SECURE 2.0 introduced an extensive series of retirement plan provisions that can be both beneficial yet demanding , particularly in terms of application . Here are some key considerations for three SECURE 2.0 provisions that are top of mind. 1. Roth Only...
Retirement Plan Law
What Do You Need To Know About “Long-Term, Part-Time Employees”?
First – Who is considered a Long-Term, Part-Time Employee (LTPTE)? Under current law, LTPTEs are any employee who, in each of the last three consecutive years (beginning in 2021), worked between 500 and 999 hours. And, this currently only applies to 401(k) plans....
2023 Brings Significant Changes To Form 5500
The Department of Labor (DOL) announced its annual revisions to the IRS Form 5500. What Is IRS Form 5500? Why Is It Important? An employer sponsoring a qualified retirement plan, covered by ERISA, must file IRS Form 5500 with the DOL and IRS each year...
Summer 2023 Tax Deadline
You might be interested in an important compliance deadline coming up for defined contribution plans and a quick reminder about filing IRS Form 5500. October 16th - Extended deadline to file IRS Form 5500 to the Department of Labor (DOL) for plans with a December 31st...
Treatment of student loan payments as elective deferrals for purposes of matching contributions
Employees may begin receiving matching contributions on their student loan repayments. Additionally, for purposes of the nondiscrimination test, these contributions may be tested separately from standard matching contributions. Further guidance is expected regarding...
Insurance Dedicated Exchange Traded Funds
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...
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The nonrefundable Saver’s Credit for some IRA and retirement plan contributions will be superseded by a Federal Saver’s Match contribution that is deposited into an IRA or retirement plan.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...