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Defined Contribution Plans

Plan professionals may find it useful to know that plan sponsors continue to make participants’ retirement security a priority, and are boosting their work to enhance it.  JP Morgan, in its fifth Defined Contribution Plan Sponsor Survey, which provides the results of an online survey of 788... READ MORE
The U.S. retirement system is a success—but we still can do better. That was the message from an expert panel that recently examined the gaps in that system and made suggestions regarding how to fill them.  Pete Swisher, Managing Partner at Group Plan Systems, and Annie Messer, President, Member... READ MORE
The IRS has issued initial guidance to help employers with implementation of pension-linked emergency savings accounts (PLESAs). Authorized under the SECURE 2.0 Act of 2022, PLESAs are individual accounts in defined contribution plans—designed to permit and encourage employees to save for... READ MORE
There is a “common wisdom” in our business that suggests that all plan sponsors are, more or less, alike; that large plans are the inevitable early adopters of trends that, sooner or later, trickle down to plans of all sizes. Consequently, those who make their living trying to discern trends and... READ MORE
Call it the not so Solo 401(k). We’ve received questions from some American Retirement Association (ARA) members regarding the impact of the long-term part-time employee rules (LTPTE rules) on Solo 401(k) plans. Many sponsors of Solo 401(k) plans were given advice, and established plans with the... READ MORE
An increasing body of research and results seem to confirm that state-sponsored retirement plans—and auto-IRAs specifically—close the coverage gap, not only by providing a public option but also by encouraging higher private plan adoption. Currently, 14 states have a mandate in place, with another... READ MORE
The newest digital edition of ASPPA’s members-only magazine has been posted online! You have a license to thrill—about the 2023 ASPPA Annual and the TPA Growth Summit! In this issue’s cover story, Genelle Brakefield and Melissa Terito discuss the highs and spies of those events. In our feature... READ MORE
The IRS on Dec. 20, 2023, issued the 2023 cumulative list of changes in plan qualification requirements for pre-approved defined contribution plans. The changes are contained in Notice 2024-03. The 2023 Cumulative List is intended to assist providers applying to the IRS for opinion letters for the... READ MORE
Generation Z—the youngest generation in the workforce—may also be the most interesting regarding retirement and preparing for it.  Studies reveal a mix—cacophony?—of behaviors and attitudes among its members that suggest it is a group that may be receptive to a range of approaches in working to... READ MORE
Reps. Darin LaHood (R-Ill.) and Linda Sánchez (D-Calif.) introduced a bill on Dec. 13 that would allow retirement savers to roll over their Roth IRA savings into a Roth workplace retirement plan such as a Roth 401(k), Roth 403(b), or Roth 457(b). The bipartisan bill, which the American Retirement... READ MORE
  Listen on iTunes | Listen on Spotify | Listen on Google Podcasts What did the Setting Every Community Up for Retirement Enhancement (SECURE) Act’s passage in 2019 do for lifetime income in retirement plans, and what lessons can be learned from the success of pension risk transfer? We... READ MORE
More good news on (closing) the retirement plan coverage gap, specifically related to state auto-IRA mandates. The American Retirement Association has long argued—and an increasing body of research confirms—that state-sponsored retirement plans close the coverage gap, not only by providing a... READ MORE
Recently, I came across an announcement that IBM was making changes to its 401(k). More specifically that, effective next year they were going to replace their matching contribution in their 401(k) with an employer contribution to a cash balance plan.[1] In the days that followed, the news was... READ MORE
The IRS on Dec. 8 announced that there will be no changes to the Required Amendments (RA) List for individually designed plans qualified under Internal Revenue Code (IRC) Sections 401(a) and 403(b) for 2023. The IRS made the announcement in Notice 2023-79.  The RA List establishes the end of the... READ MORE
In a positive sign that lawmakers are committed to fixing several errors contained in the SECURE 2.0 Act, the House and Senate have just released a draft technical corrections bill, including changes to allow catch-up contributions and provide parity for Starter 401(k)s championed by the American... READ MORE
Bills before the Massachusetts House and Senate that would expand the Massachusetts Defined Contribution CORE Plan are moving again.  The legislation, introduced early in 2023, has been largely dormant since summer; however, committees in both chambers have given the measures a nod.  About the... READ MORE
The guidance the IRS just issued in Revenue Procedure (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. Here’s a look at some of the key changes, which generally became effective on Nov. 21, 2023, with... READ MORE
While contribution levels have remained consistent, a troubling trend is that many individuals increasingly have been tapping their retirement savings through hardship withdrawals or loans.  This is according to the latest data from Fidelity Investments’ Q3 2023 retirement analysis, which shows... READ MORE
The IRS in Revenue Procedure (Rev. Proc.) 2023-37 has issued fresh guidance on qualified pre-approved plans and 403(b) pre-approved plans which combines, conforms, clarifies, and updates rules for those plans set forth in prior revenue procedures.    Rules for Pre-Approved Plans Rev. Proc. 2023-... READ MORE
The IRS has released a draft of the Form 1099-R to be used in 2024. This is an early release draft of the form, as well as its instructions, which the IRS is providing only to inform taxpayers, including benefits recipients.  The form is used to provide information to recipients about... READ MORE

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