Retirement Plans Archives - EMPLOYEE BENEFITS BLOG

Navigating the Shifting Fiduciary Landscape

by Todd Solomon | Apr 8, 2025 | Employee Benefits, Retirement Plans

Todd Solomon recently appeared on the 401(k) Roundtable™ podcast. Hosted by Rick Unser of Creative Planning Retirement Services, the podcast is designed to help plan sponsors, fiduciaries, and members of retirement plan committees stay up to date on recent developments in the benefits industry.

During the episode, Todd explored the changing fiduciary landscape, trends in Employee Retirement Income Security Act litigation, the influence of the Trump administration on the US Department of Labor, and the evolving expectations surrounding fiduciary duties. He delved into the balance between the duty of loyalty and prudence, the significance of participant demographics in making plan decisions, and the difficulties plan sponsors face when weighing cost against value, particularly when choosing investments like target-date funds. Todd and Rick also stressed the importance of thorough documentation, active committee involvement, and creative approaches to improving participant outcomes in today’s intricate regulatory climate.

Listen on Apple Podcasts
Listen on Spotify

Trump Administration Places DOL’s ESOP Proposals in Regulatory Moratorium

by Ted Becker, Allison Wilkerson, Erin Turley and Myriem Bennani | Feb 25, 2025 | Employee Benefits, Employee Stock Ownership Plans (ESOPs), Retirement Plans

On January 16, 2025, the US Department of Labor’s (DOL) Employee Benefits Security Administration released two proposed regulations related to employee stock ownership plans (ESOPs). One regulation aims to clarify the valuation process for non-publicly traded employer stock, while the other would provide a safe harbor for transactions involving newly established ESOPs.

However, on January 20, 2025, the Trump administration froze all pending proposals, including the DOL’s ESOP regulations. If finalized, these regulations would dramatically change the landscape for fiduciaries responsible for valuing stock in privately held corporations during transactions with ESOPs.

New Year, New Rules: Global Equity and Employment Law Considerations for Calendar Year 2025

by Rob Marshall and Lauren Salas Mationg | Jan 9, 2025 | Employee Benefits, Employment, Executive Compensation, Health and Welfare Plans, Retirement Plans

Many countries finalized new regulations and released new guidance in 2024 that will impact global equity plans. This client alert highlights key updates from Canada, the European Union, the United Kingdom, Brazil, and other jurisdictions, and recommends steps companies should take to address them.

Access the article.

Employee Benefit Plans: Important Considerations for Year-End and 2025

by Lisa Loesel, Jacob Mattinson and Teal Trujillo | Dec 12, 2024 | Employee Benefits, Health and Welfare Plans, Retirement Plans

With the 2025 plan year right around the corner, this is the ideal time for plan sponsors to ensure that plan operations comply with evolving legislative and regulatory requirements. This client alert highlights important regulatory changes that will impact retirement plans and health and welfare plans in the coming year.

IRS Issues New Long-Term, Part-Time Employee Guidance Under the SECURE 2.0 Act for 403(b) Plans

by Kevin Spencer, Evan Walters and Sama Kaseer | Nov 7, 2024 | Employee Benefits, Retirement Plans

On October 3, 2024, the Internal Revenue Service (IRS) released Notice 2024-73, which provides guidance on the application of nondiscrimination rules under Internal Revenue Code § 403(b) for long-term, part-time employees. The notice also announces that the final regulations, which the IRS will issue for 401(k) plans on long-term, part-time employees, will apply to plan years beginning on or after January 1, 2026.

Government Announces 2025 Employee Benefit Plan Limits

by Jeffrey Holdvogt, Jacob Mattinson and Brian Tiemann | Nov 5, 2024 | Employee Benefits, Health and Welfare Plans, Retirement Plans

The Internal Revenue Service (IRS) has announced the cost-of-living adjustments to the applicable dollar limits for various employer-sponsored retirement and welfare plans for 2025. Most of the dollar limits that are subject to adjustment for cost-of-living increases will increase for 2025. The Social Security Administration released separate adjustment amounts.

See the amounts here.

Back-to-School Special: IRS Offers Insight on Implementing Qualified Student Loan Payments

by Jeffrey Holdvogt, Lisa Loesel and Teal Trujillo | Oct 15, 2024 | Employee Benefits, Retirement Plans, SECURE 2.0 Act

On August 19, 2024, the Internal Revenue Service issued Notice 2024-63 (the Notice), providing guidance regarding the implementation of Section 110 of the SECURE 2.0 Act of 2022, which permits employers with a 401(k) plan or 403(b) plan to provide matching contributions to employees based on employee student loan payments. Through various questions and answers, the Notice provides practical information on how to administer eligibility rules, employee certification, nondiscrimination testing, and other procedures.

IRS Releases Guidance on Matching Contributions for Student Loan Payments

by Kevin Spencer, Evan Walters and Sama Kaseer | Oct 1, 2024 | Employee Benefits, Retirement Plans

Last month, the Internal Revenue Service (IRS) released long-awaited guidance on matching contributions for qualified student loan payments under § 401(k) of the Internal Revenue Code and other similar retirement plans. This guidance aims to help plan sponsors with setting up these programs for plan years beginning after December 31, 2024, until proposed regulations are issued.

Learn more and see other updates in this Weekly IRS Roundup.

New IRS Revenue Procedure Affects Defined Benefit Pension Plan Sponsors

by Kevin Spencer, Evan Walters and Sama Kaseer | Aug 29, 2024 | Employee Benefits, Retirement Plans

The Internal Revenue Service (IRS) recently released a new revenue procedure that outlines how sponsors of defined benefit pension plans should request approval to use plan-specific substitute mortality tables for plan years beginning on or after January 1, 2025. The IRS also issued new proposed regulations that would increase penalties for employers that erroneously claimed employment tax credit refunds under the Families First Coronavirus Response Act; the Coronavirus Aid, Relief, and Economic Security Act; and the American Rescue Plan Act of 2021.

Check out this Weekly IRS Roundup here for more information.

Assessing the Recent Claims Against Sellers and Other Non-Trustees in Lawsuits Relating to ESOPs

by J. Christian Nemeth and Jane Kim | Aug 15, 2024 | Employee Benefits, Employee Stock Ownership Plans (ESOPs), Retirement Plans

Increasingly, sellers of stock and others who customarily have not been named as defendants alongside employee stock ownership plan (ESOP) trustees are being sued in lawsuits relating to ESOPs. Chris Nemeth and Jane Kim recently presented a webinar to members of the National Center for Employee Ownership (NCEO) analyzing this trend. They discussed the types of claims recently brought against sellers, company executives, outside investors and other non-trustees in recent lawsuits relating to ESOPs, and they offered practical tips for protecting against such lawsuits.

Watch the recording here.

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