News

Industry & Regulatory News
College Savings Rollovers to Roth IRAs Proposed

Senators Richard Burr (R-NC) and Bob Casey (D-PA) have introduced the College Savings Recovery Act, to allow families to transfer unused funds in their college savings 529 accounts into a Roth IRA. The College Savings Recovery Act was originally included as part of Senator Burr’s Boost Savings for College Act proposed in 2017.

June 17 2022
Industry & Regulatory News
Auto-Portability Legislation Introduced

Senators Tim Scott (R-SC) and Sherrod Brown (D-OH) have introduced the Advancing Auto Portability Act of 2022, aimed at reducing retirement “leakage” by allowing for automatic rollovers of certain accounts to follow workers to another employer plan.

June 17 2022
Industry & Regulatory News
Starter-K Companion Legislation Introduced in House

Representatives Linda T. Sánchez (D-CA) and Darin LaHood (R-IL) introduced the Starter-K Act, legislation intending to expand access to retirement savings for more Americans. Companion legislation was introduced in the Senate by Senators John Barrasso (R-WY) and Tom Carper (D-DE).

June 17 2022
News
Ascensus Wins Retirement Leader of the Year

Ascensus won Retirement Leader of the Year at the With Intelligence Mutual Fund & ETF Awards. The Annual Mutual Fund & ETF Awards recognize the funds, fund leaders, providers, marketers, trustees, and independent counsel who stood out for their successes, achievements, and contributions in 2022.

June 17 2022
Industry & Regulatory News
Federal Prime Interest Rate Increased to 4.75%

Effective June 15, 2022, the Federal Prime interest rate increased from 4.00% to 4.75%. The Prime interest rate is largely determined by the federal funds rate, as set by the Federal Reserve’s Federal Open Market Committee (FOMC). As Department of Labor regulations require a retirement plan loan interest rate to be comparable to interest rates charged by entities that are in the business of lending money in similar circumstances, plan sponsors typically use a benchmark such as the Prime rate to set the interest rate on plan loans.

The next FOMC meeting is scheduled for July 26-27, 2022.

June 15 2022
Industry & Regulatory News
RISE & SHINE Act Approved by Committee

The Senate Health, Education, Labor and Pension (HELP) Committee unanimously passed out of committee S.4353 the Retirement Improvement and Savings Enhancement to Supplemental Healthy Investments for the Nest Egg (RISE & SHINE) Act (previously announced), with two amendments.

June 14 2022
Industry & Regulatory News
Senate HELP Committee Retirement Bill Introduced

Senators Patty Murray (D-WA) and Richard Burr (R-NC), chair and ranking member of the Senate Health, Education, Labor and Pensions (HELP) committee respectively, have introduced the Retirement Improvement and Savings Enhancement to Supplemental Healthy Investments for the Nest Egg (RISE & SHINE) Act, the Senate HELP committee’s latest version of compiled retirement provisions. While the provisions included in this version of the bill remain substantially similar to the discussion draft version previously announced, some technical details have been changed or removed from select provisions.

June 08 2022
News Releases
Chard Snyder Recognized by WEX for Outstanding Service at WEX Spark Annual Awards Ceremony

MASON, OH — Chard Snyder, a national third-party administrator of employee benefit solutions and wholly owned subsidiary of Ascensus, has been honored by WEX with a 2021 Partner Excellence Award for outstanding business achievements. The employee benefit solutions provider received the Service Innovator Award and was named a member of the Circle of Excellence at the annual WEX Spark Partner Conference held in Hollywood, Florida May 16-18, 2022.

June 08 2022
Industry & Regulatory News
Senators Announce Cryptocurrency Bill

Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) announced the “Lummis-Gillibrand Responsible Financial Innovation Act,” set to be introduced in the Senate. The Senators describe the bill in an accompanying press release as a “complete regulatory framework for digital assets.” Included within the many provisions of the bill is a requirement for the Government Accountability Office (GAO) to conduct a study and provide a report to Congress and the Secretaries of Treasury and Labor on benefits, risks, and barriers to retirement investing in digital assets.

June 07 2022
Industry & Regulatory News
IRS Announces Pre-Examination Compliance Pilot

According to an Employee Plans News release, the IRS is piloting a pre-examination retirement plan compliance program beginning in June 2022. Plan sponsors of retirement plans that have been selected for examination would be notified by letter and given a 90-day period to review plan documents and operations to determine if there are compliance issues. Mistakes found that qualify for the Self Correction Program under the Employee Plans Compliance Resolution System can be corrected in that manner. For items that don’t qualify, the plan sponsor can request remediation through a closing agreement with the IRS. The IRS will review documentation and either issue a closing letter or conduct a limited or full scope examination. The goal of the pilot program is to reduce taxpayer burden and reduce time spent on retirement examinations. The duration of the pilot was not specified, but the IRS will evaluate the effectiveness of the program to determine if it will become part of their overall compliance strategy. 

June 03 2022