Exchange-Traded Funds (ETFs) are not currently permitted to be traded in certain plans utilizing individual insurance contracts in retirement plans. The new regulation will remove this restriction to allow access to ETFs. Applicable plans: 401(a), 401(k), 403(b) and...
Retirement Plan Law
Exclusion of Certain Disability Related First Responder Retirement Payments
First responders will be allowed to exclude service-connected disability pension payments from gross income after reaching retirement age. Applicable plans: 401(a), 401(k), 403(a), 403(b), governmental 457(b) plans. Effective 1/1/2027.
Saver’s Credit to be Replaced with Federal Saver’s Match
The nonrefundable Saver’s Credit for some IRA and retirement plan contributions will be superseded by a Federal Saver’s Match contribution that is deposited into an IRA or retirement plan. The match is equal to 50% of the amount deferred by the participant, up to...
Requirement to Provide Paper Statements in Certain Cases
Defined contribution plans will be required to send a paper benefit statement no less than once per year. (For ERISA-covered plans, the other three required quarterly statements can be delivered electronically.) For defined benefit plans, a paper benefit statement...
Long-term Care Contracts Purchased with Retirement Plan Distributions
Long-term care contracts purchased with retirement plan distributions. This provision will permit retirement plans to distribute up to $2,500 per year for the payment of premiums for certain specified long term care insurance contracts. Such distributions are exempt...
Review & Report to Congress Relating to Reporting & Disclosure Requirements
Review and report to Congress relating to reporting and disclosure requirements – Multi-agency deadline 12/29/2025. With combined efforts, The Treasury Department, DOL, and Pension Benefit Guaranty Corporation (PBGC) are ordered to evaluate recording and disclosure...
Higher Catch-Up Limits for Employees at age 60, 61, 62, & 63
Higher catch-up limits for employees at age 60, 61, 62, and 63. Beginning at age 50, participants can contribute an extra $7,500 (indexed annually) into a workplace 401(k) or 403(b) retirement plan, called a “catch-up” contribution. The new provision permits an...
Automatic Enrollment Expanded in Retirement Plans
Automatic enrollment expanded in retirement plans. Statistics show that automatic enrollment is successful in nearly doubling plan participation. This provision will require 401(k) and 403(b) plans created on or after December 29, 2022 to automatically enroll new...
Defined Contribution Plan Consolidation Notices
The IRS and DOL are instructed to modify guidelines by 12/29/2024 to allow a defined contribution plan to consolidate certain required plan notices.Applicable plans: ERISA 401(k), and 403(b) plans
Asset Allocation Funds Performance Benchmarks
This provision orders the Labor Secretary to revise DOL regulations so that when an investment uses mixed asset classes it can be measured alongside a blend of broad-based securities market indices, provided that: The index blend: Relatively equals the fund’s asset...