Retirement plans are required to file certain forms with the Internal Revenue Service (IRS) and Department of Labor (DOL) and deliver certain notices to plan participants and beneficiaries on a periodic basis.
The specific forms and notices subject to filing and delivery depend on the type of plan and its specific provisions.
For example, a 401(k) plan that is intending to satisfy the safe harbor requirements must deliver a safe harbor notice to its participants, while a traditional defined benefit plan would not have a similar requirement.
Please refer to the following links for resources provided by both IRS and DOL summarizing the current reporting and disclosure requirements:
- IRS Publication 5411, Retirement Plans Reporting and Disclosure Requirements
- DOL Reporting and Disclosure Guide for Employee Benefit Plans
While the delivery requirements are intended to provide regulators and plan participants with important information regarding a plan, efforts to adhere to the existing requirements have become costly and administratively burdensome for plan sponsors and confusing and overwhelming for plan participants.
Sections 340 and 341 of the SECURE 2.0 Act (SECURE 2.0) attempt to address this concern by directing the DOL and Treasury Secretaries to review existing requirements and identify (1) areas for improvement and (2) opportunities for consolidation.
The review process has been directed to conclude within the next 2 to 3 years with no specific timetable for implementation of any recommended changes.
If you have any questions about the SECURE 2.0 Act (SECURE 2.0), please contact a member of the Schneider Downs Retirement Solutions team at [email protected].
This article is part of a series highlighting the impact of the SECURE 2.0 on retirement plan sponsors, participants and retirees. You can view our full catalog of SECURE 2.0 articles here or download our comprehensive SECURE 2.0 eBook here.
About SECURE 2.0
SECURE 2.0 was signed into law by President Biden on Dec. 29, 2022, as part of a $1.7 trillion omnibus spending bill.
This massive piece of legislation builds on the foundation that was laid by the 2019 Setting Every Community Up for Retirement Enhancement (SECURE) Act to further improve upon the success of the private employer-based retirement system by making it easier for businesses to offer retirement plans and for individuals to save for retirement.
The full text of SECURE 2.0, including provisions that affect pension and cash balance plans, may be found on pages 2,046-2,404 of the omnibus Consolidated Appropriations Act of 2023.
About Schneider Downs Retirement Solutions
Schneider Downs Retirement Solutions has experience in all facets of qualified and non-qualified plan delivery, which allows us to be flexible to the needs and direction of our clients. Our specialized team of advisers and consultants provide objective advice and expertise to help plan sponsors govern their retirement plans appropriately, mitigate risk, improve participant outcomes and support efficient and compliant plan operations.
Schneider Downs Wealth Management Advisors, LP (SDWMA) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). SDWMA provides fee-based investment management services and financial planning services, along with fee-based retirement advisory and consulting services. Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice. Registration with the SEC does not imply any level of skill or training.
