On July 18, 2024, The Department of the Treasury and the Internal Revenue Service released final regulations updating the Required Minimum Distribution rules. These changes reflect the updates made by the SECURE Act and the SECURE 2.0 Act, impacting retirement plan participants, IRA owners, and their beneficiaries. Here is a summary of the key points.
ADP Inc., Guideline Inc., and Human Interest were among the top recordkeepers in adding defined contribution retirement plans in 2023, with all three pointing toward continued growth in 2024, according to the 2024 PLANSPONSOR Recordkeeper Survey and executive interviews. Recordkeepers overall showed a strong year of DC plan additions in 2023, as compared with the prior year. Tailwinds including employer talent attraction and retention needs, SECURE 2.0 Act of 2022 tax incentives, and state mandates are all driving new plan growth, according to firm executives, with signs they may outdo themselves again by the end of 2024.
A Texas district court will rehear a challenge to the Department of Labor's environmental, social, and governance rule for investing in defined contribution retirement plans after the U.S. 5th Circuit Court of Appeals remanded the case due to a recent Supreme Court decision. In his ruling, U.S. Circuit Judge Don R. Willett cited the Supreme Court overturning of the longstanding Chevron standard, claiming that in initially upholding the DOL's rule, the district court had relied upon the decades-old Chevron deference doctrine.
The IRS issued its highly anticipated final regulations for required minimum distributions on July 19, 2024. These regulations incorporate rules from both the Secure and Secure 2.0 acts. This article covers what to know about the impact on investors who own Roth accounts, IRAs, and employer plans.
Being a retirement plan sponsor can be a bit overwhelming and one of the major reasons that retirement plans are mismanaged is a lack of management. Retirement plan committees, regardless of the size of the plan sponsor, can be an effective method of managing a retirement plan. Like any tool, a plan committee must be used correctly or it ends up becoming more of a problem than it's worth. This article is about how to properly set one up.
It's only been a few years since pooled employer plans (PEPs) became available as an alternative to single-employer 401ks, but a new report from the Center for Retirement Research casts an uncertain future for them. Their research shows that despite the fiduciary benefits of multiple employer plans, small-business owners are often unaware of them, but it may be too soon to judge the plans.
The latest research from the Investment Company Institute shows that 401k plan participants have incurred substantially lower fees for holding mutual funds over the past two decades, offering them higher returns and higher balances in retirement. From 2000 to 2023, the average equity mutual fund expense ratio paid by 401k investors dropped by more than half. The decrease in mutual fund fees should be contrasted against the fact that Americans are paying more for almost everything else.
A New York federal district court judge has ruled that an amended ERISA complaint based on a breach of fiduciary duty against the TIAA may proceed after it was originally dismissed in 2022. The judge agreed that the complaint contained sufficient evidence of TIAA systematically cross-selling its adviser-managed account service, Portfolio Advisor, which came with higher fees for participants who chose this option rather than remaining invested in the plan.
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Collected Wisdom™
Our researchers look for what they think are some of the better resources available to assist you in administering your plan or helping your clients. We group these resources in our COLLECTED WISDOM™ topics to make it easy for you to locate the information you need. Each item in a category contains a summary and date of when it was placed in the group.
We also maintain some older material in these collections for perspective and context.
