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Industry & Regulatory News
IRS Issues Yield Curves and Segment Rates for DB Plan Calculations
The Internal Revenue Service (IRS) has issued Notice 2025-21, which contains updated guidance on factors used in certain defined benefit (DB) pension plan minimum funding and present value calculations. Updates include corporate bond monthly yield curve, the corresponding spot segment rates for March used under Internal Revenue Code Section (IRC Sec.) 417(e)(3), and the 24-month average segment rates for April under IRC Sec. 430(h)(2). IRC Sec. 417 contains definitions and special rules for minimum survivor annuity requirements in DB plans. IRC Sec. 430 addresses minimum funding standard for single-employer DB plans.
IRS Announces Deadline Relief for Arkansas Storm Victims
The IRS has announced the postponement of certain tax-related deadlines for victims of Arkansas storms until November 3, 2025. The tax relief postpones various tax filing deadlines that began on April 2, 2025. Affected individuals and households who reside or have a business in the entire state of Arkansas, as well as taxpayers with records located in the covered area that are needed to meet covered deadlines, qualify for relief.
Industry & Regulatory News
IRA Bankruptcy Exemption Increases
Effective April 1, 2025, the maximum aggregate bankruptcy exemption amount for IRAs increased from $1,512,350 to $1,711,975. This exemption amount is subject to cost-of-living adjustments (COLAs), having risen from an initial exemption limit of $1,000,000 as enacted within the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Public Law 109-8. The limitation is reviewed every three years and increased if COLA measures warrant.
There is no maximum exemption for assets accumulated in employer-sponsored retirement plans.
Industry & Regulatory News
HSA Catch-Up Proposal Introduced
Representatives Greg Steube (R-FL) and French Hill (R-AR) have introduced the Catch-Up Act to allow married individuals to make catch-up contributions to their spouse’s health savings account (HSA). While individuals are permitted to make catch-up contributions to their respective HSA, they are currently not allowed to make catch-up contributions to the HSA of their spouse.
Industry & Regulatory News
Retirement Plan Disaster Assistance May Be Available for Virginia Severe Winter Storms and Flooding
The Federal Emergency Management Agency (FEMA) issued a Major Disaster Declaration on April 4, 2025, for Virginia severe winter storms and flooding, for the incident period of February 10 – February 18, 2025.
Industry & Regulatory News
Proposal Aimed at Self-Directed Investments Introduced
Representative Byron Donalds (R-FL) has introduced H.R. 2544, the Financial Freedom Act to prohibit the Secretary of Labor from constraining the range or type of investments that may be offered for participant directed retirement accounts. The proposal has been referred to the House Committee on Education and Workforce for further consideration.
Industry & Regulatory News
Proposal to Allow Certain Funeral Expenses from HSA Introduced
Representative Kevin Hern (R-OK) has introduced H.R. 2436, a bill that would allow distributions for funeral expenses of the account beneficiary of a health savings account (HSA) as a qualified distribution. The aggregate amount treated as funeral expenses would be limited to $5,000.
Industry & Regulatory News
DOL Provides Guidance for Defined Benefit Annual Funding Notices
The Department of Labor has issued Field Assistance Bulletin (FAB) 2025-02 and accompanying single employer and multiemployer model notices updating notice requirements for defined benefit plans pursuant to Section 343 of SECURE 2.0. FAB 2025-02 uses a Q&A format to explain the methods that single employer defined benefit pension plans use to measure the value of assets, value of liabilities, and funding level.
Industry & Regulatory News
PBGC Updates Interest Assumptions for Valuing Benefits for Second Quarter 2025
The Pension Benefit Guarantee Corporation (PBGC) has issued a final rule updating interest assumptions under the asset allocation regulation for plans with valuation dates in the second quarter of 2025.
Industry & Regulatory News
Proposal Expanding Disaster Relief to State Declared Disasters Passes Committee
Representatives David Kustoff (R-TN) and Judy Chu (D-CA) previously introduced H.R. 517 the Filing Relief for Natural Disasters Act. The bill would allow the governor of a state or territory to extend a federal tax filing deadline in the event of a state-declared emergency or disaster, which happens automatically for federally declared disasters.