Individual Retirement Accounts Archives

Webinar Replay: What to Know About SECURE 2.0

by Sarah L. Engle, Jeffrey Holdvogt, Andrew Liazos, Lisa Loesel, Jacob Mattinson and Brian Tiemann | Feb 1, 2023 | Employee Benefits, Fiduciary and Investment Issues, Retirement Plans, SECURE 2.0 Act

What do retirement plan professionals and participants need to know about the recently passed SECURE 2.0 Act of 2022? In this webinar replay, McDermott’s Employee Benefits team discusses the many changes to retirement plans and individual retirement accounts, including the key changes for 401(k), 403(b) and defined benefit plans as well as other changes impacting health and welfare plans. Discussion topics include the following:

Automatic plan enrollment and escalation
Allowance of matching contributions for elective deferred student loan repayments
Emergency savings option
Expansion of Roth account contributions
Automatic cashout, hardship and disaster changes
Penalty-free distributions
Changes to required minimum distributions

Access the webinar.

Access the webinar’s slides.

Read the On the Subject about SECURE 2.0 here.

JOIN US: SECURE 2.0 Takes Second Bite at Retirement Security

by Sarah L. Engle, Jeffrey Holdvogt, Andrew Liazos, Lisa Loesel, Jacob Mattinson and Brian Tiemann | Jan 24, 2023 | Employee Benefits, Fiduciary and Investment Issues, Retirement Plans, SECURE 2.0 Act

Join partners from McDermott’s Employee Benefits team on Wednesday, January 25, 2023, as they discuss the impact of the recently passed SECURE 2.0 Act of 2022. With over 90 changes to retirement plans and individual retirement accounts (IRAs), this webinar will highlight the key changes for 401(k) and 403(b) plans and defined benefit plans, as well as changes in the Consolidated Appropriations Act, 2023 impacting health and welfare plans.

Topics Include:

Automatic Plan Enrollment and Escalation
Allowance of Matching Contribution for Elective Deferred Student Loan Repayments
Emergency Savings Option
Expansion of Roth Account Contributions
Automatic Cashout, Hardship and Disaster Changes
Penalty-Free Distributions
Changes to Required Minimum Distributions

To learn more, read the full On the Subject here.

REGISTER FOR THE WEBINAR HERE.

Save It for a Rainy Day: Recent Amendment Extensions for Qualified Retirement Plans, 403(b) Plans and Individual Retirement Accounts

by Teal Trujillo, Allison Wilkerson and Diane Morgenthaler | Sep 21, 2022 | Executive Compensation, Fiduciary and Investment Issues, Retirement Plans

The Internal Revenue Service (IRS) recently issued needed relief to extend some amendment deadlines for non-governmental qualified retirement plans and 403(b) plans, and for individual retirement accounts (IRAs) under the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), the Bipartisan American Miners Act of 2019 (Miners Act), and certain provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) until December 31, 2025. However, the IRS did not provide relief for all required amendments for the 2022 plan year. Plan sponsors that elected to offer COVID-related distributions or loan relief (or utilized disaster-related relief for loans or distributions under the Taxpayer Certainty and Disaster Tax Relief Act of 2020) still need to amend their plans by the end of 2022 plan year.

When Are Cryptocurrencies Appropriate Investments for Retirement Plans and IRAs?

by Brian Tiemann and McDermott Will & Emery | Jun 7, 2022 | Employee Benefits, Fiduciary and Investment Issues, Privacy and Data Security, Retirement Plans

The US Department of Labor (DOL) recently issued guidance for the first time on the investment of retirement plan assets in cryptocurrencies. Compliance Assistance Release No. 2022-01 cautions 401(k) plan fiduciaries to “exercise extreme care” before allowing participants to invest plan assets in cryptocurrencies because cryptocurrencies “present significant risks and challenges to participants’ retirement accounts, including significant risks of fraud, theft, and loss.” In this Intellectual Property & Technology Law Journal article, McDermott Partners Andrea S. Kramer and Brian J. Tiemann outline what retirement plan fiduciaries need to know about cryptocurrency investments in the current market.

Access the article.

View From McDermott: DOL Re-Proposes Regulations to Expand ERISA ‘Fiduciary’ Definition

by Brian Tiemann and Joseph K. Urwitz | Jul 7, 2015 | Retirement Plans

The U.S. Department of Labor (DOL) issued proposed regulations on April 14, 2015 that would expand the types of investment advice covered by fiduciary protections under the Employee Retirement Income Security Act of 1974, as amended (ERISA) and the Internal Revenue Code of 1986, as amended (the Code). The proposed regulations would require advisers to ERISA-governed retirement plans and individual retirement accounts (IRA) to act as ‘‘fiduciaries’’ within the meaning of ERISA and the Code, subject to certain carve-outs identified by the DOL for nonfiduciary adviser services. Advisers that become fiduciaries under the proposed regulations would be subject to ERISA fiduciary duties and prohibited from engaging in certain non-exempt transactions. The proposed regulations are accompanied by two new class prohibited transaction exemptions and amendments to several existing class exemptions, which recognize the expanded scope of ERISA’s fiduciary protections under the proposed regulations while allowing advisers to continue certain types of transactions and existing fee arrangements that would otherwise be prohibited for ERISA fiduciaries. While the proposed regulations likely would have the greatest impact on the IRA marketplace, advisers to plan sponsors, and therefore plan sponsors themselves, are likely to be impacted. Comments on the proposed regulations are due by July 21, 2015.

Read the full article.

Treasury Department and IRS Release Initial Lifetime Income Guidance; Additional Guidance Expected Shortly

by McDermott Will & Emery | Feb 27, 2012 | Retirement Plans

by Joseph S. Adams, Stephen Pavlick and David Diaz

Two years after the Internal Revenue Service (IRS) and U.S. Department of Labor (DOL) jointly issued a high-profile Request for Information regarding how defined contribution plans can better provide lifetime income, the IRS and Department of the Treasury have issued some initial guidance. DOL guidance, expected to further underscore the importance of the issue, is anticipated “in the near future.”

To read the full article, please click here.