2024

Roth plan distribution rules

Under current law, RMDs are required to begin prior to the death of the owner of a Roth account in employer sponsored retirement plans (e.g.: 401(k) plans), but RMDs are not required in Roth IRAs. Beginning January 1, 2024, the pre-death distribution requirement for...

Expansion of the Employee Compliance Resolution System (EPCRS)

The law expands EPCRS to allow more types of errors to be corrected under the self-correction method. There is no time limit unless the self-correction is not completed within a reasonable time period after the failure is identified or the IRS catches the failure...

Safe Harbor for corrections of employee elective deferral failures

Under current law, plans with automatic enrollment and automatic escalation features could be subject to significant penalties for mistakenly missing a deferral contribution for an employee. New rules eliminate the penalty for this mistake if the following conditions...

Updating dollar limit for mandatory distributions

Under current law, employers may automatically roll over former employees’ retirement accounts from a workplace retirement plan into an IRA if their balances are between $1,000 and $5,000. The $5,000 limit will now be increased to $7,000.

Emergency savings accounts linked to individual account plans

Provides employers the option to offer their non-highly compensated employees plan-linked emergency savings accounts. Employers may automatically opt employees into these accounts at no more than 3% of their salary, and the portion of an account attributable to the...