31 May 2022
Missed Deferrals in 401(k) Plans: How-to-Fix Guide
A missed deferral opportunity arises when an eligible employee in a 401(k) plan or other qualified cash or deferral arrangement should have had an opportunity to defer, reducing compensation by elective deferrals, but the deferral was missed by inaction of the employer/plan administrator. This occurrence isn’t uncommon in an auto enrollment plan, because it also happens for other reasons, like a missed entry date. But how can you correct? See when and how, and the advantages of not waiting too long to do so.
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Practical Guidance Updates
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- Employee Benefits & Executive Compensation Key Legal Developments Tracker
Stay informed on new developments.- Retirement Plans. IRS issues six-month extension, to Dec. 31, 2022, of temporary relief from the rule that retirement plan elections requiring the signature of an individual participant (including spousal consents under section 417) must be witnessed in the physical presence of a plan representative or notary public. The notice extends guidance released previously under Notice 2020-42,Notice 2021-03, and Notice 2021-40. IRS Notice 2022-27.
- Health and Welfare Plans. HHS, DOL, and IRS issue guidance in the form of FAQs that clarify disclosure of drug price identified in the transparency rules of the No Surprises Act. FAQs about Affordable Care Act Part 53.
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- Check out the new Practical Guidance Author Center! Learn about the 1500+ leading attorney authors contributing to our 21 practice areas, and find out how you can Become a Practical Guidance Author.
- The Practical Guidance Journal Spring 2022 Edition includes market trends on post-employment restrictive covenants.
- Legal Developments provide the latest updates and analyses of emerging topics impacting your practice area. Visit the Legal Developments page to see the latest topics, which also include breaking legal news and related Practical Guidance content.
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