Industry & Regulatory News
DOL Proposed Amendment for QPAM Exemptions Has Left OMB

A Proposed Rule titled “Proposed Amendment to PTE 84-14 for Plan Asset Transactions Determined by an Independent Qualified Plan Asset Manager” (QPAM) has left the Office of Management and Budget—suggesting that official release may come soon.

ERISA generally prohibits a number of transactions between a plan and a “party in interest”—including fiduciaries and those providing services to the plan—unless an exemption is granted. PTE 84-14 is a class exemption regarding certain transactions between a party in interest with respect to an employee benefit plan and an investment fund that is managed by a QPAM. An employee benefit plan includes an employee welfare benefit or pension benefit plan, a trust defined under IRC. Secs. 401(a) or 403(a), IRAs, HSAs, MSAs, and ESAs. QPAMs are independent fiduciaries that are a bank, savings and loan, insurance company, or registered investment advisor meeting certain asset/net worth thresholds. 

July 18 2022
Industry & Regulatory News
SEC Adopts Amendments to Proxy Voting Advice Rules

The Securities and Exchange Commission (SEC) has adopted amendments that rescind two rules applicable to proxy voting advice businesses (PVABs) that were adopted in 2020. The 2020 rule imposed conditions on the availability of two exemptions from the proxy rules’ information and filing requirements. Those conditions require that

  • Registrants that are the subject of proxy voting advice have such advice made available to them in a timely manner, and
  • PVAB clients are provided with a means of becoming aware of any written responses by registrants to proxy voting advice
July 13 2022
Industry & Regulatory News
IRS Posts Draft 2022 Form 8889 for HSA Reporting

The IRS has released a draft 2022 tax year Form 8889, Health Savings Accounts (HSAs). Form 8889 is filed by taxpayers to report HSA contributions and associated tax deductions, HSA distributions, and any tax or penalty tax owed for distributions not used for qualified medical expenses.

July 12 2022
Industry & Regulatory News
Lawsuit Filed in Another Cybertheft of Plan Assets

A plaintiff in a 401(k) plan sponsored by Colgate-Palmolive Co. has filed a lawsuit against several parties after an unknown individual defrauded the plan of her entire $750,000 account. The plaintiff has named the plan sponsor, the recordkeeper Alight Solutions, and the plan trustee Mellon Bank, as defendants in the lawsuit. The plaintiff alleges the parties breached their fiduciary duty by failing to safeguard her assets.

July 11 2022
Industry & Regulatory News
IRS Releases Additional Guidance on Special Financial Assistance

The IRS has released Revenue Ruling 2022-13 on the applicability of Internal Revenue Code (IRC) Section 432(b)(7) following a merger involving a multiemployer defined benefit (DB) plan that has received special financial assistance (SFA). IRC Sec. 432(b)(7) provides for deemed critical status for eligible multiemployer plans receiving SFA. If a multiemployer DB plan that has received SFA is merged into a multiemployer DB plan that has not received SFA, and the designated plan ongoing is the one that has not received SFA, is the ongoing plan deemed to be in Sec. 432(b)(7) critical status? The IRS holds that, in this case, when the ongoing plan after a merger was not the one that had received SFA prior to the merger, it is not deemed to be in Sec. 432(b)(7) critical status solely as a result of the merger.

July 11 2022
Industry & Regulatory News
PBGC Special Financial Assistance for Multiemployer Plans Final Rule Released

The Pension Benefit Guaranty Corporation (PBGC) has released a final rule outlining terms for underfunded multiemployer plans seeking special financial assistance (SFA) under the American Rescue Plan (ARP) Act of 2021. ARP allows certain financially troubled multiemployer plans to apply for special financial assistance in accordance with rules developed by PBGC. The rule is scheduled to be published on July 8, 2022.


July 07 2022
Industry & Regulatory News
IRS Posts Updated Publication 1179

The IRS has released the latest version of Publication 1179 (Revenue Procedure 2022-25), General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns.

Some organizations, such as IRA trustees or custodians, may prefer to draft and use substitute forms rather than IRS-provided information return forms. In addition to specifications for properly creating substitute forms, the guidance addresses such issues as inclusion of logos, slogans, and advertisements, as well as penalties for information return filing failures, and delivery requirements.

July 06 2022
Industry & Regulatory News
Discussion Draft on Financial Privacy Introduced

Congressman Patrick McHenry (R-NC) has released a discussion draft of legislation to modernize financial privacy laws and give consumers more control over how their personal information is collected and utilized. A press release provides the following highlights of the proposal

  • Modernizes the Gramm-Leach-Bliley Act to align consumer protections with financial system innovation
  • Empowers consumers to understand how personal information is being collected and used by a service provider when they agree to a service provider’s privacy policy, and ensures consumers have the right to terminate collection of their data or request deletion of their data
  • Directs entities to disclose to consumers why they are collecting certain data along with the ability to opt out of the data collection—and to use data only for its stated purpose
  • Improves transparency by requiring privacy terms and conditions in consumer disclosures to be easily understandable
  • Provides a national standard that would preempt state privacy laws to provide consistency across the nation with respect to collection and use of personal information
July 01 2022
Industry & Regulatory News
House Proposal Would Expand 529 Eligible Expenses

Congressman Lloyd Smucker (R-PA) has introduced H.R. 8128, a bill to expand the allowable education expenses available for use from 529 education savings accounts. The bill would allow industry recognized apprenticeship programs registered and certified by an eligible Standards Recognition Entity as qualified education expenses. These programs would be in addition to existing apprenticeship programs registered and certified with the Secretary of Labor that qualify as higher education expenses.

The definition of qualified education expense would also be further expanded to include expenses related to a “career and technical education program” (as defined by the Carl D. Perkins Career and Technical Education Act of 2006) or a “career pathway” (as defined by the Workforce Innovation and Opportunity Act).

June 30 2022
Industry & Regulatory News
IRS Releases 2022 Draft Form 945

The IRS has made available a draft 2022 Form 945 Annual Return of Withheld Federal Income Tax. This form is used to report withheld federal income tax from nonpayroll payments such as distributions from tax-favored retirement plans. The form will be reviewed and additional details provided as warranted.

June 27 2022