Viewing SECURE 2.0 Through a 403b Lens
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In This Issue
403b Plans Viewing SECURE 2.0 Through a 403b Lens The SECURE 2.0 Act of 2022 continues the trend by making a handful of changes specifically for 403b plans. SECURE 2.0 also makes changes for defined contribution plans, in general, apply to 403b plans. This article gives a high-level overview of the SECURE 2.0 provisions affecting 403b plans and their sponsors. Source: Mercer.com »» Click here for More 403b Material Fiduciary and Plan Governance Small Things That 401k Plan Sponsors Shouldn't Neglect When it comes to 401k plan sponsors, little things can cost employers a lot of grief on an Internal Revenue Service or Department of Labor audit. This article is about a few little things that plan sponsors should focus on. Source: Jdsupra.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, and White Papers Employer Contributions Reach Record-High Levels: Fidelity With U.S. employers adding one million jobs to the economy in the first quarter of 2023, Americans appear to be refocusing on investing in their future, according to Fidelity's latest retirement trends analysis. Source: Asppa.org How Plan Sponsors Can Shift Focus to Decumulation The Senate Committee on Health, Education, Labor, and Pensions sent a letter to the Department of Labor on May 30 urging it to "effectively and expeditiously" implement SECURE 2.0. It also urged the DOL to prioritize six provisions related to the committee's mission. Source: Plansponsor.com »» Click here for More Studies, Research, and White Papers Items of Special Interest to Service Providers Achieving Fiduciary Excellence In today's increasingly competitive environment, more advisory firms are seeking to differentiate themselves and grow AUM by formalizing their commitment to fiduciary excellence. 139 investment advisory firms from around the world have done just that, achieving certification by the Centre for Fiduciary Excellence. This report provides an inside look at how those advisory firms operate their practices. Source: Broadridge.com Mapping Out the Data and Outreach Stages of 401k Prospecting Successful 401k prospecting is about recognizing opportunities and knowing how to advance each stage of the sales relationship. This article dissects the stages of data collection and outreach as part of the process. It also covers identifying ideal prospects by collecting data to optimize effective outreach opportunities. Source: 401k-marketing.com The DOL's Fiduciary Interpretation and the Florida Court Decision The DOL's fiduciary interpretation and PTE conditions were opposed by some in the financial services industry. As a result, two lawsuits were filed in Federal Courts, one in Florida and one in Texas. The Florida court has reached its conclusion; the Texas lawsuit is still pending. Fred Reish discusses them. Source: Fredreish.com Court and Legal Fraudster's 401k Can Be Used for Restitution Evan Greebel, pharma bro Martin Shkreli's lawyer and co-conspirator, lost his bid to protect his 401k from garnishment to pay restitution to his victims. The Supreme Court declined to hear the case, effectively ending Greebel's quest to keep his retirement plan free from a $10.4 million judgment found by a lower court. Source: Napa-net.org »» Click here for more Court and Other Legal Issues Legislative and Washington DC Senate Committee Urges DOL to Implement Six Specific SECURE Provisions The Senate Committee on Health, Education, Labor, and Pensions sent a letter to the Department of Labor on May 30 urging it to "effectively and expeditiously" implement SECURE 2.0. It also urged the DOL to prioritize six provisions related to the committee's mission. Source: Asppa.org »» Click here for more on Legislative and Washington Actions Compliance and Regulatory IRS Notice 2023-43: Self-Correction Changes From SECURE 2.0 Are Immediately Effective On May 25, 2023, the IRS issued Notice 2023-43, which provides interim guidance on the interpretation and application of Section 305 while the updated EPCRS procedure is pending. And it contains good news. Source: Ferenczylaw.com Decoding IRS Notice 2023-43: Easier 401k Error Fixes IRS Notice 2023-43 was released on May 25, 2023, and provides guidance on changes stemming from Section 305 of the SECURE 2.0 Act of 2022. This part of the law is about the Employee Plans Compliance Resolution System. The EPCRS helps Plan Sponsors fix mistakes in employee benefit plans, like mistakes identified during 401k plan audits. This article discusses the main differences that IRS Notice 2023-43 introduces compared to the existing rules before the SECURE 2.0 Act. Source: 5500audit.com SECURE 2.0 Guidance Process Begins: Self Correction for Eligible Inadvertent Failures Is First Up The IRS has issued interim guidance to address the changes made by section 305 of SECURE 2.0 to the self-correction program under the IRS Employee Plans Compliance Resolution System. While the IRS will issue guidance completely restating the rules of EPCRS to reflect the new statutory changes within two years, Notice 2023-43 provides initial guidance, in question-and-answer format, regarding what qualification failures can be self-corrected now. Source: Groom.com 401k Plans: Can Interns be Excluded? As summertime rolls around and employers prepare for a fresh crop of interns, the question may arise whether those interns can be excluded from participating in the 401k plan. The answer is generally yes, but different conditions must be satisfied depending on whether the intern job classification results in an indirect service requirement. Source: Haynesboone.com 2023 Expert Guide to Safe Harbor Match Options This article dives into the range of Safe Harbor Match options, alternatives to the traditional Safe Harbor Match, and how to choose the Safe Harbor design that best fits your goals. It also discusses four key strategies you can use to decrease Safe Harbor costs and improve the chance your plan achieves strategic company goals. Source: Forusall.com A description of the 401k safe harbor rules, updated for 2023, as well as an explanation of the advantages and disadvantages of this plan design option. Source: Consultrms.com The New Roth Catch-up Requirement Needs Clarification-What Are Plan Sponsors to Do? Beginning in 2024, SECURE 2.0 significantly changes the rules for catch-up contributions. Although the majority of non-governmental plans already permit Roth contributions, there is no precedent for this new requirement and a great deal of confusion about plan sponsor options for compliance. Source: Cohenbuckmann.com »» Click here for more Compliance and Regulatory Material Marketplace News Vestwell Partners With Payroll Provider Gusto on Integrated 401k Franklin Templeton to Buy Putnam Investments
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