The Department of Labor (DOL) announced that it has finalized, together with the Internal Revenue Service (IRS) and Pension Benefit Guarantee Corporation (PBGC), the third and final round of revisions to the Form 5500 Annual Return/Report of Employee Benefit Plan and the 5500-SF Short Form Annual Return/Report of Small Employee Benefit Plan.
These Phase III revisions implement certain elements of a September 2021 regulatory proposal, which included proposed changes to annual reporting requirements under the Employee Retirement Income Security Act of 1974 (ERISA). Some of the changes relate to the Setting Every Community Up for Retirement Enforcement Act (SECURE Act), including items affecting multiple-employer plans (MEPs) and defined contribution group reporting arrangements. As such, the changes mostly impact retirement plans. Phase III revisions are effective for plan years beginning January 1, 2023, with filing beginning in July 2024. The previous Phases I and II adopted changes for plan years 2021 and 2022, respectively.
Continue reading “Final Changes Announced to Forms 5500 and 5500-SF”
SECURE 2.0, which was included as part of the Consolidated Appropriations Act of 2023, was signed into law in late December 2022. The statute contains 92 substantive sections making reforms to a broad array of retirement-related provisions in ERISA, the Internal Revenue Code (the Code) and certain other laws. Of these 92 sections, four make changes to various aspects of the required minimum distribution (RMD) rules set forth under the Code that apply to annuities in various situations.
Continue reading “SECURE 2.0 Includes Several Changes Intended to Encourage the Use of Retirement Annuities”
The SECURE 2.0 Act of 2022 (SECURE 2.0), the follow-up legislation to the Setting Every Community Up for Retirement Enhancement Act of 2019 (now known as SECURE 1.0) (previously discussed here and here), includes many important legal changes affecting retirement plans. SECURE 2.0 is intended to expand access to retirement plans, encourage additional retirement savings and ease certain administrative burdens on retirement plan sponsors.
In a measure that substantively affects plan sponsors and alters retirement plan correction practices, SECURE 2.0 significantly expands the availability of self-correction by widening the range of operational failures for which self-correction is available, including plan loan errors.
Continue reading “SECURE 2.0 Expansion of Self-Correction Program and Plan Loan Error Corrections”
SECURE 2.0 introduced several new distribution options and tax reporting rules for defined contribution plan sponsors. Below is an overview of the new provisions and their potential implementation dates. (For an overview of SECURE 2.0 for defined contribution plan sponsors, click here.)
Here is a quick summary of the new distribution changes in SECURE 2.0.
Continue reading “SECURE 2.0 Adds New Distribution Options for Defined Contribution Plans”
Congress included “SECURE 2.0 of 2022” in the Consolidated Appropriations Act, 2023, the $1.7-trillion omnibus spending bill, which was signed by President Biden on December 29, 2022 (the date of enactment). Secure 2.0 is a follow-up to the Setting Every Community Up for Retirement Enhancement Act passed in 2019, now known as “SECURE 1.0.”
Continue reading “SECURE Act 2.0: What Defined Contribution Plan Sponsors Need to Know”