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401(k) Forced Distributions and Forced IRA Withdrawals

"If involuntary distributions are selected in your plan document, you must follow the mandatory cash-out rules. That means reviewing all terminated participant accounts at least once a year and taking the necessary action to distribute eligible balances. These distributions can occur without the participant’s authorization, as long as you’ve provided at least 30 days’ notice of the pending distribution."

Plan Sponsor Best Practices: Disclosures and Notices

"[1] Understand regulatory requirements ... [2] Provide clear, concise, understandable notices ... [3] Use multiple delivery methods ... [4] Stay ahead of deadlines ... [5] Maintain records of notices ... [6] Be transparent about fees and investments ... [7] Provide relevant information at key times ... [8] Make notices accessible to all participants ... [9] Promote financial education ... [10] Review and update notices regularly ... [11] Ensure a user-friendly format ... [12] Seek professional guidance as needed."

Plan Participant Disclosures and Notices Explained

"[A] chart explains what information is provided and the deadline for each notice or document.... Effective for plan year beginning after December 31, 2022, DC plan sponsors have the option to exclude certain employees from such notices."

Defined Contribution Plan Annual Review: Key Areas of Focus

"[A]nnual recordkeeping requirements ... Plan costs and fees ... Plan design and features ... Regulatory compliance ... Participant communication and education ... [P]lan participation and enrollment ... Audits and financial oversight ... Technology and data integrity ... Investment performance ... Identify opportunities for plan improvements ... Implement outreach efforts."

Why 401(k) Plan Sponsors Need a Strong Cybersecurity Policy

"cybersecurity policy is essential for protecting participant information, ensuring compliance, and most of all, keeping your employees' hard-earned retirement savings safe. With cyber threats constantly evolving, it's imperative to implement a 401(k) cybersecurity strategy. Failing to do so could lead to data breaches, fraud, and serious financial consequences."

401(k) Plans: Merger and Acquisition Insight for Plan Sponsors

"[1] Due diligence: Assessing existing 401k plans ... [2] Deciding on the fate of the 401k plans ... [3] 401k plans: Compliance considerations ... [4] Communication with employees ... [5] Handling investment options ... [6] Understanding potential cost implications ... [7] Fiduciary responsibilities post-merger."

Plan Sponsor Considerations for Roth Employer Contributions

"Even if you currently allow Roth deferrals, you are not required to offer Roth Employer contributions. You can offer this option even if your plan does not offer Employee Roth deferrals. An employee must irrevocably elect Roth treatment for matching and nonelective contributions before they are allocated to their plan account."

New Audit Rules for 2023 5500 Forms

"For plan years beginning on or after January 1, 2023, only participants with an account balance at the beginning of the year ... are counted for purposes of requiring an audit.... If you are still close to the participant count threshold, consider looking at your terminated participants with account balances and make efforts to force out small account balances as your plan may allow."

SECURE 2.0 Provides Simplified Disclosure Rules for DC Plans

"SECURE 2.0 has provided new options for plan sponsors when distributing notices to plan participants.... Effective for plan years beginning after December 31, 2022, plan sponsors of defined contribution plans now have the option to forgo providing notices to those eligible but not participating and with no account balance, providing [certain] conditions are met."

SECURE 2.0: Required Minimum Distributions (RMDs)

"[Notice 2023-54] granted a transitional relief for RMDS for those participants born in 1951 and that have already received an RMD: The IRS is allowing the 60-day rollover rule for RMDs processed from January 1, 2023 to July 31, 2023 for participants born in 1951. Those affected participants (including a participant's surviving spouse) will have until September 30, 2023 to rollover their 'mischaracterized RMDs'. This also allows the participant to rollover the distributed funds back into the plan. Plans will not be penalized for failing to treat the distributions as eligible for rollover."