"This fact sheet issues frequently asked questions about SECURE 2.0 Act of 2022 (SECURE 2.0) that provides for special rules for distributions from retirement plans and individual retirement arrangements (IRAs) and for retirement plan loans, for certain individuals impacted by federally declared major disasters.... [These FAQs] will not be relied on or used by the IRS to resolve a case.... [A] taxpayer who reasonably and in good faith relies on these FAQs will not be subject to a penalty that provides a reasonable cause standard for relief, including a negligence penalty or other accuracy-related penalty, to the extent that reliance results in an underpayment of tax.'

18 Q&As divided into [1] General information; [2] Taxation and reporting of qualified disaster recovery distributions; [3] Repayment of qualified distributions taken for the purpose of purchasing or constructing a principal residence in a qualified disaster area; and [4] Loans from certain qualified plans.

"The SECURE 2.0 Act allows for additional features in various employer retirement plans to encourage use of these plans. The provisions potentially affecting Forms W-2 (including Forms W-2AS, W-2GU and W-2VI) are: [1] De minimis financial incentives ... [2] Roth Savings Incentive Match Plan for Employees (SIMPLE) and Roth Simplified Employee Pension (SEP) Individual Retirement Arrangements (IRAs) ... and [3] Optional treatment of employer nonelective or matching contributions as Roth contributions."

"Today, 19 states have active state-run retirement programs. Most programs have mandates requiring businesses to enroll employees in the state-run program or provide their own privately run 401(k) plan; a few states have voluntary programs or marketplaces.... Here's what you need to know about state retirement programs and 2024 deadlines."

"The Final Rule modifies the Privacy Rule to limit circumstances in which an individual's PHI about reproductive health care may be used or disclosed for non-health care purposes ... The PHI covered by the Final Rule includes information related to reproductive health care services ... that was lawfully obtained."

"On appeal, the states' principal argument was that the exclusions restricted coverage based on diagnosis, not suspect class -- i.e., the exclusions prevented all patients from receiving coverage for excluded treatments based on a diagnosis of gender dysphoria, regardless of the sex or gender identity of the individual patient. The Fourth Circuit rejected the states' argument, holding that it 'elides common sense and is inconsistent with Supreme Court precedent about how to approach equal-protection analyses,' which focuses on 'the group for whom the law is a restriction, not the group for whom the law is irrelevant.' " [ Anderson v. Crouch , No. 22-1721 (4th Cir. Apr. 29, 2024)]

"Plan sponsors should review their services agreements and reach out to their financial services providers to ensure that they come into compliance with the new rule, including full disclosure of any potential conflicts of interest. Plan sponsors should also monitor requests for employee data and other communications between their service providers and their employees and other plan participants -- in particular, communications sent out when an employee is retiring or otherwise separating from service or a participant becomes eligible to take a distribution of benefits for any other reason."

"[E]mployers should take the following next steps: [1] Consider any necessary plan design changes to address the Proposed Rules; [2] Consult with the plan administrator and recordkeeper to confirm any required administrative system updates; [3] Review and confirm operational systems for tracking employee hours and vesting periods; [and] [4] Review service provider contracts for any updates due to the Proposed Rules[.]"

"The average FSA contribution in 2022 was $1,291. The vast majority -- 85 percent -- of accountholders took a distribution in 2022. Among those who did, the average distribution was $1,323.... Roughly half of FSA accountholders forfeited funds to their employer in 2022. The average forfeiture was $441."

"The new rules -- announced in Rev. Proc. 2023-37  -- took effect on Nov. 21, 2023.... The deadline to adopt interim amendments to preapproved plans for changes in law or guidance is now tied to IRS's Required Amendments List.... [T]he deadline for governmental employers to adopt a plan amendment is the later of: [1] The deadline that applies to nongovernmental employers for the particular type of amendment (e.g., discretionary or interim); [2] If legislative action is necessary to adopt an amendment, a date based on the employer's legislative calendar."

"The Federation of Americans for Consumer Choice filed a lawsuit in a Texas federal court Thursday to stop the [DOL] fiduciary proposal from taking effect.... The FACC lawsuit repeats a familiar, and successful, argument from DOL foes: that the department exceeds its authority granted by Congress and runs afoul of precedent set by the Fifth Circuit in its 2018 decision." [Federation of Americans for Consumer Choice Inc. v. DOL, No. 24-0163 (E.D. Tex. complaint filed May 2, 2024)]

"Recent research ... has found only 6% of working Americans ages 18 to 34 correctly identified the full benefits of an HSA ... While offering an HSA option to one's workforce is important, educating younger generations just entering the workforce on the values of an HSA is especially critical."

"[B]efore an incident even occurs, plan sponsors should speak with their vendors about having an incident response plan, which is typically a written document, formally approved by an organization's senior leadership team, that helps the organization mitigate risk before, during and after a security incident.... Once the problem is contained and steps have been taken to mitigate the breach, a sponsor needs to have a plan for how the organization will communicate the issue with its participant base."

"Employers should not stop using noncompetes, at least if and until the Rule actually becomes effective.  ... If the Rule is not enjoined a month before the effective date, employers should: ... [1] Implement stronger NDAs and non-solicitations with workers with noncompetes. [2] Try to limit sharing of confidential information and building of relationships with the least number of people. [3] For people that the company feels a noncompete is essential, consider having an 'interim period' where the worker promises to stay a worker for a few hours a week (likely remotely and just doing transitional duties) upon notice of resignation or termination for a period of time (and during the period of time, you can have a noncompete)."

"While there are benefits for plan sponsors, QACA and EACA arrangements are highly complex due to the specific timing requirements and generally require additional administration. During your review process, it can be extremely helpful to be aware of these complexities before entering into an arrangement."

"[A]dvisors who are considered heavy users of technology tend to outperform other practices in adding new clients and assets under management. Nearly 30% of heavy technology users are identified as being higher-growth practices over the most recent three-year period, compared to just 9% of light users ... [T]he tools that contribute most to improving operational efficiency [include]: [1] e-signature (65%); [2]  CRM (44%); [3] video conferencing (29%)."

"At [the May 1 hearing ] held by the House Energy & Commerce Committee, United CEO Andrew Witty said, 'we are offering to take full responsibility for all notification obligations for everyone involved in this.' [AHIP supports] this approach and agree that guidance from the Office of Civil Rights should clearly state that only Change has an obligation to perform breach notification in this context. That clarity would avoid tens of millions of Americans being left confused, frustrated and inundated by multiple notifications."

"[I]ncreasingly, baby boomers have worked out their own approach to retirement ... they're either working because they have to, they actually want to, or a mixture of both.... [O]lder workers are more likely to be self-employed, allowing them plenty of freedom to manage their own flexible work schedule -- as well as providing mental stimulation and a sense of purpose.... [A] 2016 study ... found a direct correlation between working past retirement age and a longer life expectancy."

"The enormous Baby Boomer generation ... could harm investment markets as they cash out shares and bonds to fund their retirement. The same concern extends to the residential real estate market -- as they downsize their homes.... Encouragingly, there are enough younger folks to possibly offset any Boomer cash-outs. The two generations behind the Boomers are not small and, if history is any guide, those groups will increasingly buy securities and housing."

"Not-for-profits should perform a careful analysis to determine if they are subject to the final rule or if any of their businesses are subject to the final rule before any notices are sent to employees.... [E]mployers concerned with protecting their confidential and proprietary information should not only eliminate non-competes from their employment agreements but also carefully review and revise non-solicit, non-disclosure, and other restrictive covenants to ensure that they are narrowly tailored to protecting the employer's confidential and proprietary information."

"[In] expanding the situations in which disqualification might happen and in increasing the QPAM's regulatory burden, the changes may in some circumstances and for some sponsors increase the costs of finding and retaining a QPAM and increase the possibility that a current and (from, e.g., the sponsor fiduciary's point of view) perfectly appropriate QPAM relationship may be disrupted."

"A contentious congressional hearing that was billed as 'examining the policies and priorities of the [DOL]' ended with a member of Congress calling for the resignation of Acting Labor Secretary Julie Su.... [T]he hearing featured few, if any, questions about the SECURE 2.0 Act, and instead featured numerous questions and criticisms about the DOL's recently finalized fiduciary rule[.]"

"The cyberattack on Change Healthcare that devastated the U.S. health care sector made painfully clear that much more needs to be done to address vulnerabilities that exist throughout the ecosystem. This article offers five actions that can go a long way to improving cybersecurity throughout the sector and make it much more resilient."

"While the Final Advice Regulation does not define when a person makes a 'recommendation,' DOL characterized a recommendation as a 'call to action' and indicated that it intends to the term to have a meaning consistent with the SEC's interpretation of the term as used in Regulation Best Interest.... [1] Most distribution recommendations are investment advice and subject to ERISA's fiduciary responsibility provisions ... [2] ERISA's fiduciary responsibility provisions apply to virtually all recommendations to plan participants regarding IRA investments after a rollover even absent a rollover recommendation."

"In a tense Senate hearing  ... lawmakers sharply criticized UnitedHealth Group's handling of the cyberattack that paralyzed the U.S. health care system ... [S]enators questioned whether the cyberattack of Change Healthcare, which manages a third of all U.S. patient records and some 15 billion transactions a year, was so vast because UnitedHealth is too deeply embedded in nearly every aspect of the nation's medical care.... In the afternoon, House lawmakers outlined their concerns, especially given the corporation's enormous scale."

"[T]here will be lawsuits filed to challenge the fiduciary definition. One of the claims will be that the new definition is, as a practical matter, the same as the fiduciary definition for one-time advice in the Obama-era regulation which was vacated by the Fifth Circuit Court of Appeals in 2018. Let's look at the Obama-era definition and the new one. Then you can decide if they are substantially the same."