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

June 9, 2020

DOL Issues Guidance on 401(k) Plan Investments in Private Equity

On June 3, 2020, the U.S. Department of Labor (“DOL”) issued guidance in the form of an Information Letter that significantly expands the defined contribution retirement plan (including 401(k) plan) investment landscape by expressly permitting the use of private equity as an investment in limited circumstances. Overview. Generally stated, the Information Letter clarifies that, under… Continue Reading

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