2024

Important SECURE 2.0 and Interim Amendment Update

BackgroundThe Internal Revenue Service (IRS) published Notice 2024-03 on December 20, 2023, including a “2023 Cumulative List” outlining certain plan provision requirements and amendment deadlines. Plans using a pre-approved document are required to adopt interim...

Navigating Change: Some Changes to the Attribution of Ownership Rules

As a plan sponsor, it is important to understand your organization’s ownership structure to ensure compliance with the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code (IRC). Neglecting a controlled group or affiliated service group member...

Benefit from New and Enhanced Tax Credits!

This articles covers: What Are the Available Tax Credits When Starting a New Retirement Plan? Startup Tax Credit Employer Contribution Tax Credit Auto-Enrollment Tax Credit Now is the Best Time Than Ever to Start a New Retirement Plan!   See details on this...

SECURE 2.0 Key Considerations

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...

Clarification of substantially equal periodic payment rule

Current law imposes a 10% additional tax on early distributions from tax-preferred retirement accounts, but an exception applies to substantially equal periodic payments that are made over the account owner’s life expectancy. This provision provides that the exception...

Increased time to adopt beneficial plan amendments

Discretionary amendments that increase participants’ benefits or add nonelective contributions may be adopted by the due date of the employer’s tax return, plus extensions, rather than by the end of the plan year in which the amendment is effective. Note that this...

Hardship withdrawal rules

Under current law, the distribution rules for 401(k) and 403(b) plans are treated differently. This provision conforms the 403(b) rules to the 401(k) rules whereby 403(b) plans may now make hardship distributions from the same contribution sources as 401(k) plans, and...

Reform of family attribution rule

The aggregation rules that determine the degree of common ownership in a business have been updated in two situations: Inequities addressed where spouses with separate businesses reside in a community property state versus those who reside in separate property states...