COLLECTED WISDOM™ on Compliance and Regulatory Related Issues

This page gathers relevant information for 401k plan managers, sponsors, administrators, recordkeepers and others with plan fiduciary and administrative responsibilities. It covers many aspects of compliance and regulatory related issues.

This archive contains not only the most current material on the topic, but also older items that are still relevant, provide background, perspective or are germane to the topic.

If you find a broken link or an items that you feel is outdate, irrelevant or no longer appropriate, please let us know.

Roth Catch-Up Mandate Compliance and Deemed Election Examples

Starting January 1, 2026, High Earners (also referred to as Highly Paid Individuals) who are eligible for catch-up contributions must do so on a Roth basis. Before discussing the administration of this new requirement, it's important to clarify the compensation thresholds that define a High Earner and what constitutes a catch-up contribution.

Source: Belfint.com, December 2025

The DOL Audit: How Plan Sponsors Prepare and What to Expect

DOL audits are rarely welcomed by retirement and benefit plan sponsors. However, these audits serve an important purpose: ensuring that plans such as 401ks, 403bs, and pension programs are properly administered and comply with ERISA and tax regulations. Under ERISA, the DOL enforces strict fiduciary and reporting standards. This guide explores how sponsors can effectively prepare for an audit.

Source: Planpilot.com, December 2025

Summary of 2026 Benefit-Related Cost-of-Living Adjustments

Federal agencies -- including the IRS, PBGC, SSA, and CMS -- have released 2026 cost-of-living adjustments for retirement, health, and fringe benefit plans, as well as Medicare, Social Security, and SSI. The accompanying table provides qualified retirement plan limits for 2024–2026, including rounded IRC values and Mercer's unrounded 2026 projections.

Source: Mercer.com, December 2025

Locating Missing Participants: Pro Tips

Missing or unresponsive retirement plan participants create significant challenges for plan sponsors. Based on experience as IRA administrators, 401k sponsors, and search service providers, the article emphasizes that most issues can be resolved through a structured approach combining diligence, technology, documentation, and preventive measures. It introduces practical, field-tested tips for locating missing participants and maintaining accurate participant data.

Source: Asppa-net.org, December 2025

How Did the IRS Change the Required Amendments List for 2025?

The IRS has released the 2025 Required Amendments List in Notice 2025-60. It applies to individually designed plans under IRC Sections 401(a) and 403(b), as well as pre-approved plans for interim amendments. Compared to the 2024 RA List, the 2025 changes are generally less extensive.

Source: Asppa-net.org, December 2025

Why the Stated Match Formula Is the Most Dangerous Line in Your 401k Plan Document

The matching formula in a retirement plan document, often seen as simple and predictable, can actually be a major source of compliance problems. While employers may assume it's straightforward and "set it and forget it," in reality, it frequently causes operational failures and costly corrective actions, making it one of the most common pitfalls for plan sponsors.

Source: Therosenbaumlawfirm.com, December 2025

To Deem or Not to Deem: Navigating Deemed Roth Catch-Up Elections – A Practical Guide

As employers, payroll providers, recordkeepers, and plan administrators prepare for the 2026 Roth Catch-up Rule deadline, an important decision is whether to adopt the optional "deemed Roth election" provision. This provision allows employers to automatically classify catch-up contributions from high earners as Roth contributions once they reach the annual elective deferral limit. These FAQs explain the scope and application of the deemed Roth election provision, outlining its potential benefits and drawbacks for plan design.

Source: Truckerhuss.com, December 2025

Complying With the Required Minimum Distribution Rules When Participants Are Unresponsive or Uncooperative

Unresponsive or uncooperative participants pose serious challenges for tax-qualified retirement plans, creating administrative burdens, fiduciary risks, and potential compliance failures. This article examines these issues, reviews relevant regulatory guidance, and offers practical strategies for mitigating risk when participants scheduled to begin distributions fail to respond or cooperate -- commonly referred to as "recalcitrant participants."

Source: Truckerhuss.com, December 2025

2025 End-of-Year Plan Sponsor "To Do" List: Qualified Retirement Plans

As year-end approaches, employers should review their administrative, operational, and compliance responsibilities for qualified retirement plans. This includes confirming adoption of required amendments, updating processes in line with the SECURE Act and SECURE 2.0, and ensuring contributions, testing, and participant communications are on track. A proactive review now helps prevent compliance issues and supports plan integrity as we head into 2026. For convenience, the "To Do" list is divided into four categories.

Source: Swlaw.com, December 2025

When $1.8 Million Becomes the Fine Print in the 401k Fee Fight

In the 401k space, it's not just about managing plans; it's about managing perceptions of risk. When a plan is large enough to warrant institutional pricing but doesn't secure it, that omission can look like negligence in court. Whether you're an advisor, TPA, recordkeeper, or ERISA counsel, the key question remains: Can you demonstrate prudence if someone scrutinizes your process? This $1.8 million settlement isn't about scandal; it's about process. It underscores a simple truth: documentation outlasts memory, prudence outperforms guesswork, and time always wins.

Source: Jdsupra.com, December 2025

Did Your 401k Plan Meet the Discretionary Contribution Notice Requirements?

Plan sponsors using pre-approved 401k documents with discretionary matching contributions must comply with a new IRS requirement introduced in the 2022 Cycle 3 Restatement. This applies in any year a discretionary match is made. Despite the flexibility of discretionary matches, plans must meet the "definitely determinable benefits" standard by including a clear formula for contribution allocation. To comply, pre-approved plan documents must include specific language and satisfy two notice requirements.

Source: Brickergraydon.com, December 2025

Bad Tips for 401ks?

From 2025 to 2028, tipped workers can deduct up to $25,000 from federal income taxes, but this may negatively impact their 401k participation. Tips reported on Form W-2 remain subject to withholding and count as compensation for 401k deferrals. While pre-tax deferrals usually offer tax benefits, for tipped employees, they may create a disadvantage by turning otherwise tax-free income into taxable income.

Source: Benefitsattorney.com, December 2025

Understanding the New Roth Catch-Up Contribution Rules

Starting in 2026, the SECURE 2.0 Act will require higher-paid employees to make catch-up contributions to 401k and 403b plans as Roth (after-tax) rather than pre-tax. This change affects payroll, plan documents, and compliance, so plan sponsors should prepare now to avoid errors and participant frustration.

Source: Watkinsross.com, November 2025

2026 Cost-of-Living Adjustments

Plan sponsors should evaluate cost-of-living adjustments to identify any changes that need to be communicated to employees during orientation sessions or through enrollment materials. Additionally, updated amounts may need to be entered into payroll systems or other HR platforms to ensure accurate tracking of contributions to employee benefit plans. Here is a chart of changes.

Source: Pkfod.com, November 2025

Why did the Age 60-63 Catch-Up Contribution Limit Not Rise for 2026?

The IRS announced that the age 60–63 "super" catch-up contribution limit for 2026 will remain at $11,250 instead of increasing to $12,000 as some expected. The confusion stems from differences in how the IRS calculated the limit for 2025 compared to 2026.

Source: Plansponsor.com, November 2025

SECURE 2.0: Some Keys to Compliance

Staying compliant can be challenging, especially when navigating complex rules and deadlines outlined in the SECURE 2.0 Act. This includes requirements specific to 403b plans. At the recent ASPPA Annual Conference, John Griffin, Principal at ASC Institute, LLC, and Susan Poliquin, Director of Document Services at Definiti, explored key factors for meeting these requirements and deadlines.

Source: Ntsa-net.org, November 2025

2026 Retirement Plan Limits Step Up to the Plate

The IRS has announced adjustments to retirement plan limits for 2026, aimed at keeping retirement plans progressing. The update is compared to a previous celebratory moment when the firm's softball team won a local championship, emphasizing the theme of stepping up and moving forward. A chart of changes is provided.

Source: Belfint.com, November 2025

SECURE 2.0: Automatic Enrollment Mandate

Under SECURE 2.0, any retirement plan established after December 29, 2022, must include a Mandatory Automatic Enrollment feature. While most plans subject to this requirement will not need an immediate audit -- since new plans typically cover fewer than 100 employees -- the automatic enrollment rules they adopt closely mirror those applied to larger, grandfathered plans that do require audits. The accompanying chart offers a streamlined comparison of the mandate and available options.

Source: Belfint.com, November 2025

Payroll Pitfalls and Practical Fixes for the New Mandatory Roth Catch-Up Requirement for Retirement Plans

Starting January 1, 2026, catch-up contributions for participants aged 50 and older who are classified as high-paid in 401k, 403b, and governmental 457b plans must be made on a Roth basis. Employers will need to identify these participants and ensure their catch-up contributions are Roth, even if their current election is pre-tax. The IRS has issued final regulations on this requirement, which will impact payroll systems, plan recordkeepers, and sponsors.

Source: Foley.com, November 2025

Roth Catch-Up Contributions: Final Regulations Issued

The Treasury has issued final regulations effective January 1, 2026, giving plan sponsors new options and required elections under SECURE/SECURE 2.0. Sponsors don't need to finalize choices until adopting the amendment by December 31, 2026, which will be provided by their document provider. These regulations aim to clarify complex provisions, offering choices that may simplify or complicate plan administration.

Source: Ferenczylaw.com, November 2025

Preparing for 2026: IRS Announces Updated Retirement Plan Limits Under Notice 2025-67

The IRS has announced the official 2026 contribution and benefit limits for qualified retirement plans, including 401k, 403b, and 457b, in Notice 2025-67. Employers and plan sponsors should review these updates promptly to ensure compliance and optimize participant savings.

Source: Sblgllp.com, November 2025

Mandatory Roth Catch-Up Contributions for 2026

Many wonder why so much has been written about the new Roth catch-up rules. The reason is clear: these changes could significantly affect nearly every 401k plan. The rules are complex and far from intuitive, meaning plan sponsors who fail to prepare risk facing compliance issues that could have been easily avoided.

Source: Legacyrsllc.com, November 2025

Cost-of-Living Adjustments for 2026

Fidelity has released a comprehensive three-page chart detailing the updated Retirement and Health Savings Account contribution limits for 2026. The chart provides a clear breakdown of key adjustments, including annual contribution limits for 401k, 403b, and 457b plans, catch-up contributions for individuals age 50 and older, and updated HSA limits for both individuals and families.

Source: Fidelity.com, November 2025

2026 Cost-of-Living Adjustments for Retirement Plans

The IRS has announced cost-of-living adjustments for retirement plan limits effective for the 2026 tax year. Key changes include an increase in the annual salary deferral limit for 401k and 403b plans to $24,500, and a rise in the highly compensated employee threshold to $160,000. A chart summarizing the major 2026 limits is provided.

Source: Benefitslawadvisor.com, November 2025

IRS Announces 2026 401k Contribution Limits

The IRS announced updated contribution and benefit limits for 2026. Key changes include the amount individuals can contribute to their 401k plans (as well as 403b) in 2026 has increased to $24,500, up from $23,500 for 2025. Full details here.

Source: Psca.org, November 2025

IRS Announces 2026 Cost of Living Adjustments to Various Retirement Plan Limits

The IRS has announced the 2026 cost-of-living adjustments for various retirement plan limits. Notably, the agency has retroactively increased the Roth Catch-up FICA wage threshold from $145,000 to $150,000. Plan sponsors must apply this updated limit when identifying Highly Paid Individuals for 2026. Any catch-up contributions made by these individuals must be designated as Roth contributions rather than pre-tax. This new threshold must be communicated promptly to all plan sponsors to ensure accurate identification of HPIs for the upcoming year.

Source: Ferenczylaw.com, November 2025

Catch the Catch-Up Final Regulations Before They Catch You Off-Guard

Section 603 of the SECURE Act 2.0 requires high earners eligible for catch-up contributions to make them on a Roth basis starting January 1, 2026. The Final Regulations issued in September of 2025 are effective as of January 1, 2027, but the Roth catch-up mandate continues to be effective as of January 1, 2026, such that good faith compliance with the rules is expected between January 1, 2026, and December 31, 2026. Most plans already offer Roth and catch-up options, so implementation will be widespread. The mandatory Rothification is upon us, driven by tax revenue goals, which ultimately benefits participants through Roth savings.

Source: Belfint.com, November 2025

An Explanation of the 2026 IRS Retirement Plan Limits

The IRS has released its annual update to retirement plan contribution limits, and while that's welcome news, a few changes have caused some confusion. Let's break them down together. First, we'll tackle Roth catch-up contributions, followed by the SECURE 2.0 "super catch-up" provision.

Source: Asppa-net.org, November 2025

Secure 2.0 Mandatory Roth Contributions Update: Here's What to Know for 2026

With the numerous SECURE 2.0 Act updates in recent years, it's easy to lose track of which changes truly affect your business. One of the most significant updates for employers is the new requirement for Roth catch-up contributions for high earners. This paper explains what this means, why it's happening, and what you should prioritize as 2026 approaches.

Source: Myubiquity.com, November 2025

72(t), SEPP Distributions From 401k

The questioner wants to know if 72(t) payments (Substantially Equal Periodic Payments) can be taken from a 401k plan, since they've received conflicting information about whether this rule applies only to IRAs or also to employer-sponsored retirement accounts.

Source: Iradictionary.com, November 2025

Practical Guide to 401k Plan Catch-Up Contribution Changes for 2026

Under the SECURE 2.0 Act of 2022, new rules affect catch-up contributions for retirement plans like 401k, 403b, and governmental 457b. Starting in 2025, employees aged 50 or older can make additional elective deferrals of $7,500, beyond the regular annual limit of $24,500. These rules do not apply to SIMPLE IRAs or SIMPLE 401ks, which follow separate regulations. The IRS issued proposed rules in January 2025, and the Treasury Department and IRS jointly released final regulations last month to clarify outstanding questions. This article reviews the key rule changes for catch-up contributions and provides practical tips for employers.

Source: Bakerdonelson.com, November 2025

When the IRS Comes Knocking, and You Tossed the Evidence

IRS audits are challenging, but they become even more difficult when a plan sponsor has lost or discarded key records that the IRS requests. Without documentation, defending actions becomes nearly impossible, and missing records -- like a 2015 spreadsheet -- can be seen not as a minor oversight but as negligence. Here's the cold, simple truth.

Source: Therosenbaumlawfirm.com, November 2025

Hardship Withdrawals are on the Rise

Without emergency savings, employees are twice as likely to turn to workplace retirement accounts to cover unexpected costs, according to new data shared by Fidelity Investments. And citing data from its 2025 Global Financial Wellness Report, Fidelity notes that the cost of living and impact of inflation lead the way as the top stressor for almost 7 in 10 workers (68%), followed by the state of the economy (62%), and global political events (54%). Consequently, as more employees dip into their retirement savings, the absence of emergency funds increasingly threatens both their long-term financial security and their ability to retire on time.

Source: Psca.org, November 2025

Ready or Not: Preparing for the Final Roth and Super Catch-Up Rules

The IRS has finalized regulations under SECURE 2.0, addressing key provisions such as the Roth catch-up contributions for high-income earners and expanded "Super Catch-Up" limits for participants aged 60 to 63. These updates offer valuable guidance for plan sponsors and administrators and prompt important considerations regarding plan structure and compliance. Seyfarth's Employee Benefits team will provide practical insights into the implications of these changes.

Source: Seyfarth.com, November 2025

SECURE 2.0 Act Retirement Plan Update: Roth Catch-Up Contributions in 2026

On September 16, 2025, the IRS issued final regulations implementing the Roth catch-up contribution rules under the SECURE 2.0 Act of 2022. These rules require employers to change how catch-up contributions are taxed for high-income earners and to meet new administrative requirements. Employers are expected to comply in good faith starting January 1, 2026. With the final regulations now in place, employers need to begin preparing for both operational and documentation compliance.

Source: Quarles.com, November 2025

2026 IRS Retirement Plan Contribution Limits All But Official

While the IRS has yet to officially announce the 2026 retirement plan contribution limits, predictions from Mercer and Milliman suggest there won't be many surprises. Both firms anticipate a $1,000 increase in the employee contribution limit for 401k, 403b, and eligible 457 plans, raising the cap from $23,500 in 2025 to $24,500 in 2026. Additionally, the catch-up contribution limit for individuals aged 50 and older is expected to rise from $7,500 to $8,000.

Source: 401kspecialistmag.com, November 2025

2026 IRS Limits Forecast – Final Estimates

With the publication of the September 2025 consumer price index, all 12 of this year's monthly CPI rates are set. As the government shutdown continues, there may be a delay in the IRS publishing the final limits. This is Milliman's final estimate of the 2026 limits.

Source: Milliman.com, October 2025

Preparing for the Roth Catch-up Contribution Mandate: A Series

The IRS has released final regulations for a new mandate requiring Roth catch-up contributions. These rules are complex and demand that plan sponsors make strategic decisions, especially with the January 1, 2026 deadline approaching. While 2026 allows for good faith compliance, full adherence is expected by 2027. Sponsors must begin planning now, considering factors like payroll provider and recordkeeper capabilities. This article is the first in a series aimed at helping sponsors navigate these decisions.

Source: Wtwco.com, October 2025

Lost and Not Yet Found: Retirement Plan Sponsors' Duties Regarding Missing or Unresponsive Plan Participants

Each year, Americans invest billions of dollars into retirement accounts to prepare for their future. However, when it's time to access those funds, many participants are either unreachable or fail to cash the checks sent to them. This article outlines the responsibilities of plan sponsors in handling missing or unresponsive participants and explores alternative methods for managing the associated retirement plan assets.

Source: Sidley.com, October 2025

Retirement Plan Amendments: Are You Sure You Know Your Deadline?

Under IRS Notice 2024-2, most retirement plan sponsors have until the end of 2026 or later to amend their plans to incorporate provisions from the CARES Act, Miners Act, Relief Act, SECURE Act, and SECURE 2.0. However, this extension does not apply to Section 457b plans maintained by tax-exempt organizations, which must be amended by December 31, 2025. Amendment deadlines vary depending on the type of retirement plan. Here's a list of the current amendment deadlines by plan type.

Source: Spencerfane.com, October 2025

SECURE 2.0 Roth Deadline Tops Year-End Action Item List

Plan sponsors always have a full plate, but 2025 brings heightened importance, according to Mike Webb of CAPTRUST. As the fourth quarter progresses, experts emphasize key year-end actions for maintaining retirement plan compliance and health. The top priority this year: deciding how to implement the mandatory Roth catch-up contribution rule under the SECURE 2.0 Act of 2022.

Source: Plansponsor.com, October 2025

2025 Retirement Plan Year-End Amendments and Operational Compliance

As the leaves change and the holidays approach, it's a perfect time for retirement plan sponsors to review their plans to ensure year-end compliance. Even though the deadline to adopt formal amendments for legislative changes under the SECURE Act, CARES Act, and SECURE 2.0 is generally not until December 31, 2026, there are still important steps to take now, including: Reviewing plan documents to identify needed updates or amendments; Confirming operational compliance with legal changes that are already in effect; and Providing required participant notices, including safe harbor notices and QDIA notices, before applicable deadlines.

Source: Groom.com, October 2025

Getting Into the Details of Roth Catch-Ups

Starting in 2026, the Roth catch-up provision under the SECURE 2.0 Act will take effect on a "good faith" basis, introducing new complexities for retirement plan fiduciaries. As part of a broader shift toward "Rothification," this rule requires certain catch-up contributions to be made on a Roth basis -- without the upfront tax deduction of traditional contributions. Legal experts, including Jenny Kiesewetter of Fisher Phillips, emphasize that while the provision aims to raise revenue, it also presents hidden implementation challenges that plan sponsors must carefully navigate.

Source: Psca.org, October 2025

Mandatory Roth 401k and 403b Catch-Up Contributions Under the SECURE 2.0 Act

The SECURE 2.0 Act of 2022 introduced various measures aimed at expanding Roth treatment options within retirement plans, including a requirement that catch-up contributions made by high-wage employees be treated as Roth contributions. With final IRS regulations issued in September 2025, many implementation uncertainties have been clarified. Despite this guidance, retirement plan sponsors continue to face complexity in navigating the rules and must evaluate key decision points to ensure compliance. Key decision points for plan sponsors are reviewed in this article.

Source: Ipbtax.com, October 2025

Opportunity of a Lifetime: DOL Approves Lifetime Income Product as a Default Investment Option in ERISA 401k Plans

The DOL recently issued Advisory Opinion 2025-04A, affirming that a lifetime income product may qualify as a Qualified Default Investment Alternative under ERISA. This decision reflects a broader movement by the DOL, Congress, and plan sponsors to incorporate features traditionally found in defined benefit pension plans into defined contribution 401k plans.

Source: Willkie.com, October 2025

The 2026 Catch-Up Rule Change Is a "Hot Mess" for 401k Plan Sponsors

The author suggests that if there's a retirement plan rule that embodies the phrase "What fresh hell is this?", it's the impending 2026 catch-up contribution change for highly compensated employees. Under SECURE 2.0, high earners will be required to make their catch-up contributions as Roth, rather than pre-tax. This bureaucratic twist is enough to make one roll your eyes and reach for another martini. It's bound to be a chaotic situation, and as always in the 401k landscape, plan sponsors will be left to deal with the fallout.

Source: Jdsupra.com, October 2025

Plan Sponsors Must Address the Roth Catch-Up Contribution Mandate by January 1, 2026

The IRS has finally released the final regulations regarding the Roth catch-up contribution mandate, a change that was introduced to the Internal Revenue Code three years ago. According to these regulations, sponsors of 401k, 403b, and governmental 457b plans must be ready to implement the new requirement starting on January 1, 2026. This article outlines the details of the new mandate and highlights the decisions that need to be made and actions that should be taken over the next three months.

Source: Bsk.com, October 2025

When Do Retirement Plans Need a Financial Statement Audit?

Renee Mrosowski from Summit Group Retirement Planners provided a thorough summary of plan audit requirement rules. Her clear and methodical approach is impressive and can be very helpful. If you're uncertain about whether your client's plan requires an audit, refer to her step-by-step summary here, which will help clarify the situation.

Source: Belfint.com, October 2025

The Roth Catch-Up Regulations are Final: What You Need to Know

SECURE 2.0's Roth catch-up contribution rule has sparked controversy due to its complexity and administrative burdens for employers and third-party administrators. The IRS and Treasury released final regulations on September 15, 2025, to provide guidance for the rule's implementation, set for January 1, 2026. While the regulations become generally effective on January 1, 2027, the Roth Catch-up Rule must be enforced a year earlier. This article outlines the key provisions of these final regulations and highlights significant changes from the proposed version.

Source: Truckerhuss.com, October 2025

Profit Sharing Allocations: Who Gets What and Why It Matters

The article explores the concept of profit sharing in 401k plans, highlighting that while employees may fantasize about receiving extra retirement contributions from their employers, the real complexity lies in how these contributions are distributed. It examines various allocation methods for profit sharing, detailing the advantages and disadvantages of each.

Source: Newfront.com, October 2025

When Does Your ERISA Plan Need an Audit?

The Form 5500 is an annual information return required for most employee benefit plans under ERISA, with penalties for failing to file imposed by both the IRS and DOL. While employers with benefit plans generally understand the necessity of filing Form 5500, the specific schedules and attachments required can differ based on the plan's size and funding.

Source: Brickergraydon.com, October 2025

Auditing Merged Assets From Unaudited Retirement Plans

When large retirement plans merge assets from smaller plans during stock acquisitions or mergers, auditors must evaluate the potential operational errors from the smaller plans that could affect the financial statements of the larger plan. This assessment is especially crucial if the merged-in assets haven't been previously audited, as they may introduce "tainted" assets. Conversely, asset acquisitions and rollovers from plans that are terminated before the merger are less likely to pose this risk. The audit implications vary depending on whether the merged-in assets have been audited previously and whether the target company's plan is terminated before the merger.

Source: Belfint.com, October 2025

$1K Boost Projected for 2026 401k Employee Contribution Limit

According to a Milliman forecast, the IRS is expected to increase the maximum 401k contribution limit for employees by $1,000 in 2026, raising it from $23,500 to $24,500. Moreover, the Milliman forecast stated, "If the change in CPI in September is 0.7% or greater, the compensation limit for 2026 will be set at $365,000 instead of $360,000, and the maximum annual contribution for defined contribution plans will rise to $73,000 instead of $72,000."

Source: 401kspecialistmag.com, October 2025

What Might Top EBSA's Priority List Under Aronowitz?

Daniel Aronowitz, recently confirmed as the head of the Employee Benefits Security Administration, is expected to prioritize streamlining retirement plan oversight and reducing litigation in his new role. During his confirmation hearings, he also expressed a commitment to ending the "war" on employee stock ownership plans. However, an executive order from President Trump on August 7, which calls for a reevaluation of guidance on alternative investments in defined contribution plans, may quickly become a top priority for Aronowitz.

Source: Plansponsor.com, October 2025

Required Roth Catch-Up Goes Live in 2026

The IRS has released final regulations related to a provision in the SECURE 2.0 Act of 2022. These regulations state that participants in 401k or 403b plans, who have FICA wages exceeding a specific dollar amount from the sponsoring employer in the previous year, can only make catch-up contributions as designated Roth contributions. The article discusses key aspects of these final regulations and their implications.

Source: Erisalitigation.com, October 2025

IRS Elects to Contribute Complex Final Regulations on Super and Roth Catch-ups

On September 16, 2025, the IRS released final regulations regarding two new catch-up contribution provisions from the SECURE 2.0 Act of 2022. The provisions allow participants aged 60 to 63 to make increased catch-up contributions and require higher-income participants' catch-up contributions to be made as Roth contributions. These final regulations confirm that plan sponsors must implement the Roth catch-up requirement starting with the 2026 taxable year. While the final regulations largely follow the proposed regulations from January, they include clarifications and offer plan sponsors more flexibility in their administration.

Source: Eversheds-Sutherland.com, October 2025

IRS Issues Final Regulations on Roth Catch-Up Mandate for Higher Earners Ahead of Implementation Deadline

On September 15, 2025, the IRS released final regulations implementing provisions of the SECURE 2.0 Act concerning catch-up contributions for individuals aged 50 and older in employer-sponsored retirement plans. Notably, the IRS did not extend the transition period for the Roth catch-up requirement for higher earners, which must be in place by 2026. The final rules provide plan administrators with guidance on various administrative aspects, such as the deemed Roth catch-up election, an optional employer aggregation rule, and increased flexibility for corrections. Additionally, the final regulations include several modifications and clarifications to the previously proposed rules.

Source: Icemiller.com, September 2025

Forfeiture Accounts: Why Strong Oversight From Plan Sponsors Matters

Employers sponsoring 401k and 403b retirement plans should be vigilant about plan forfeitures that occur when employees leave before becoming fully vested. It's crucial to manage these funds effectively, as allowing forfeiture accounts to accumulate can lead to complications. ERISA plan documents typically include provisions for managing forfeiture accounts, influenced by IRS proposed regulations from February 2023. Plan fiduciaries need to not only be aware of these rules but also understand how to apply them to their specific situations. This article provides essential insights for managing forfeiture accounts, emphasizing the importance of understanding the relevant regulations.

Source: Bdo.com, September 2025

Final Catch-Up Contribution Rule Provides Some Relief

The final rule does not extend the effective date for the Roth catch-up contribution requirement for plans, except for multiemployer plans. For other plans, participants earning over $145,000 from their 2026 employer in 2025 must make all catch-up contributions in 2026 as Roth contributions instead of pre-tax contributions. Until the final rule is enacted, plans must comply with SECURE 2.0 using a reasonable, good-faith interpretation, and following the final rule will be considered such an interpretation.

Source: Segalco.com, September 2025

Industry Best Practices and Procedures for Roth Catch-Up Contributions

Final regulations regarding Roth catch-up contribution rules were released on September 15, 2025, and will take effect in 2027. In the interim, plans are expected to follow a reasonable, good faith interpretation of Section 603 for the year 2026. This document provides best practices, along with designated roles and responsibilities, to ensure compliance with the Roth catch-up contribution requirements, with the goal of streamlining complex processes and fostering consistency across the industry.

Source: Sparkinstitute.org, September 2025

Mandatory Roth Catch-Ups for Higher-FICA Wage Participants: Final Regulations

The IRS released Final Regulations on September 15, 2025, concerning mandatory Roth catch-up contributions for participants with higher FICA wages. These regulations maintain the "Deemed Roth Catch-up Election" rule from earlier proposed regulations. Under this rule, plans can automatically designate catch-up contributions as Roth for affected participants, provided they are offered a chance to opt out. To implement this option, plans must be amended accordingly.

Source: Sgrlaw.com, September 2025

Final Catch-Up Contribution Regulations Under SECURE 2.0 Act

On September 15, 2025, the IRS released final regulations regarding catch-up contributions for 401k, 403b, and governmental 457b plans, in line with the SECURE 2.0 Act of 2022. These regulations outline provisions for "Super" Catch-Up Contributions and Mandatory Roth Catch-Up Contributions specifically for high-wage employees, aimed at participants aged 50 or older by the end of the year.

Source: Ktslaw.com, September 2025

401k Plans and Audits

Generally, retirement plans sponsored by companies with 100 or more participants are required to submit an independent audit report along with their annual Form 5500 filing. Furthermore, both the DOL and the IRS have the authority to audit retirement plans. Therefore, it is advisable for plan sponsors to always be prepared for an audit. This article provides tips on how to get ready, including what to anticipate when notified of an audit.

Source: Colonialsurety.com, September 2025

Is Your Retirement Plan Correction Playbook Ready?

Retirement plans offer significant advantages to employees, but their administration can be quite complex. Even the most attentive plan sponsors can encounter errors. Since it's likely that mistakes will happen at some point during your retirement plan's duration, it's essential to have a strategy in place to effectively and promptly address any issues that arise.

Source: Brickergraydon.com, September 2025

Final Catch-Up Rules: What Now? (Spoiler Alert: There is No Extension)

The IRS has released final regulations regarding changes to catch-up contribution provisions under SECURE 2.0, following earlier proposed regulations. These final regulations address various administrative questions and clarify ambiguities that arose after the enactment of SECURE 2.0. This overview highlights key issues that have been resolved by these regulations.

Source: Beneficiallyyours.com, September 2025

Key Provisions of SECURE Act 2.0 and Implementation Challenges for Defined Contribution Plans

The SECURE Act 2.0, passed in late 2022, is significantly transforming the retirement landscape with a range of phased-in provisions. As we move through 2025, plan sponsors, payroll providers, and administrators will encounter new operational and compliance challenges. This article highlights the key provisions and provides insights on how to navigate their effective implementation for defined contribution plans.

Source: Withum.com, September 2025

New DOL Agenda Includes New ESG, Fiduciary Rules

The DOL has released its regulatory agenda for Spring 2025. This updated agenda includes topics such as Environmental, Social, and Governance issues, the fiduciary rule, auto-portability, pharmacy benefit managers, electronic disclosure, lost and found programs, employee stock ownership plans, and interpretative bulletin 95-1. The DOL emphasized that these actions aim to alleviate burdens on employers and employees, with a focus on regulatory changes regarding ESG, independent contractors, and PBMs.

Source: Psca.org, September 2025

PR Treasury Issues Rules to Retirement Plan Sponsors That Adopted SECURE 2.0 Act Amendments

Puerto Rico qualified retirement plans must meet the qualification requirements of the Puerto Rico Internal Revenue Code and may also need to comply with U.S. Code requirements for participants who are residents of the U.S. On August 26, 2025, the Secretary of the Puerto Rico Treasury Department issued Administrative Determination No. 25-03 to outline the qualification rules related to the amendments from the Setting Every Community Up for Retirement Enhancement Act of 2022 Act) for these retirement plans.

Source: Mcvpr.com, September 2025

PR Amends Tax Rules That Impact Certain Distributions From Retirement Plans

On July 17, 2025, Governor Jenniffer Gonzalez Colon signed Act 65-2025, amending Section 1021.02 of the Puerto Rico Internal Revenue Code. The amendment exempts lump sum distributions from Puerto Rico qualified retirement plans from the Alternative Basic Tax, provided they are subject to the preferential tax rate of 10% under Section 1081.01(b) of the PR Code. This is a short review.

Source: Mcvpr.com, September 2025

Long-Term Part-Time Employees

The "long-term part-time employee" rules have been in effect for almost two years, and most retirement plan sponsors and service providers should be familiar with them by now. However, some may still be in the process of implementing these rules or reviewing their current practices. This summary aims to clarify the current LTPT requirements to ensure understanding among all parties involved.

Source: Legacyrsllc.com, September 2025

2025 Statistics for 401k Plan Benchmarking

Benchmarking employee benefits plans allows companies to evaluate their offerings against others, revealing trends in recruiting and retention while highlighting areas for improvement in plan design. This process goes beyond fiduciary concerns, encompassing aspects like deferrals, participation rates, and overall competitiveness of the 401k plan. The article includes links to various benchmarking statistics from 2025 surveys to aid in this evaluation.

Source: Ifebp.org, September 2025

Understanding Plan Participant Disclosures and Notices (Pt. 1 of 3)

Plan sponsors must provide essential communications and disclosures to plan participants to ensure transparency and protect their interests. Watkins Ross has compiled a list of key required notices and disclosures for defined contribution plans, along with distribution deadlines to support plan sponsors in their responsibilities.

Source: Watkinsross.com, August 2025

IRS Guidance on Uncashed and Reissued Checks: An Opportunity to Review Payment Practices

The IRS issued Revenue Ruling 2025-15, which clarifies tax withholding and reporting obligations for stale and reissued retirement plan distribution checks. The ruling reaffirms that payors who have been following previous guidance (Revenue Ruling 2019-19) do not need to change their existing practices. It also states that payors cannot reverse required withholding or adjust notifications due to checks not being cashed. While the content was expected, the Ruling provides necessary clarity for payors and plan administrators by summarizing these principles in one release.

Source: Morganlewis.com, August 2025

IRS Issues Proposed Automatic Enrollment Guidance

The IRS recently released proposed guidance regarding the automatic enrollment requirements introduced by SECURE 2.0 for new 401k and 403b plans established after December 29, 2022. This guidance, referred to as "Mandatory Auto Enroll," mandates that employers automatically enroll employees at a minimum rate of 3% of their compensation, with annual increases of at least 1% up to a cap of 10%. Since the original legislation lacked detailed operational specifics, this IRS Guidance aims to clarify those details. However, it's important to note that the guidance is still in proposed form, and changes may occur before it is finalized.

Source: Legacyrsllc.com, August 2025

The New Priorities: Why Plan Sponsors Are Shifting Focus from Cost-Cutting to Cybersecurity and AI

The focus of 401k plan sponsors is shifting away from prioritizing cost reduction, which was previously their top concern. According to Escalent's 2025 Retirement Planscape report, only 40% of plan sponsors now list cutting expenses as a priority, down from 50% the previous year. Instead, concerns about cybersecurity and artificial intelligence have taken center stage, indicating a significant change in priorities driven by fear rather than cost.

Source: Jdsupra.com, August 2025

Oh, Fine! Keep the Money: The New IRS Overpayment Guidance

Given the substantial amounts of money that circulate within a retirement plan and are allocated to various participants, it's not unusual for excessive funds to be deposited into an individual’s plan account. This article examines the existing correction methods for addressing overpayment failures and highlights the new guidance provided in Notice 2024-77 regarding such overpayments.

Source: Ferenczylaw.com, July 2025

The Essential Role of Plan Sponsors in Participant Beneficiary Designations

As a plan sponsor, your responsibilities go beyond managing retirement plans; you also play a crucial role in securing the financial future of participants and their beneficiaries. A key part of this role involves assisting participants with the designation and regular updating of their beneficiaries. This article emphasizes the significance of accurate beneficiary designations, the risks associated with neglecting this aspect, and the proactive measures sponsors can take to educate and support participants.

Source: Psca.org, July 2025

DOL Supports Employers in Forfeiture Allocation Litigation

In a notable turn of events regarding ERISA forfeiture allocation cases, the DOL has submitted an amicus brief supporting the employer in Hutchins v. Hewlett Packard, a Ninth Circuit case, the first forfeiture case to reach an appellate court. This marks the DOL's first formal stance on the issue, which is usually disfavored by courts, as they prefer legal positions to be established through regulations rather than litigation.

Source: Wagnerlawgroup.com, July 2025

DOL's Plan Forfeiture Amicus Brief "Significant," Legal Experts Say

Legal experts view the DOL's recent amicus brief supporting HP Inc. in a 401k-forfeiture complaint as a significant development that could lead to more favorable court rulings for plan sponsors. The DOL stated that the alleged use of forfeited employer contributions in this case would not violate ERISA. Experts note that this marks a shift in the DOL's historical stance towards a more employer-friendly approach, which could influence future legal outcomes.

Source: Plansponsor.com, July 2025

IRS Clarifies Tax Rules for Uncashed Retirement Plan Distribution Checks

The IRS has released updated guidance in Revenue Ruling 2025-15 regarding federal tax withholding and reporting for uncashed retirement plan distribution checks. This ruling specifically addresses situations where an individual receives a distribution check that remains uncashed and is later voided, leading to the issuance of a second check. This guidance aims to standardize the treatment of these scenarios and enhance compliance related to retirement distributions that recipients do not cash immediately.

Source: Planadviser.com, July 2025

IRS Issues Further Guidance on Withholding and Reporting of Uncashed Checks

Revenue Ruling 2025-15, issued by the IRS on July 16, provides guidance for retirement plan administrators regarding withholding and reporting obligations related to uncashed distribution checks. This ruling builds on earlier guidance from Revenue Ruling 2019-19 and addresses issues surrounding uncashed checks that are canceled and later reissued. While the ruling offers helpful insights, the complexities of uncashed check situations mean it may not fully resolve the difficulties faced by plans.

Source: Groom.com, July 2025

IRS Clarifies That Failure to Cash Checks Does Not Affect Withholding or Reporting

Revenue Ruling 2025-15 offers guidance on the withholding and reporting responsibilities related to plan participants or beneficiaries who do not cash their distribution checks and subsequently receive replacement checks. The ruling aligns with general constructive receipt principles, indicating that individuals cannot alter their tax obligations by ignoring or failing to cash compensation. Although the ruling does not explicitly discuss constructive receipt, its implications are consistent with these established principles.

Source: Erisapracticecenter.com, July 2025

IRS Issues Guidance on Uncashed Retirement Plan Checks

The IRS has issued Revenue Ruling 2025-15, providing important clarification on the federal tax withholding and reporting obligations of retirement plan administrators when a distribution check is issued but not cashed, and a subsequent check is later issued to the participant. This guidance is especially significant for plan administrators managing situations involving missing participants or unclaimed distribution checks. The article highlights the main aspects of the ruling.

Source: Huschblackwell.com, July 2025

Guide to Dealing With DOL Investigations of Retirement Plans: Updated

The DOL frequently investigates fiduciaries and service providers of plans under ERISA to ensure compliance with Title I of ERISA. Understanding the DOL's enforcement authority and investigative procedures can help alleviate the administrative burden, costs, and stress associated with such investigations. The article provides guidance on what to expect during a DOL investigation and offers practical tips for effectively managing the process.

Source: Groom.com, July 2025

IRS Issues Guidance on Treatment of Uncashed Retirement Plan Distribution Checks

On July 16, the IRS released guidance regarding withholding and reporting related to uncashed retirement plan distribution checks, as detailed in Revenue Ruling 2025-15.

Source: Asppa-net.org, July 2025

Fiduciary Breach Suit Results From Beneficiary Disclosures

A lawsuit questioning whether providing information about designated beneficiaries on a participant statement could result in a fiduciary breach has been dismissed by the U.S. Court of Appeals for the Fifth Circuit. The case, LeBoeuf v. Entergy Corp., involved claims that the quarterly plan statements sent to participant Alvin Martinez contained "materially misleading information" about his beneficiary designations following his remarriage. Ultimately, the court ruled in favor of the defendants, dismissing the allegations.

Source: Asppa-net.org, July 2025

401k Forfeiture Litigation: Implications for Plan Sponsors

Since 2023, there has been a surge of class-action lawsuits alleging violations of fiduciary duties under ERISA concerning the management of 401k forfeitures. Plaintiffs claim that those responsible for deciding the use of forfeited funds have a fiduciary duty to the plan participants who remain in the plan. They argue that ERISA mandates these decisions prioritize the interests of participants, particularly in reducing administrative costs. Some plaintiffs have had limited success in overcoming motions to dismiss their cases, highlighting the legal vulnerabilities in the handling of 401k forfeitures. Fortunately, if you sponsor a plan that allows discretion in how to use forfeitures, there are several options to reduce litigation risk concerning their use.

Source: Bsk.com, July 2025

Timely Use Forfeitures

The IRS has made its stance clear: if you have plan forfeitures from 2024 or earlier, you must use them by December 31, 2025, or you could face compliance issues. Acknowledging that many plan sponsors may be unaware of this requirement -- whether due to lack of knowledge or oversight -- the IRS is providing a one-time grace period.

Source: Jdsupra.com, July 2025

EBSA Nixes Obsolete Interpretive Bulletins Relevant to Retirement Plan Admin

On June 30, the Department of Labor's Employee Benefits Security Administration announced the removal of certain interpretive bulletins related to the administration of retirement plans, deeming them obsolete and potentially confusing. This action, formalized in a Direct Final Rule, targets specific bulletins under ERISA that the DOL no longer considers necessary due to subsequent guidance and the implications of the 1978 Reorganization Plan No. 4. The DOL's objective is to reduce confusion and complexity in the regulatory framework.

Source: Asppa-net.org, July 2025

Legislative Change on the Horizon: What Plan Sponsors Need to Know

As we enter the latter half of 2025, plan sponsors and professionals in the retirement industry are keeping a vigilant eye on various legislative proposals that could influence the future of 401k plans in the coming years. This year, two notable bills were introduced in the Senate -- the Helping Young Americans Save for Retirement Act and the Protecting Americans' Retirement Savings Act -- underscore the federal government's continued commitment to broadening access to retirement plans while ensuring the protection of these vital investments.

Source: Savantwealth.com, June 2025

Mid-Year Regulatory and Legislative Update for DC Plan Sponsors

With regulatory and legislative priorities starting to take form, it's important to consider potential developments for the remainder of 2025 and into 2026. Initial drafts of the One Big Beautiful Bill Act did not propose any changes to retirement plan contributions or taxation. However, a key area to monitor is the inclusion of permissible investments in defined contribution plan menus, particularly regarding alternative investments and values-based investment strategies. This is a review of major issues.

Source: Ifebp.org, June 2025

Important Retirement Plan Compliance Roadmap

Recent confirmation hearings for the potential head of the Employee Benefits Security Administration highlighted likely future issues for retirement plans. The nominee emphasized that retirement plans and fiduciaries should operate within established fiduciary guidelines. Key regulatory priorities mentioned include: deregulating the enforcement of employee stock ownership plans, modernizing 401k investment options, enhancing cybersecurity, addressing plan forfeitures and missing participants, and expanding access to retirement and health plans.

Source: Oregonbusinessreport.com, June 2025

Form 5500 Season is in Full Swing: Are Wheels Turning (or are They Spinning)?

The Form 5500 is an annual report required by the DOL and the IRS for most retirement plans, like 401k plans, and certain health care plans. Accurate and timely filing is crucial, as both the DOL and IRS can impose substantial penalties for errors or late submissions. These agencies use Form 5500 to identify plans for potential audits, often targeting those with entries that are inconsistent or illogical. The article provides reminders and tips to help decrease the likelihood of being selected for an audit by the DOL or IRS.

Source: Hawleytroxell.com, June 2025

VFCP and Late Deposit of Contributions

The DOL's Voluntary Fiduciary Correction Program helps employers and plan officials rectify certain breaches of fiduciary duties under ERISA, enabling them to avoid civil enforcement actions and penalties. A key update effective March 17, 2025, allows for the self-correction of delinquent contributions and loan payments within 180 days of withholding or receipt, as long as lost earnings do not exceed $1,000. This change simplifies the process for plan sponsors to address common operational issues without a formal VFCP application.

Source: Consultrms.com, June 2025

QACA and EACA: Considerations for Plan Sponsors

When considering a Qualified Automatic Contribution Arrangement or an Eligible Automatic Enrollment Arrangement for a plan, plan sponsors need to be aware of several factors. While these arrangements offer benefits, they are complex and involve specific timing requirements, which may necessitate additional administration. Plan sponsors need to understand these complexities during the evaluation process before committing to an arrangement.

Source: Fidelity.com, June 2025

Don't Forget About the IRS When Correcting Delinquent Plan Contributions

Employers who fail to promptly deposit participant deferrals and loan contributions into their employer-sponsored retirement plans may face penalties from the DOL for violating their fiduciary responsibilities. Beyond DOL penalties, delays in deferring contributions can lead to prohibited transactions, subjecting employers to an excise tax under Section 4975 of the Internal Revenue Code. While relief from this excise tax is available, it necessitates proactive measures from plan sponsors.

Source: Brickergraydon.com, June 2025

New DOL/EBSA Opinion Letter Program Offers a Path to Clarity for Plan Sponsors

On June 2, 2025, the DOL introduced an Opinion Letter Program to enhance compliance assistance across five key enforcement agencies, including the Employee Benefits Security Administration. This initiative aims to offer employers and stakeholders clear guidance on complex employee benefit plan issues. Deputy Secretary of Labor Keith Sonderling highlighted the program's significance, noting that opinion letters provide essential, practical guidance for both workers and businesses.

Source: Benefitslawadvisor.com, June 2025

DC Retirement Plan Default Beneficiary Hierarchy

Many participants in defined contribution retirement plans often neglect to designate a beneficiary to receive their remaining account balance after their death, despite efforts by plan sponsors and administrators to emphasize its importance. When a valid beneficiary designation is not in place, the plan's default beneficiary hierarchy is utilized. This also applies if designated beneficiaries do not survive the participant or if they refuse their interest in the account. This article discusses key considerations for plan sponsors concerning their plan's default beneficiary hierarchy.

Source: Verrill-law.com, June 2025

Avoiding Litigation in the Aftermath of Cunningham v. Cornell University: Procedural Protections for Plan Sponsors

Following the Supreme Court's ruling related to fiduciary duties in Cunningham v. Cornell University, there's speculation about a surge in litigation, but a significant increase in meritless claims is unlikely. Instead, fiduciary lawsuits are expected to commonly include prohibited transaction claims along with other allegations such as excessive fees or breaches of duty. The lower threshold set by the ruling may enable these prohibited transaction claims to move past the initial pleading stage, extending litigation into discovery and further proceedings. However, plan sponsors can reduce litigation risk and associated costs by consistently following specific procedural practices, regardless of the ruling's overall impact on litigation rates.

Source: Reinhartlaw.com, June 2025

En Garde! The Challenge With Forfeitures

Recent news has highlighted an increase in ERISA class action lawsuits concerning the use of forfeitures in retirement plans. This issue impacts plans with employer contributions that have a vesting schedule. To mitigate the risk of being targeted by these lawsuits, many employers are amending their plans or establishing clear written administrative policies outlining the handling of forfeitures. The goal is to eliminate discretion in managing forfeitures, thereby reducing the potential for claims of fiduciary breach.

Source: Ferenczylaw.com, June 2025

DOL Rolls Out Updates to Opinion Letter Program

The DOL's Employee Benefits Security Administration has modernized its opinion letter program to improve compliance support. Announced on June 2, these changes aim to enhance the assistance provided to the public in understanding their rights and responsibilities under the law. Opinion letters offer official interpretations from the DOL on how laws apply to specific situations, providing clarity on regulations. Deputy Secretary of Labor Keith Sonderling emphasized the importance of these letters in offering clear and practical guidance for both workers and businesses.

Source: Napa-net.org, June 2025

New Voluntary Fiduciary Correction Program

The new Voluntary Fiduciary Correction Program introduces a Self-Correction Component that allows practitioners to use the DOL Calculator for self-correction of errors. In return for the self-correction, plan sponsors will receive an email acknowledgment of receipt rather than a "no-action" letter. The key difference between self-correction submissions and traditional VFCP filings is that self-correction only requires the retention of supporting documents, while filings necessitate the submission of those documents. Despite the difference, self-correctors must still prepare and keep all documentation as if filing a regular VFCP application.

Source: Belfint.com, May 2025

How Much Do Companies Typically Match on 401k

Employee matching contributions are a prevalent feature in employer-sponsored retirement plans, with 98% of employers offering some form of match to enhance employee savings. Beyond being a benefit, matching contributions serve as a strategic tool for employers to attract and retain top talent, boost productivity, and increase engagement. By linking matches to vesting schedules, employers can incentivize employees to remain with the company longer, resulting in increased savings for employees and better utilization rates for employers.

Source: Myubiquity.com, May 2025

Timely Use of Forfeitures

The IRS mandates that forfeitures in defined contribution plans must be utilized within 12 months after the end of the plan year in which they occur. Failure to comply with this timeline is deemed a compliance issue. Many plan sponsors unknowingly violate this requirement, leading to potential problems. However, the IRS is currently providing a temporary reprieve for affected plan sponsors, allowing them to resolve these compliance failures if they take action promptly.

Source: Legacyrsllc.com, May 2025

Mandatory Automatic Enrollment for New 401k/403b Plans Gets Much Needed Guidance

SECURE 2.0 mandated, for the very first time, a special automatic enrollment arrangement be added to all new 401k and 403b plans. In this comprehensive article, Groom principals Elizabeth Thomas Dold and David Levine explore essential facets of the IRS proposed regulations covering this new mandate. They discuss which plans fall under the regulations, the functioning of automatic enrollment features, and any applicable exceptions. Additionally, the article details the necessary compliance steps and highlights specific considerations regarding mergers, acquisitions, and multiple employer plans.

Source: Groom.com, May 2025

DOL Issues Temporary Enforcement Policy for Small Amount Transfers to State Unclaimed Property Funds

The DOL recently released Field Assistance Bulletin 2025-01, which offers a temporary enforcement policy concerning the transfer of small retirement plan benefits to state unclaimed property funds. This guidance aims to assist fiduciaries in meeting their ERISA obligations to locate participants and ensure they receive their retirement benefits, especially regarding uncashed checks and amounts that have been involuntarily distributed. However, plan fiduciaries are advised to carefully consider and consult legal counsel on the appropriateness of escheatment in different situations.

Source: Morganlewis.com, May 2025

Controlled Group or Affiliated Service Group? What That Means for Your 401k Plan Compliance

If your business is part of a Controlled Group or an Affiliated Service Group, it may face compliance issues concerning its 401k plan. Misunderstandings about these affiliations can lead to severe consequences, including plan disqualification, costly corrections, IRS penalties, and employee dissatisfaction. The positive aspect is that many of these issues can be resolved if addressed promptly. The article outlines the potential consequences, corrective actions, and strategies to safeguard your plan against audit risks.

Source: Employeebenefitslawgroup.com, May 2025

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