INFORMATION OF USE TO BENEFIT PLAN SPONSORS AND BENEFIT ADVISERS

The Brave New World of Self-Correction

With apologies to Aldous Huxley, it is fair to say that SECURE 2.0 has ushered in a brave new world of self-correction for plan sponsors with plan qualification failures.  This post focuses on self-correction of operational failures; i.e., failures to operate plans in accordance with their written terms. SECURE 2.0 comprises Division T of the Consolidated Appropriations Act, 2023, and Section 305 of that Division expanded the Employee Plans Compliance Resolution System (EPCRS) to permit self-correction of any inadvertent failure to comply with the rules applicable to qualified plans, Section 403(b) plans, SIMPLE…

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CPA Dismay Over Form 5500 Changes May be Misplaced

Last week, final changes to Form 5500 reporting requirements were announced that are estimated to result in over 10,000 fewer retirement plans having to file independent qualified public accountant (IQPA) reports with their Form 5500 returns. The changes, which take effect for reporting for the 2023 plan year, were met with dismay by CPA firms that provide the IQPA reports, often referred to as audit reports. However, their concerns may be short-lived, as certain provisions of SECURE 2.0 will likely increase plan participation levels over the next few years and result in more…

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Ten Mandatory SECURE 2.0 Changes for 401(k) Plans

The SECURE 2.0 Act of 2022, as enacted on December 29, 2022, contains over 90 provisions affecting retirement plans and IRAs, but of the many provisions only a handful are required changes for 401(k) plans.  This post lists those changes and indicates when the provisions go into effect.  Unless otherwise noted, 401(k) plans (and 403(b) plans, to which these changes also apply) will need to be amended to reflect mandatory SECURE 2.0 changes by the end of their 2025 plan year, unless that deadline is later extended.  Note that some of the changes…

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“I am a benefits (ERISA) attorney. I help businesses prevent, and fix, problems with their employee benefit plans in order to preserve the tax-qualified status of those plans, and ultimately the saleability of their businesses.”
-Christine P. Roberts

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Christine P. Roberts
Mullen & Henzell L.L.P.
phone: (805) 966-1501
email: croberts@mullenlaw.com

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