Partner Matthew Hawes spoke with PLANSPONSOR about how the implementation of Section 305 of the SECURE 2.0 Act of 2022 (SECURE 2.0) by the US Internal Revenue Service—which changes the process for self-correction of administrative loan errors—might impact a proposal from the US Department of Labor (DOL) to allow fiduciaries to correct certain transactional mistakes, then notify the US Department of Labor after the fact.
Matthew said while the effect of the DOL’s proposal to amend its Voluntary Fiduciary Correction Program is still unknown, Section 305 of SECURE 2.0 has the potential to lead to the DOL “tweaking the rule a little bit.”