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...
2025
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...
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....
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
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 employees starting at a rate of at least 3% but not...
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...