Retirement Regulation

Whether via audit or some other review process, it's not uncommon for employers to discover that a plan failure has occurred, however, most errors are resolvable — and potentially without fees or penalties — under the right circumstances.

The question is not whether the new legislation impacts plan sponsors, it's which of the more than 90 provisions apply to them and when do they take effect.

Plan sponsors should take note of how rules around retirement plans are evolving due to regulatory changes, including the passage of SECURE 2.0, and whether their strategy remains relevant in this new environment.

SECURE 2.0 includes changes to retirement plans that will push up the age investors are required to start withdrawing from their 401(k)s to 73 in 2023 (from last year's 72).

Ahead of the next Federal Reserve meeting on Feb. 1, ongoing inflation leaves economists expecting bigger rate hikes than most Fed officials have projected.

The cause for the funding challenge is that spending for Social Security is set to increase sharply in relation to GDP in the next decade as the large baby-boom generation retires, according to the CBO.