Given the continuing wave of ERISA litigation, this article has become a mainstay of The Speed Reader. A sample of recent cases is provided below. The most common type of ERISA case for approximately the past fourteen years has involved retirement plan participants’ allegations that plan fiduciaries caused participants to pay excessive record keeping and […]
On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) became law. The CARES Act provides widespread relief to employers and employees via tax credits and other approaches (e.g., extended tax due dates). This article focuses on provisions affecting retirement plans COVID-19 Distributions: The 10% penalty tax under Internal Revenue […]
As a result of COVID-19, on March 27 the IRS made two important announcements for certain retirement plan sponsors. First, the IRS extended the last day of the initial remedial amendment period for 403(b) plans from March 31, 2020 to June 30, 2020. As a result, plan sponsors now have until June 30, 2020 to […]
In addition to the law and IRS guidance discussed above, sponsors of defined contribution retirement plans may wish to consider the impact of COVID-19 on their plans with respect to the following: Reducing or Suspending Employer Contributions: If a plan provides for discretionary employer contributions, although no plan amendment is necessary to reduce or suspend […]
For the second month in a row, the Internal Revenue Service and the U.S. Department of Labor were quiet on the retirement plans front. This was likely caused, at least in part, by their focus on drafting guidance pursuant to the SECURE Act (which I summarized in the January 2020 edition of this newsletter). Thus, […]
Since last month’s edition of The Speed Reader, the Internal Revenue Service and the U.S. Department of Labor have been quiet on the retirement plans front. Perhaps this was a result of their pending work drafting guidance pursuant to the SECURE Act, which was summarized in last month’s edition of this newsletter. Thus, this month’s […]
On December 20, 2019, President Trump signed into law the Setting Every Community Up for Retirement Enhancement Act of 2019 (the “Act”). This constitutes the most comprehensive law in the retirement plans field since the Pension Protection Act of 2006. The Act’s provisions that affect defined contribution plans, such as 401(k) plans and 403(b) plans, […]
On November 6, 2019, via Notice 2019-59, the IRS announced the effect of cost-of-living adjustments on certain 2020 dollar limits for various retirement plans (e.g., 401(k) plans). Many of the limits will increase for 2020 because the increase in the cost-of-living index met statutory thresholds that trigger their adjustment. Here are the most notable figures […]
As the end of 2019 quickly approaches, retirement plan sponsors should promptly consider several important potential tasks. Examples include the following: December 1 Deadline for Certain Plan Communications to Participants: Depending on a plan’s design, one or more of the following annual notices might be required: safe harbor notice, qualified default investment alternative (“QDIA”) notice, […]
On September 23, 2019, the IRS published final regulations governing financial hardship distributions from 401(k) plans and 403(b) plans. As background, while a participant in one of those plans is working for the plan sponsor, his or her ability to withdraw money from the plan is quite limited. One of the permissible in-service distribution events […]