Regulatory Updates

IRS Guidance on SEPPs from QRPs

The IRS has issued Notice 2022-06, providing guidance on whether periodic payments from an individual account under a qualified retirement plan are considered a series of substantially equal periodic payments (SEPPs). Notice 2022-6 modifies and supersedes Revenue Ruling 2002-62.

SEPPs must be taken at least annually and are based on the life expectancy of the account owner or account owner and beneficiary. Account owners can choose from one of three methods to determine their payments: 1) the required minimum distribution (RMD) method, 2) the fixed amortization method, or 3) the fixed annuitization method. To qualify for this early distribution penalty exception, a series of payments must continue unchanged until the later of five years or until the account owner reaches age 59½.

Final regulations containing updated life expectancy tables were issued (and announced) in 2020. The IRS updated the life expectancy tables to ensure that future required payments from retirement savings arrangements would better reflect actual life expectancies. Notice 2022-06 notes that when using the RMD or fixed amortization methods, the new life expectancy tables are to be used for any series of payments commencing on or after January 1, 2023, and may be used for a series of payments commencing in 2022. Account owners that begin a series of payments before 2023 using the RMD method may switch to an updated table without being treated as having a modification of payments.

This Notice will be reviewed further, and any items of significance shared. 

Regulatory Updates

Proposed Enhanced Disclosures About ESG Investment Practices

Proposed Enhanced Disclosures About ESG Investment Practices

The SEC has issued a proposed rule that would add reporting requirements for registered investment advisors, registered investment companies, certain advisers that are exempt from registration, and business development companies.