Defined contribution plan
Industry & Regulatory NewsInvestment Advice Fiduciary Class Exemption Published, Effective Date Set
Appearing in today’s Federal Register is Department of Labor Employee Benefits Security Administration (EBSA) Prohibited Transaction Exemption (PTE) 2020-02, which will provide guidance to investment advisors who counsel retirement and other investors. As noted in an Ascensus December 16 announcement, the guidance completes a process that began with 2016 regulations and exemptions issued under the Obama administration. Those regulations and exemptions were subsequently vacated in 2018 by a federal appeals court.
Industry & Regulatory NewsDOL Issues Investment Advice Fiduciary Class Exemption
The Department of Labor’s (DOL’s) Employee Benefits Security Administration (EBSA) has issued a long-awaited class exemption, Prohibited Transaction Exemption (PTE) 2020-02, providing guidance to investment advisors who counsel retirement and other investors. The guidance completes a process that began with 2016 regulations and exemptions issued under the Obama administration, which were vacated in 2018 by a federal appeals court, and a promise by new DOL leadership under President Trump to issue new guidance in its stead. Yesterday’s issuance of a news release, fact sheet, and PTE 2020-02 completes that process.
Industry & Regulatory NewsDOL Issues Final Regulations on Proxy Voting and Shareholder Rights
The Department of Labor’s Employee Benefits Security Administration (EBSA) has issued a pre-publication version of final regulations, entitled Fiduciary Duties Regarding Proxy Voting and Shareholder Rights. These regulations were published in the Federal Register in proposed form on September 4, 2020, followed by a 30-day comment period that ended October 5, 2020. Accompanying the final regulations just issued are an EBSA fact sheet and news release.
Industry & Regulatory NewsIRS Announces Tax-Related Deadline Relief for Puerto Rico Storm Victims
The IRS has issued News Release PR-2020-03, providing for the postponement of certain tax-related deadlines for victims of September 13, 2020, storm and flood events on the island of Puerto Rico. In addition to extending certain tax filing and tax payment deadlines, the relief includes completion of many time-sensitive, tax-related acts described in Treasury Regulation 301.7508A-1(c)(1), which include filing Form 5500 for retirement plans, completing rollovers, making retirement plan loan payments, etc.
Industry & Regulatory NewsPBGC Requests to Seek Information on Roth Account Data and Foreign-Source Income
The Pension Benefit Guaranty Corporation (PBGC) has requested from the federal Office of Management and Budget (OMB) permission to continue collecting information on certain retirement plan missing participant accounts under the authority of the Paperwork Reduction Act. This information collection request (ICR) differs somewhat in that PBGC is asking the OMB for authority to modify the scope of information that the agency collects on missing participants.
Industry & Regulatory NewsIRS Notice Addresses 401(k)/403(b) Safe Harbor SECURE Act Provisions
The IRS has issued Notice 2020-86, providing guidance for implementing provisions of the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019. Specifically, the SECURE Act provisions addressed deal with features and procedures of 401(k) and 403(b) plans that incorporate safe harbor designs for satisfying nondiscrimination testing requirements, and automatic enrollment and automatically increased deferral rates.
Industry & Regulatory NewsWashington Pulse: PEP Model Evolves with DOL Proposed Registration Guidance
The DOL has issued a proposed rule on registration for pooled plan providers (PPPs), who may begin offering pooled employer plans (PEPs) on January 1, 2021. As this date quickly approaches, those who are considering offering or adopting a PEP need further guidance. But at least this proposed rule starts to answer some of the many questions that must be resolved before PEPs can become a viable alternative for employers.
Industry & Regulatory NewsFinal Regulations Issued for Offset Retirement Plan Loan Rollovers
The IRS has issued final regulations implementing a provision of the 2017 Tax Cuts and Jobs Act (TCJA) that permits an extended period—beyond 60 days—to roll over the proceeds of certain retirement plan loans that are offset and treated as distributions. This guidance was issued in proposed form on August 20, 2020, followed by a 45-day comment period. Publication as final in the Federal Register is pending.
Industry & Regulatory NewsIRS Seeks Comments on Spousal, Annuity Rights for In-Kind 403(b) Distributions of Terminating Plans
The IRS has issued Notice 2020-80, which requests comments on spousal and annuity rights that may potentially apply to 403(b) custodial accounts that are distributed to participants in-kind upon termination of a 403(b) plan.
News ReleasesAscensus Receives Top Honors from Retirement Plan Sponsors for Providing Best in Class Support
Firm Wins Most Best in Class Awards for Plans Up to $50MM in PLANSPONSOR Defined Contribution Survey