(k) Compliance Check Project (PDF)

4 pages. "The SPARK Institute, working with its members, has reviewed the questionnaire and is concerned that many of the questions and the available responses could have significant implications for plan sponsors and result in an audit or enforcement action. Accordingly, therefore, it is critical that plan sponsors fully understand the implications of the questionnaire and the potential consequences of their responses. Plan sponsors should be sure that their responses are complete and accurate to avoid triggering a costly enforcement action."