"Use Form 4972 to figure the tax on a qualified lump-sum distribution ... you received in 2022 using the 20% capital gain election, the 10-year tax option, or both. These are special formulas used to figure a separate tax on the distribution that may result in a smaller tax than if you reported the taxable amount of the distribution as ordinary income."   MORE >>

"Since 2002, contributions to 457(b) plans no longer reduce the amount of deferrals to other salary deferral plans, such as 401(k) or 403(b) plans. A participant's 457(b) contributions need only be combined with contributions to other 457(b) plans when applying the annual contribution limit.... Consequently, an individual who participates in both a governmental 457(b) plan and one or more other deferral-type plans, such as a 403(b), 401(k), salary reduction simplified employee pension plan, or savings incentive match plan for employees has two separate annual deferral limits."   MORE >>

"Firms should integrate transactional interfaces into homepage/dashboard modeling tools ... Value of dynamic updating capabilities in retirement contribution tool design ... Importance of financial wellness resources."   MORE >>

"Alight Solutions, Bank of New York Mellon and Colgate-Palmolive Co.'s employee relations committee all sought to toss a lawsuit brought against them by a former Colgate-Palmolive employee who had the entire balance of her retirement account stolen.... [The employee] filed a complaint against the companies in July, claiming they violated [ERISA] via a breach of fiduciary duty. This came after an individual impersonating her drained more than $750,000 from her account in March 2020 by successfully changing much of her account information, according to the complaint." [Disberry v. Employee Relations Committee of the Colgate-Palmolive Company, Alight Solutions, LLC, and the Bank of New York Mellon Corporation, No. 22-5778 (S.D.N.Y. complaint filed Jul. 7, 2022)]   MORE >>

"Public pension funds are already reporting big losses in 2022. Things are likely to get uglier. That is because the funds, which manage around $5 trillion in retirement savings for the nation's teachers, firefighters and other public workers, haven't yet factored in second-quarter returns on private equity and other illiquid investments."   MORE >>

"A retiree who owns their home, does not often travel or commute daily, and does not intend to pay for school, has a much different personal inflation rate.... [A] year-over-year budget analysis ... identify any necessary spending adjustments.... [C]onsider alternatives to traditional fixed income within your portfolio.... [Identify] your cash needs and ... [e]nsure you have enough cash on hand to cover these goals ... [A]ny excess could be directed to the portfolio."   MORE >>

"[B]ased on the Brotherston decision and SCOTUS' denial of certiorari, [the author believes] that SCOTUS will ultimately expressly adopt the Restatement's position and rule that market indices and comparable index funds are appropriate for benchmarking purposes in 401(k) litigation.... [If] SCOTUS does adopt this position, then plan sponsors will find themselves in the same position they have found themselves in after SCOTUS' decision in Hughes v. Northwestern University -- utterly defenseless to breach of fiduciary prudence claims."   MORE >>

"The Society of Actuaries (SOA) recently released a retirement planning guide for older retirees entitled, ' Late-in-Life Decisions Guide .' ... [The Financial Fitness calculator (FFC)] could be a better financial planning tool than the 4% Rule ... However, some of the potential shortfalls of the FFC are significant and include: [1] No guidance on reasonable assumptions.... [2] Expenses and income in retirement are generally not linear as assumed by the FFC."   MORE >>

"[F]rom 1975 to 2018, per participant assets grew from $5,634 to $184,432 in DB plans. The same figures for DC plans were from $6,432 to $59,186.... In the public sector, if the U.S. had phased out DB plans,costs to taxpayers would have been much greater. [E]mployers would have had to contribute more than twice the amount to make up the difference between asset accumulation of $184,432 and $59,186."   MORE >>