FTX Bankruptcy Has Chilling Effect on Crypto Use in Retirement Plans
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Fiduciary and Plan Governance FTX Bankruptcy Has Chilling Effect on Crypto Use in Retirement Plans The rapid collapse of the cryptocurrency exchange FTX has some in the retirement industry second-guessing a recent push toward including cryptocurrency in 401ks and other defined contribution retirement plans. Source: Planadviser.com Orphan Accounts Pose Fiduciary Liability to 401k Plan Sponsors It's so easy to pay it no mind. Employees leave the firm but don't take their 401k account with them. Many argue this is the prudent thing for the employee to do since the plan will often pay institutional rates for mutual funds while rolling the assets over into an IRA may be subject to higher retail rates. But what about from the plan sponsor's perspective? Source: Fiduciarynews.com »» Click here for more Fiduciary and Plan Governance Material Items of Special Interest to Service Providers A Rollover Recommendation Is a Securities Recommendation The SEC and FINRA are in alignment with the DOL's position that a recommendation to roll over is, in effect, a securities recommendation. This may explain why the DOL, SEC, and FINRA all expect broker-dealers and investment advisers to have information about the investments held in a participant's account, that is, how can a "sell" recommendation be made without knowing the investments that the recommendation covers? Source: Fredreish.com Rollover Recommendations: Do the SEC and DOL Requirements Align? There are a few differences between the SEC and the DOL guidance that broker-dealers and their registered representatives should know about, including that the SEC rollover guidance applies to a much broader array of retirement plans and accounts, and also that the SEC guidance does not require disclosure about the best interest reasons for the rollover recommendation as does the DOL under PTE 2020-02. Source: Brokerdealerlawblog.com 403b Plans Plan Approval Program Expands to 403b Retirement Plans The IRS and Treasury will let the churches, public schools, and charities that have 403b retirement plans take advantage of some of the same individually designed retirement plan determination letter program used by qualified retirement plans, beginning in June 2023. Source: Thetaxadviser.com A Boon for the 403b: IRS Expands Tax-Favored Approval Process The IRS announced the expansion of one of its programs for approving retirement plans, allowing 403b plans -- which are used by certain public schools, churches, and charities -- to apply for the same tax-favored treatment as qualified retirement plans. As of June 2023, the IRS will allow 403b plans to use the same individually designed retirement plan determination letter program used by 401ks. Source: 401kspecialistmag.com New IRS Revenue Procedure for 403b Plans The IRS has now issued Revenue Procedure 2022-40, allowing the sponsor of an individually designed 403b plan to submit a request for a determination letter. Under this program, for the first time, an individually designed 403b plan will be able to rely on the IRS' approval that the form of the document meets all IRS requirements. Source: Boutwellfay.com »» Click here for More 403b Material Court and Legal Arbitration of ERISA Plan Disputes This article discusses the general enforceability of arbitration clauses in certain disputes, including class actions, with a particular focus on the enforceability of arbitration clauses involving legal claims made under ERISA. It also specifically analyzes the advantages and disadvantages of arbitration provisions for retirement plan sponsors. Source: Wagnerlawgroup.com »» Click here for more Court and Other Legal Issues Legislative and Washington DC What Retirement Plan Sponsors Need to Know About SECURE 2.0 Federal legislation that would substantially impact retirement plan sponsors, service providers, and plan participants appears likely by year-end. Although the contours of a final bill still need to be refined, certain provisions are likely to be included in enacted legislation, dubbed SECURE 2.0. It is not too early for plan sponsors to begin preparations. Here are some steps plan sponsors may want to consider now and when legislation becomes reality. Source: Troweprice.com What Midterm Election Results Could Mean for Retirement Policy The Nov. 8 midterm election will likely shape the future for Social Security and Medicare programs. Source: 401kspecialistmag.com Midterm Election Results Could Delay SECURE 2.0 A shift in Congressional power in Washington to Republicans could delay passage of SECURE 2.0 and push Democrat's ESG and cryptocurrency efforts to administrative tactics, experts say. Source: Planadviser.com Senators Toomey and Cotton Write Warning Letters to ESG Industry Senator Pat Toomey wrote a follow-up letter to twelve ESG ratings and analytics providers on October 31 requesting that they keep documents related to the methodologies for their environmental, social and governance ratings. Six of the twelve provided responses. The other six either have not responded or provided responses that the Toomey considered "incomplete". Senator Cotton sent a more threatening letter to 51 law firms that counsel investors and other actors in the ESG sector. Source: Plansponsor.com »» Click here for more on Legislative and Washington Actions Compliance and Regulatory 401k End of Year Reminder Checklist - 2022 This 401k plan checklist will help you end your plan year smoothly. Source: Consultrms.com What Kind of Payments Can a Hardship Request Cover When Buying a Home? Can a hardship request cover costs directly related to the purchase of a principal residence for the employee including the payoff of outstanding debts if that is what is required for the participant to qualify for the mortgage loan? Experts from Groom Law Group and CAPTRUST answer the question. Source: Plansponsor.com When Is Spousal Consent Required Under a Qualified Retirement Plan? Spousal consent for qualified retirement plans has been in the spotlight recently as a result of the COVID-19 pandemic. In response to the temporary lockdowns in 2020 and the extended period of social distancing that followed, the IRS began to permit electronic consent rather than the standard requirement for a consenting spouse to sign in the presence of a notary public. Spousal consent is only required in certain situations which are reviewed here. Source: Klblawgroup.com Participant Loans: Important Considerations Many retirement plans allow participants to take loans from their accounts. But that entails more than simply deciding to allow participants to do so. That is only the beginning. Some procedures must be followed, and important considerations that flow from that initial choice. Here are some questions and matters concerning plan loans. Source: Asppa.org »» Click here for more Compliance and Regulatory Material Marketplace News Comparative 401k Tool Is Released to Public NAPA Announces the 2023 Top Retirement Plan Advisors Under 40
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