10 pages; Nov. 28, 2023. "Beginning on December 29, 2022, the 10% additional tax on early distributions will not apply to a corrective IRA distribution.... The additional tax on early distributions doesn't apply to qualified disaster distributions nor does it apply to qualified disaster recovery distribution."   MORE >>

"Use with the December 2019 revision of Form 1098-Q .... What's New: [1] Increased dollar limitation on premiums.  ... [2] Repeal of 25% premium limit.... [3] Divorce guidelines.... [4] Short free look period permitted."    MORE >>

"Most importantly, the proposed regulations tell us who is not a LTPT employee.... The proposed rules do not include any provisions similar to the break in service rules under Code Section 410(a)(5).... [T]he proposed regulations confirm that employers may elect to exclude LTPT employees from [certain] nondiscrimination and coverage tests  ... [T]he proposed rules clarify that LTPT employees may be excluded from the top-heavy vesting and benefit requirements ... at the election of the employer."   MORE >>

"The guidance ... in [ Rev. Proc. 2023-37 ] on qualified and 403(b) pre-approved plans made some significant changes in order to conform, clarify, and update the rules.... [1] Changes that apply to all pre-approved plans ... [2] Changes for qualified pre-approved plans ... [3] 403(b) pre-approved plans ... [4] Remedial amendment cycles ... [5] Effective date."   MORE >>

"The [DOL's] proposed regulation defining fiduciary investment and insurance advice ... includes three distinct definitions.... The most controversial of these proposals is the new definition of non-discretionary investment advice. If an investment adviser, broker-dealer, or insurance agent ('investment professional') satisfies that definition, the investment professional will be a fiduciary under ERISA and the Internal Revenue Code."   MORE >>

"Differentiating itself from some of its sister circuits, the Second Circuit did not find that a prohibited transaction claim requires explicit allegations of self-dealing or disloyal conduct ... [The] court disagreed with plaintiffs that exceptions to prohibited transactions are an affirmative defense to be raised by the plan sponsor, even though a number of other courts, including the Eighth Circuit, have found that the text of ERISA supports treating the Section 408 exemptions as such. Rather, the Second Circuit understood the exceptions spelled out in Section 408 as necessary elements of a prohibited transaction claim under ERISA Section 406[.]" [ Cunningham v. Cornell Univ. , No. 21-0088 (2d Cir. Nov. 14, 2023)] MORE >>

"In a LIMRA survey of private-sector plan sponsors with at least 10 full-time employees, almost half (49%) of those that do not offer an in-plan annuity in their DC plan say that they have considered adding one at some point. About 3 in 4 claim that they will make this decision within the next 12 months[.]"   MORE >>

"[M]ost (97%) corporate pension plans can achieve full funding without a significant draw on corporate cash, based on the respective firms' latest disclosures as well as market and interest rate movement so far in 2023.... 62% of companies' pension plans would be fully funded in less than 10 years with a contribution rate of only 1% of corporate cash flow, while an additional 35% of companies' pension plans could be fully funded in less than 10 years at a 3-5% contribution rate."   MORE >>

"Commit to education ... Delegate tasks appropriately ... Reflect your company's diverse demographics ... [D]ocument your decisions and activities."   MORE >>

"The SECURE Act's elimination of RMDs from Roth 401(k)s allows for more strategic and personalized approaches to withdrawals, tax planning, and legacy building."   MORE >>

"The latest guidance says that 'other substantive conditions' must be considered, in addition to retirement eligibility. These include a market condition, actual retirement, or the satisfaction of the requisite service period. While the language remains ambiguous, it does appear now to distinguish between retirement eligibility and actual retirement. Accordingly, for awards that provide for accelerated vesting on retirement, issuers can now value awards during the vesting period through to the date of an actual retirement rather than merely the retirement eligibility date."   MORE >>