Members of our Technical Services Committee review and discuss the legislative, regulatory, and litigation changes affecting retirement plans in 2022.

This year, the most significant area of activity continues to be in the courts, as ERISA breach of fiduciary cases continue to be filed. Most notably, the Supreme Court revived the ERISA lawsuit against Northwestern University.

This webinar also coversr updates from the IRS, DOL, and what is happening on the legislation front impacting retirement plans the most….(read more)

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2022 Retirement Plan Regulatory Update

As we enter into a new year, it’s important to stay informed about the regulatory updates that may impact retirement plans in 2022. These updates aim to ensure the smooth functioning and stability of retirement plans, providing individuals with a secure and prosperous retirement.

One significant change that retirement plan participants should be aware of is the increase in the contribution limits for various retirement accounts. The Internal Revenue Service (IRS) announced that the contribution limit for 401(k), 403(b), and most 457 plans will increase to $20,500 for individuals under the age of 50. For those aged 50 and older, the catch-up contribution limit has been raised to $6,500, allowing them to save even more for their retirement.

Additionally, the IRS has implemented changes to Individual Retirement Accounts (IRAs). The annual contribution limit for IRAs remains at $6,000, with an additional $1,000 catch-up contribution allowed for individuals aged 50 and older. This allows individuals with IRAs to save more towards their retirement goals and potentially enhance their financial security.

Another notable update is the expansion of automatic enrollment in retirement plans. The Department of Labor (DOL) has proposed regulations that seek to make it easier for employers to automatically enroll employees into their retirement plans. This aims to increase retirement plan participation rates and ensure more workers have access to retirement savings opportunities. It is important for employees to be aware of this change as they may be automatically enrolled or have the option to opt-out.

Moreover, the Secure Act 2.0 legislation is expected to be a significant topic in the realm of retirement plan regulatory updates. The proposed legislation aims to further enhance retirement security by expanding access to retirement plans, increasing the ability for individuals to save, and making it easier for small businesses to offer retirement benefits to their employees. This legislation, if passed, could have a substantial impact on retirement plans in 2022 and beyond.

The Department of Labor has also been focusing on enhancing fee disclosure requirements. Retirement plan participants should expect to receive clearer and more comprehensive information regarding fees associated with their retirement plans. This increased transparency aims to empower individuals to make more informed decisions and ensure that their retirement savings are being used efficiently.

Stricter cybersecurity regulations are also likely to be a priority in 2022. Recent cyber-attacks have highlighted vulnerabilities in retirement plan systems, emphasizing the need for increased cybersecurity measures. New regulations may require retirement plan administrators to establish and maintain robust cybersecurity protocols to safeguard sensitive participant information.

To ensure compliance with these regulatory updates, plan sponsors and administrators should review their retirement plans and make any necessary adjustments. It is crucial to communicate these changes effectively to plan participants, providing them with the information they need to make informed decisions about their retirement savings.

As we navigate through 2022, staying informed and proactive regarding retirement plan regulatory updates is essential. These changes aim to strengthen retirement plans, empower individuals, and ensure a secure and prosperous retirement for all. By understanding and adapting to these updates, individuals can make the most of their retirement savings opportunities and work towards a financially secure future.