Plan Sponsors Have Lots to Prep for SECURE 2.0 Compliance
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Compliance and Regulatory Plan Sponsors Have Lots to Prep for SECURE 2.0 Compliance The sheer size of the Secure 2.0 Act of 2022, which has more than 90 provisions impacting workplace retirement plans, can make compliance feel overwhelming for many plan sponsors. But those provisions go into effect over 10 years, and most of them are optional, rather than mandatory, so the task of updating the plan design to comply may be more manageable than they expect. Source: Plansponsor.com IRS Requires Most Employee Benefit Plans to File Electronically The IRS has issued final regulations that will require almost all employee benefit plan filings to be made electronically. Source: Wagnerlawgroup.com The Top Five Takeaways From SECURE Act 2.0 SECURE Act 2.0 continues to dominate 401k plan conversations as employers wait on administrative guidance from both the IRS and the DOL. However, although employers do not have to adopt amendments to implement either mandatory or discretionary SECURE Act 2.0 provisions until the end of the first plan year that starts in 2025, a handful of provisions are effective before the amendment deadline. This article addresses five SECURE Act 2.0 provisions many employers are asking about. Source: Sequoia.com Clawbacks -- The Impact on 401k Plans What the heck is a clawback? How does a clawback affect retirement plan contributions? This article will identify operational problems with incentive compensation clawbacks, review the impact on salary deferrals that have been deducted from that compensation and deposited to the plan (including associated employer matching contributions), and provide solutions to prevent operational headaches before they happen. Source: Newfront.com DOL Provides Snapshot of ERISA Enforcement Statistics for Fiscal Year 2022 The Department of Labor's Employee Benefits Security Administration has released a fact sheet concerning its ERISA enforcement results for FY 2022. EBSA oversees 747,000 retirement plans, 2.5 million health plans, and 673,000 other welfare benefit plans, covering more than 152 million workers, retirees, and dependents. Source: Hallbenefitslaw.com Navigating Top-Heavy 401k Tests: Everything You Need to Know in 2023 As a small business owner or HR manager, understanding the 401k top-heavy test is crucial for ensuring your retirement plan remains compliant and avoiding unnecessary penalties and fines. Source: Forusall.com SECURE 2.0 Changes to Retirement Plan Corrections The SECURE 2.0 Act included changes to the Internal Revenue Code and ERISA regarding the correction of inadvertent retirement plan errors. The changes are far-reaching and will make it easier for plan sponsors and administrators to fix retirement plan errors. This article dives into the retirement plan correction changes. Source: Frostbrowntodd.com Acting Labor Secretary Su Says SECURE 2.0 Guidance Coming in "Timely Manner" Su briefly discussed the implementation of the SECURE 2.0 Act in response to a question from Senator Patty Murray. Su said she looks forward to providing guidance in a "timely manner" and specifically highlighted the lost-and-found provision of the legislation, which requires the DOL to create a database in which participants can be matched with old plans they may have lost or forgotten. Source: Planadviser.com »» Click here for more Compliance and Regulatory Material Fiduciary and Plan Governance ESG in Retirement Plans: Clarity but no Certainty After DOL Ruling There were several key themes most were looking for in the DOL's final amendments to the so-called ESG Rule. Now we have the final text, it is more neutral than the version the DOL originally proposed. It was good that the DOL addressed the issue but there are remaining uncertainties around the regulation and its impact on employers offering ESG funds in their retirement plan menus. Source: Tiaa.org »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Mandatory Retirement Not Serving Economy, According to Panel on Longevity Ageism is driving older individuals out of the workforce just when the current economy needs people to work longer, according to the experts at the Founders Summit, an event hosted by AARP AgeTech Collaborative and Primetime Partners. Source: Planadviser.com Understanding How Your Clients Think About Retirement Is Key In 2022, Envestnet commissioned a national research study with The Center for Generational Kinetics to better understand how different generations think about their finances and financial services in general. Those findings, along with other national research findings, can provide powerful insights into each generation's unique perspective. Source: Envestnet.com Can Local Small Businesses Offer a Retirement Plan? New Tax Credits Could Make a Big Difference Retirement plans can provide employers with an essential tool for recruiting and retaining their workforce. Yet, many small employers struggle with the costs of establishing and the complexities of maintaining a retirement plan. With the passage of the Secure 2.0 Act of 2022, small employers have increased tax credits available to cover the startup costs of a workplace retirement plan and to make employer contributions to that plan. Source: Conradsiegel.com Increased Cashouts at Job Separation Highlight Need for Auto-Portability When switching or leaving jobs, many employees are cashing out their 401k savings, despite warnings from financial professionals against incurring the accompanying 10% penalty, according to research recently published in Marketing Science and Harvard Business Journal. Source: Plansponsor.com »» Click here for More Studies, Research, and White Papers Court and Legal DOL Sues Profit-Sharing Retirement Plan of California Consultant A California environmental consultant is alleged by the Department of Labor to have neglected to manage or administer the company profit-sharing plan since the late 1990s or early 2000s, effectively barring the distribution of participants' retirement assets. The complaint, Su v. Environmental Instrumentation Co. et al, was filed on Friday in U.S. District Court for the Northern District of California. Source: Plansponsor.com Proprietary Fund Suit Settles for Cash and Changes Terms of a proprietary fund suit settlement with Mutual of America have been revealed. The settlement comes in a notably short time (the suit was first filed in September 2022), but the settlement notes that, despite that, several actions had already occurred. Source: Napa-net.org Mutual of America Agrees to $2.75 Million 401k Lawsuit Settlement Mutual of America and retirement plan plaintiffs have agreed to terms of a proposed settlement, possibly closing for $2.75 million a 401k lawsuit brought in 2022, documents show, in Goldstein et al v. Mutual of America Life Insurance Co. in U.S. District Court for the Southern District of New York. Source: Plansponsor.com »» Click here for more Court and Other Legal Issues Marketplace News State Street Partners With Annexus for Retirement Income TDF New Retirement Plan Consulting Firm Launches "Bac(k) Office" Solution
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