Benefits Blast

On August 25, 2023, the IRS issued Notice 2023-62, which effectively delays for two years the requirement that certain catch-up contributions in 401(k), 403(b), or governmental 457(b) plans be made as Roth contributions.

On February 13, 2023, a Florida federal district court (the Court) partially invalidated the U.S. Department of Labor’s Employee Benefit Security Administration’s (the Department’s) interpretation of its rule that described when a financial adviser who helps participants roll over some or all of their 401(k) assets into an individual retirement account (IRA) or an annuity is providing investment advice and acting as a fiduciary under the Employee Retirement Income Security Act of 1974, amended (ERISA).

What is an in-plan Roth 401(k) conversion and why is it relevant today? During this episode of Winston & Strawn’s Benefits Blast Podcast, Employee Benefits & Executive Compensation Attorney Nancy Gerrie discuss Roth conversions inside a 401(k) plan and provide key takeaways for employers who are considering adopting this feature in their 401(k) plan.

The IRS recently released proposed amendments to the hardship distribution regulations for 401(k) (and, by extension, 403(b)) plans, which take into account recent statutory changes and add some additional nuances. 

Year-end plan amendment reviews are an important part of satisfying ERISA’s fiduciary standards and maintaining tax-qualified status. The fundamental purpose is to determine whether the plan document requires modification to align with administrative practice and the law. Failing to follow the plan document can prove costly.

Given the times, It is no longer atypical for clients to experience situations involving the theft of participants’ retirement account balances as the result of a variety of criminal methods, including “phishing” emails, participants’ carelessness in protecting their passwords, family theft, etc. 

In October, the U.S. Department of Labor issued an Interpretive Bulletin on social investing by qualified pension and 401(k) plans, This is not exactly an executive compensation issue; however, shareholders and their advisers have focused on corporate governance issues in making investment decisions for some time now. 

Last week, the Boeing Company and participants in its 401(k) plan filed a motion for preliminary approval of a class settlement to end longstanding litigation. The settlement concludes a long and complicated journey for one of the many excessive fee cases filed in the mid-2000s.