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Retirement Income
“Best condition this century.” Or, “improved” but “fragile.” Both are characterizations of the state of pensions in 2023; which applies depends on which pension system one is talking about.
Better, But…
State and local pension plans saw improvement in 2023, but there is still plenty of room for...
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Like a snowflake dancing on the breeze uncertain where to land, how private-sector pension plans fared was a bit indeterminate in December, according to a variety of analysts.
This continues the neither-fish-no-fowl results reported in November and that have held sway since August, with some...
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The Pension Benefit Guaranty Corporation (PBGC) has updated the instructions for filing premiums as well as the portal through which they can be filed.
Rules Are Rules
Sections 4006 and 4007 of ERISA and the PBGC’s Premium Regulations require that premiums be paid to the PBGC; every plan covered...
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With an increase in longevity and the demise of corporate pension plans, it is hardly a surprise to note there are more “older” Americans in the workforce, at least when analyzing demographic trends in recent decades.
Pew Research Center recently did just that—quantifying how quickly the cohort is...
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A new study finds that two-thirds of people are confident they will be able to maintain a comfortable lifestyle in retirement, but diving deeper into the data shows that sentiment varies dramatically across demographic segments.
Overall, roughly 1 in 4 Americans (24%) strongly agree they are...
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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...
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New results from the Retirement Clearinghouse’s Auto Portability Simulation (APS) model further reveal the potential for auto portability to dramatically increase retirement savings.
Based on new assumptions that increase the model’s predictive accuracy, the firm’s resulting paper—Revisiting...
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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...
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Required minimum distributions (RMDs) are more than regulatory requirements—they affect real people. In its latest issue of Employee Plans News, the IRS provides a refresher concerning the application of the RMD rules regarding plan beneficiaries.
Spousal Beneficiaries
Spousal beneficiaries...
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The Pension Benefit Guaranty Corporation (PBGC) reports that in 2023 it changed its actuarial valuation methods, but at the same time a report by the Office of the Inspector General (OIG) warns that the PBGC has more work to do with its financial recordkeeping.
Actuarial Changes
The PBGC in its...
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A report by The Pew Charitable Trusts released on Dec. 22 revealed that state automated savings programs in the United States have collectively reached over $1 billion in assets as of November. This development is part of a broader initiative to assist private sector workers, especially those...
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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...
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The IRS has issued a reminder that people born before 1951 need to take required minimum distributions (RMDs) from funds held in IRAs and other retirement plans by the end of the year. And in so doing, it provides an opportunity to in turn remind participants as well as clients whose participants...
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The IRS has just released new guidance in the form of questions and answers addressing several key provisions contained in the SECURE 2.0 Act of 2022.
The IRS advises that the notice (Notice 2024-02) is not intended to provide comprehensive guidance as to the specific provisions of the SECURE 2.0...
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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...
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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...
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The IRS on Dec. 18 issued tables of covered compensation under Internal Revenue Code (IRC) Section 401(l)(5)(E) and the Income Tax Regulations thereunder for the 2024 plan year. The tables are contained in Revenue Ruling (Rev. Rul.) 2024-01.
Rev. Rul. 2024-01 states that for purposes of...
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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...
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When participants earn benefits in a defined benefit plan (DB plan), they can also earn the permanent legal right to receive those benefits in the future. This can occur after a participant reaches certain milestones, such as attaining a certain age, or working for a specified number of years. This...
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We see it happen on a regular basis. Usually as the result of a miscommunication, a retirement plan sponsor makes an erroneous contribution to the plan. This can cause unintended and unwanted consequences, often including nondeductible and/or disallowed amounts. What can be done?
Contributions to...
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