33 pages; For use in preparing 2023 Returns. "This publication explains the federal income tax rules for social security benefits and equivalent tier 1 railroad retirement benefits.... [It] covers  ... [1] Whether any of your benefits are taxable. [2] How to report taxable benefits. [3] How much is taxable. [4] How to treat lump-sum benefit payments. [5] Deductions related to your benefits, including a deduction or credit you can claim if your repayments are more than your gross benefits."   MORE >>

"The regulations provide guidance on changes the Pension Protection Act of 2006 (PPA) made to the prescribed interest rate and mortality table and other guidance, including rules regarding the treatment of preretirement mortality discounts and Social Security level income options. These regulations update the existing regulations to reflect ... the new interest rates and mortality tables set forth in IRC Section 417(e)(3) and the exception from the valuation rules for certain applicable DB plans set forth in IRC IRC Section 411(a)(13)." MORE >>

"SECURE 2.0 allows an automatic portability provider to receive a fee in connection with executing an automatic portability transaction if certain conditions are met ... The proposed regulations detail the conditions that must be satisfied for an automatic portability transaction to be covered by the new statutory exemption."   MORE >>

"[ Notice 2024-02 ] covers a wide array of SECURE 2.0 Act provisions; however, some of the more complex items, such as the 2026 mandatory flip from 401(k) plan deferrals to Roth deferrals for certain highly compensated employees or student loan matching contributions, are not included."   MORE >>

"The regulation would apply to plan years starting on or after Jan. 1, 2024, which is when 401(k) plans must start allowing LTPT employees to participate. The proposal doesn't address Section 403(b) plans that are covered by ERISA, which must comply with SECURE 2.0's LTPT eligibility requirements starting in the 2025 plan year. IRS is accepting comments on the proposal through Jan. 26, 2024, and will hold a public hearing on March 15, 2024."   MORE >>

"26 states, led by Utah and Texas ... said Chevron deference does not apply to the case because federal law clearly requires retirement plans to act 'solely and exclusively' for the financial benefit of participants. But if the 5th Circuit finds otherwise, it should wait for the Supreme Court to rule on the fate of Chevron deference before deciding the case, the states said in their filing." [ Utah v. Walsh , No. 23-0016 (N.D. Tex. Sep. 21, 2023; on appeal to 5th Cir. as Utah v. Su, No. 23-11097; opening brief for appellants filed Jan. 18, 2024)]   MORE >>

"This decision was in contradiction to decisions from some other circuits which treat prohibited transaction exemptions as an affirmative fact-intensive defenses whose applicability can’t be determined at the motion to dismiss stage. (including last year’s Ninth Circuit’s decision in the AT&T excessive fee class action)." [ Cunningham v. Cornell Univ. , No. 21-0088 (2d Cir. Nov. 14, 2023)] MORE >>

38 pages. "Based on the survey responses, [Oxford estimates] that the upfront cost for the proposed 2023 Fiduciary rule will be approximately $238 million, over six times the DOL's estimate of upfront costs ($37 million). [The] estimate of the ongoing annual cost of the rules, $2.5 billion, is almost 11 times the DOL's estimate ($216 million).... [T]he DOL's evidence of potential benefits ... at best ... are speculative, with magnitudes that are unclear."   MORE >>

"A [ recent survey ] ... estimated that the compliance costs associated with the [DOL's] fiduciary proposal could grossly exceed the estimates provided by the DOL.... [A] study from August 2017 published by Deloitte , shortly after the vacated rule went into effect ... found that 11 of 21 firms had to limit or even eliminate advisory services, such as removing advice from brokerage windows, as a consequence of the 2016 rule."   MORE >>

"A higher-for-longer market environment presents challenges and opportunities for sponsors and participants and has sponsors rethinking retirement plan menus. Inflation concerns and competing financial priorities have dented retirement confidence but also provide an opportunity for sponsors to clearly define their plan objectives.... With yield at the highest levels in years, fixed income will be in focus for 2024 ... In a changing market environment, some companies are reevaluating how they provide retirement benefits in ways we have not seen in years."   MORE >>

"[T]he Valuation Creep results from the implicit assumption adopted by the Trustees and system's Chief Actuary that system revenue will equal system income for years after the 75-year projection period. This has been an unreasonable assumption since 1983 and, in [the authors'] opinion, should be fixed and its negative effect on the system's funding should be acknowledged by the Academy."   MORE >>

"[This article provides] a high-level list of post-closing integration considerations with a focus on qualified defined contribution retirement plans and health and welfare plans."   MORE >>

"In an extreme case, a couple with high prescription drug expenditures will need to have saved as much as $413,000 to have a 90% chance of having enough money to cover their health costs in retirement ... [A] 65-year-old man enrolled in a Medigap plan with the highest prescription drug expenditures in retirement will need to have saved $215,000 in order to have a 90% chance of having enough money to cover premiums and median prescription drug costs, and a 65-year-old woman will need to have saved $252,000."   MORE >>