DOL Likely to Address Fiduciary Rule Again Next Year
|
In This Issue
Items of Special Interest to Service Providers DOL Likely to Address Fiduciary Rule Again Next Year Abstract: The agency released a regulatory agenda on Thursday that indicates that it will consider "regulatory options" to respond to the U.S. Fifth Circuit Court of Appeals decision in March to vacate the rule, which would have required brokers in retirement accounts to act in the best interests of their clients. The deadline for a proposal is September 2019. Source: Investmentnews.com (registration may be required) 401k Recordkeepers Seek New Revenue Streams Abstract: Recordkeepers of defined contribution plans have begun seeking new sources of revenue, largely to defray relentless fee compression that's squeezing their bottom line, according to retirement plan advisers. Source: Investmentnews.com (registration may be required) Abstract: The legal standards for broker-dealer firms and their representatives, particularly in the retirement market, continue to be in flux. BDs were among those most affected by the promulgation in 2016 of the DOL fiduciary rule under ERISA, which undertook to switch their legal status in the retirement market from securities selling firms to unconflicted fiduciary advisers. Thus, BDs are among those most affected by the vacatur of that rule. With the SEC "best interest" standard of care proposal, however, the regulatory environment continues to evolve. Article looks at the overlapping layers of regulation to which BDs could be subject in the retirement market. Source: Eversheds-sutherland.com Broker-Dealers as Fiduciaries After the DOL Rule Vacatur Abstract: The purpose of this 14-page article is to explain a broker-dealer's obligation when it provides recommendations to accounts subject to ERISA and the Code post-vacatur. Additionally, it looks at where broker-dealer activities may be headed considering the SEC's proposed Regulation Best Interest and compare that to what is required under ERISA and the Code. Many broker-dealers, particularly if they provide invest. advice, will find complying with an SEC "best interest" standard and the fiduciary and prohibited transactions of ERISA and the Code quite challenging. Source: Groom.com Insight: Studies, Research, and White Papers Seven Attributes of an Excellent DC Plan Abstract: How does our retirement plan compare to others? This is a common question when an organization evaluates key characteristics of its defined contribution retirement plan. Plan sponsors and their advisors often benchmark their plans against industry averages to see how they measure up. But, is that what they should strive for -- being average -- or should they aim higher? Source: Russellinvestments.com »» Click here for More Studies, Research, and White Papers 403b Plans IRS to Focus on 403b Plan Rules in 2019 Abstract: A Program Letter from the Tax Exempt & Government Entities (TE/GE) Business Operating Division of the IRS offers a heads up to what retirement plan sponsors can expect from the IRS in 2019. Included is an examination of 403b plans for universal availability, excessive contributions, and proper use of catch-up contributions under IRC Section 414(v). Source: Planadviser.com »» Click here for More 403b Material Court and Legal Kaleida Health Faces 403b, 401k Plan Fee Lawsuit Abstract: The complaint specifically calls out the 11 T. Rowe Price target-date funds offered by the plans, saying they are all adviser or retail class funds, as opposed to investor or institutional class funds. Source: Planadviser.com Appellate Panel Finds Retirement Assets Acquired in Divorce Not Protected in Bankruptcy Abstract: A three-judge panel of the United States Bankruptcy Appellate Court for the Eighth Circuit has ruled that 401k plan and IRA assets acquired by a former spouse in a divorce proceeding are not retirement funds that qualify as exempt under federal law. Source: Ascensus.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC Abstract: The president's executive order put multiple employer plans front-and-center. Pentegra's Pete Swisher fills us in on what happens now. Source: 401kspecialistmag.com OMB Finishes Review of DOL Proposal to Establish Open MEPs Abstract: The text of the regulation is still forthcoming, but the Office of Management and Budget has completed its review; so far, we know the regulation is viewed as "major" and "economically significant." Source: Planadviser.com »» Click here for more on Legislative and Washington Actions Compliance and Regulatory IRS Lays Out Employee Plan Program Priorities for 2019 Abstract: A program letter from the heads of the IRS's Tax Exempt & Government Entities (TE/GE) division provides an update on the compliance, data, process and casework strategies the division plans to focus on in the coming year. Source: Ntsa-net.org 2018 Year-End Checklist for Plan Sponsors Abstract: As the end of the year approaches, plan sponsors must ensure that they are preparing for proper adherence to regulatory and legislative requirements. ERISA compliance can be a tedious, complicated, and time-consuming process. This checklist will help cover some of the most important aspects that all sponsors should keep in mind to make the year-end process less challenging. Source: Planpilot.com Form 5500 Instructions: Five Steps to Filing Correctly: Updated Abstract: If you're searching for Form 5500 instructions, you're probably newly responsible for your company's 401k. Or you're just looking for a quick refresher to help you properly file your form, so you can get back to more important things. This article will walk you through five easy-to-follow steps for successfully submitting Form 5500. By the end of this post, you should be well equipped to quickly get your Form 5500 out the door. Source: Forusall.com Top Five 401k Compliance Mistakes and Best Practices Abstract: A series of articles discussing the five most common compliance mistakes made by 401k plan administrators and fiduciaries, the potential liability associated with such mistakes, and steps you can take to avoid making them yourself. Source: Benefitsbclp.com 401k Match on Student Loan Repayments: Godsend or Mixed Blessing? Abstract: In a Private Letter Ruling, the IRS has recently enabled employers to make a matching contribution to their 401k plan on behalf of eligible plan participants who, instead of contributing to the 401k, make certain qualifying student loan repayments instead. What's the catch? Well, it turns out there are lots if you plow ahead and begin offering such a matching program without understanding all the specifics. Source: Kushnerco.com »» Click here for more Compliance and Regulatory Material Marketplace News Invesco to Acquire OppenheimerFunds Carroll Consultants Merges With Cafaro Greenleaf USI Consulting Group Hires Bill Tracy as VP, Retirement Services »» Click here for More Marketplace News
This eNewsletter is a digest of information published by a variety of web-based sources on 401k and related issues and is published as a service to our users. 401khelpcenter.com, LLC is not the author of the material unless specifically noted. Articles are copyrighted to their publishers. If you believe that your work has been copied in a way that constitutes copyright infringement, please contact the source site immediately. Hyperlinks in this document are provided as a convenience and we disclaim any responsibility for information, services or products found on websites linked hereto. All links were tested before this eNewsletter was e-mailed to you to ensure that they are still functional, but publishers do move or delete articles. Therefore, we can't guarantee that the links provided will remain operational. 401khelpcenter.com does not endorse, approve, certify, or control this material and does not guarantee or assume responsibility for the accuracy, completeness, efficacy, or timeliness of the material. Use of any information obtained from this material is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by 401khelpcenter.com. Opinions expressed are those of the author of the article and do not necessarily reflect the positions of 401khelpcenter.com. THIS NEWSLETTER IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE INVESTMENT, TAX, ACCOUNTING, OR LEGAL ADVICE. Copyright © 2018 by 401khelpcenter.com, LLC. All rights reserved. No reproductions without prior authorization, but you are free to email this copy (in its entirety) along to colleagues or clients. This newsletter may not be posted to any website. 401khelpcenter.com, LLC
|
