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COVID-19
The $3 trillion bill which passed May 15 includes retirement provisions advocated by the American Retirement Association. While it has already been declared “dead on arrival” in the Senate, that’s not the end of the story.
The House of Representatives approved the “Health and Economic Recovery...
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A $3 trillion stimulus bill released by House Democrats includes retirement provisions advocated by the American Retirement Association—and a whole lot more—though its passage is anything but certain.
The mammoth 1,800-page bill runs the gamut from providing nearly $1 trillion to state and...
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The IRS had some unwelcome news for plan advisors and small businesses that may be taking advantage of forgivable loans under the Paycheck Protection Program.
In short, the IRS is saying no to the potential for a double-tax benefit. The IRS advises in Notice 2020-32 released April 30 that it...
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A controversial call by the IRS on deductibility of expenses under the Paycheck Protection Program is drawing fire from both parties and both houses of Congress.
No less than the chairmen of the congressional tax-writing committees have expressed concern with the IRS’ interpretation denying...
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Just when you thought the rules around COVID-19 distributions couldn’t get any more complicated…
For many households, “COVID-19 distributions” from qualified plans and IRAs may be a welcome backstop against financial challenges of the Coronavirus pandemic. The general rule is that a COVID-19...
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After a rough March, the average 401(k) regained some ground in April.
In March, the average 401(k) account for younger (25-34), less tenured (1-4 years) workers, plunged 7.3%. Older (age 55-64) workers with more than 20 years of tenure also shed 7.3%, according to estimates from the...
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Communicating with retirement plan participants is always important; and aside from law and regulation requiring it, such communications can serve participants well and help make a retirement plan more effective and meaningful. But doing so during a pandemic poses challenges and can require...
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We’ve been through a lot the past several weeks—and doubtless those events have unsettled (if not upended) the retirement plans of many. Or have they?
Recently, the Employee Benefit Research Institute (EBRI) and Mathew Greenwald & Associates, Inc. unveiled the 30th annual Retirement...
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The IRS has provided questions and answers concerning the provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act and how they apply to and affect retirement plans and IRAs.
Specifically, the May 4 Q&As concern Section 2202 of the CARES Act, which provides for special...
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The recently enacted CARES Act has a variety of effects on retirement plans, and not just 401(k)s. A recent blog entry discusses some of its effects on defined benefit plans—including how it affects distributions.
In “Implementing a Coronavirus Distribution Program in Your DB Plan,” October...
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Recent guidance clarifies that retirement contributions for unincorporated sole proprietors are excluded from payroll costs in calculating the maximum loan amount under the Paycheck Protection Program (PPP)—and so can’t be forgiven under the terms of that program.
Specifically, the Small Business...
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The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) has issued “deadline relief and other guidance” related to the impact of the Coronavirus outbreak—including expanded “good faith” application of electronic delivery.
EBSA Disaster Relief Notice 2020-01 extends the time...
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ASPPA provides extensive coverage concerning a host of aspects of the pandemic and its consequences for plan sponsors, administrators, service providers and participants. This includes how developments resulting from it have affected plans and participants, and how they can be addressed; discussion...
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Considering the recent market volatility and related economic fallout, new research by EBRI finds that the impact still appears to be recoverable.
In an April 21 Issue Brief, “Impact of the COVID-19 Pandemic on Retirement Income Adequacy: Evidence from EBRI’s Retirement Security Projection Model...
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Though I’m naturally inclined to look for the good in things, you can put me in the category of folks concerned about throwing wide open pre-retirement access to retirement accounts.
It has been a concern of mine since the first time we did so (Hurricane Katrina), then mostly because it...
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Update: President Trump signed the Paycheck Protection Program and Health Care Enhancement Act (H.R. 266) into law on April 24, 2020.
The House of Representatives on April 23 approved a $484 billion COVID-19 stimulus bill which includes funding that can be used to help pay retirement benefits. The...
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Recordkeepers have acted quickly to incorporate social distancing and follow stay-at-home orders in response to the Coronavirus pandemic—including a whopping 98% of staffers working at home—a new survey finds.
That’s a huge jump from the 20% reported three months ago, according to a summary of the...
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What could getting to the chocolate center of a hard candy have to do with an expanded loan repayment period? Read on.
Some of you (older) readers might remember the Tootsie Roll Pop ad where a scholarly looking owl was asked how many licks it takes to get to the center of a Tootsie Roll Pop. One...
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The California Secure Choice Retirement Savings Investment Board on April 15 decided to extend the deadline for employers with 100 or more employees to register with CalSavers, the state-run retirement program for employees whose employers do not offer a retirement plan.
The extension will give...
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A new survey of plan sponsors finds notable decision gaps between large and small employers in their adoption of the provisions of the CARES Act.
Considering the breadth and potential depth of those retirement plan options now on the table, it is perhaps not surprising that nearly half (47.4%)...
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