This change permits an employer that does not sponsor a retirement plan to offer a starter 401(k) plan or safe harbor 403(b) plan. A starter plan would generally require that all employees be automatically enrolled in the plan at a 3% to 15% of compensation deferral...
2024
Exemption for certain automatic portability transactions
Currently, in most cases, a plan may distribute a terminated participant’s account balance without their consent if the balance is under $5,000 – a “force-out” distribution. Current law also requires an employer to roll over this distribution into a default IRA if the...
Retirement Emergency Expenses Withdrawals
Participants may withdraw up to $1,000 within a year from their retirement account to pay for an emergency without penalty. The full distribution amount must be repaid within 3 years, and no further emergency distributions are permissible until repaid.