Plan sponsors that have already or are considering reducing or suspending contributions to their safe harbor 401(k) or 403(b) plans as a result of the coronavirus pandemic now have helpful relief thanks to new guidance from the Internal Revenue Service (IRS).
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted on March 27, 2020, waived required minimum distributions (RMDs) from tax-qualified defined contribution retirement plans (such as 401(k) and 403(b) plans) and individual retirement accounts (IRAs) that were otherwise due in 2020 to help Americans cope with the uncertainty...
The Department of Labor (DOL) recently finalized a rule that makes it easier for plan sponsors to use email and internet websites to deliver certain retirement plan disclosures or other documents to plan participants.
Managing cash flow is an ongoing priority for any business. Protecting an organization’s cash flow in times of economic distress is paramount. To retain liquidity in the short term, many organizations are examining their retirement plans for flexibility in cash outflows.
The ongoing saga about fiduciary standards for advice related to retirement assets has a new chapter that plan sponsors need to be aware of. In June, the Department of Labor (DOL) proposed a rule that would give plan sponsors and participants additional clarity about whether advice providers are held to a fiduciary standard. The DOL’s proposed...
The coronavirus pandemic has forced many employers to implement some form of workforce reduction to continue operating. While furloughs and layoffs have a significant and immediate impact on a company’s operations, plan sponsors also need to understand the longer-term effects workforce reductions have on participants’ benefits and...
The U.S. unemployment rate reached 14.7% in April, its highest level since the Great Depression, as companies looked to cut costs amid the coronavirus pandemic. While downsizing the workforce can help companies remain afloat, plan sponsors need to understand how these decisions could affect their retirement plans.
With the surge in remote working amid the coronavirus pandemic, employers are rightly focused on strengthening cybersecurity protocols to protect the sensitive information that employees access as part of their daily jobs. Plan sponsors also need to think about protecting retirement plan information.
By Kim Flett and Beth Garner The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020, extends several key deadlines for 403(b) and defined benefit plan sponsors.
- 403(b) remedial amendment period extended to June 30, 2020: The law extends the initial remedial amendment period for 403(b) plans from...
By Greg Garrett, Beth Lee Garner, and Mary EspinosaThe U.S. Department of Labor (DOL) announced a proposed new rule in October 2019 that would allow retirement plan sponsors to post plan disclosures online, rather than having to deliver this information via physical mail. While the DOL has emphasized that the proposed rule should result in...
