July 31, 2020

DOL Keeps Its “Social Distance” from 401(k) Plan Investments in Environmental, Social and Governance Funds

On June 30, 2020, the U. S. Department of Labor (“DOL”) published a proposed rule (see also related Notice of Proposed Rulemaking) that would throw cold water on the idea of “social investing” in retirement plans, including 401(k) plans. In particular, by emphasizing that ERISA requires plan fiduciaries to select investments and investment courses of… Continue Reading

July 29, 2020

DOL Proposes Revised Prohibited Transaction Exemption

On June 29, 2020, the U. S. Department of Labor (“DOL”) issued a proposed prohibited transaction exemption (“PTE”) – along with a related fact sheet – that would permit “investment advice fiduciaries” to receive compensation in exchange for providing investment advice to retirement plans and their participants and beneficiaries. Among other things, the proposal generally… Continue Reading

July 27, 2020

Temporary Suspension of 401(k) Plan Safe Harbor Contributions Due to COVID-19

On June 29, 2020, the Internal Revenue Service (“IRS”) issued Notice 2020-52 that generally permits employers who sponsor safe harbor 401(k) plans to temporarily reduce or suspend certain contributions made during the COVID-19 crisis. As a bonus, the Notice also addresses reductions of certain midyear contributions that affect only “highly compensated employees” (“HCEs”), regardless of… Continue Reading

July 22, 2020

New IRS Guidance Expands Eligibility for 401(k) Plan COVID-19 Related Distributions and Loans

On June 19, 2020, the Internal Revenue Service (“IRS”) issued Notice 2020-50, along with a related news release, that provides official guidance on “coronavirus-related distributions” and temporarily expanded loans taken from 401(k) plans due to the COVID-19 crisis. The Notice expands the eligibility criteria for such distributions and loans, thereby potentially increasing the number of… Continue Reading

July 1, 2020

IRS Issues Rollover Relief For RMDs Waived Under CARES Act

On June 23, 2020, the Internal Revenue Service (“IRS”) issued Notice 2020-51 along with a related news release that permits 401(k) plan participants who took required minimum distributions (“RMDs”) in 2020 to roll over the amount of the distribution back into a 401(k) plan by no later than August 31, 2020. The guidance provides welcome… Continue Reading

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