"[In a 2020] DOL investigation ... [it] became quickly apparent that the investigators had no idea what most recordkeepers provide to the TPAs regarding both formulaic and ad hoc revenue sharing. They were also surprised that the TPA being reviewed did not assiduously account for every dollar due and received from the recordkeepers. While they knew they wanted to make sure that the fee disclosure was comprehensive and accurate, they really didn't know what was in the realm of possibility nor what they desired within that realm."   MORE >>

"A 6% penalty applies to excess contributions if not timely corrected. This penalty is not a one-and-done thing. It will apply every year that an excess contribution remains in the IRA. The only way to avoid the 6% penalty when an excess contribution occurs is to correct it by the October deadline. Also, if you are just changing your mind about a contribution that you are actually eligible to make, your ability to correct the IRA contribution will end with the October 16 deadline."   MORE >>

"We've known for some time that DOL was uncomfortable with the 'no holds barred' element of brokerage windows ... [ Compliance Assistance Release 2022-01 ] can be seen as an expression by DOL of frustration with that situation, in the context of a particularly controversial asset class, crypto investments, and of its intention to continue look for ways to do something about it.... A similar dynamic is at work in ongoing litigation over DOL's fiduciary advice project -- with respect to which (again) DOL's attempt to change a rule it believes is out of date has been consistently frustrated by the courts but has nevertheless had an effect on the industry." [ ForUsAll Inc. v. DOL , No. 22-1551 (D.D.C. Aug. 29, 2023)]   MORE >>

"A fiduciary acts as a settlor when taking actions such as starting or terminating a plan or when modifying features ... These discussions are privileged because the attorney is representing the company's interest. But when a fiduciary acts in a fiduciary capacity, once a plan is up and running, ... [a]ctions such as investment decisions and determining claims are for the benefit of the participants, and at those times, 'the plan beneficiaries are the attorney's clients,' technically speaking."   MORE >>

"[The authors] examine the implied interest rate assumptions built into quotes from ImmediateAnnuities.com as of September 17, 2023 and compare the quotes and the implied interest rates with the results of the similar exercise ...[in January]. [They] also discuss a few other considerations that may affect your decision to buy a SPIA at this time."   MORE >>

"Living on a monthly budget of around $1,500 might involve relocating to a more affordable city, gardening or growing your own food and embracing a minimalist lifestyle centered around community-driven experiences while cutting back on dining out and personal expenditures. While the idea of living on $2,000 per month might seem daunting to some, for others, it can lead to a comfortable and content, albeit simpler, retirement."   MORE >>

"AI can analyze data, detect patterns, and even make predictions. But can it truly understand a client's needs and wants? Can it empathize with a client who's anxious about retiring or celebrate with a client who's just reached a financial milestone? Can it build trust and create a lasting relationship? The answer is a resounding no."   MORE >>

"Many plan committees are still digesting the cybersecurity guidelines issued by [EBSA] in 2021, only to be confronted by an explosion of concerns over the proliferation of AI apps in the hands of plan participants and AI-enabled systems coming into service with recordkeepers, payroll providers, health systems, and other vendors. Few ?duciary committees have fully realized AI's impact.... This article discusses initiatives that can help ?duciaries and suggests a course of action to benefit from them."   MORE >>

"The justices have scheduled a Sept. 26 conference to determine if they will take the case ... The Supreme Court declined without comment to review petitions about arbitration in ERISA disputes in February 2019 ... and in January 2023 ... In both instances, employers sought to overturn pro-plaintiff rulings by federal appeals courts that said arbitration provisions in individual employment contracts didn't apply to class-action complaints under ERISA.... The Argent case is different because the arbitration agreement is inserted in Envision's employee stock ownership plan, an ERISA-protected defined contribution plan. Argent is the trustee." [ Harrison v. Envision Mgmt. Holding, Inc. Bd. of Directors , No. 22-1098 (10th Cir. Feb. 9, 2023; cert. pet. filed Jul. 7, 2023)]   MORE >>