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...
Retirement Plan Law
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...
Lost and Found Retirement Savings
In 2021, nearly 25 million 401(k) accounts with funds valued at approximately $1.35 trillion were lost.[1] To help this issue, a database will be built and managed at the Department of Labor (DOL), allowing retirement plan participants to search for the contact...
Retirement and Workforce Facts: Did You Know?
An average of 67 million Americans per month will earn Social Security benefits in 2023, averaging over one trillion dollars in benefits paid. (Reference: Social Security Administration) Only 60% of workers ages 55 and older have attempted to estimate the amount of...
Required Minimum Distribution (RMD) Changes
The SECURE 2.0 Act raised the age for taking RMDs from 72 to 73 effective January 1, 2023. To clarify the distinction regarding when an account holder should begin taking RMDs, those who turned 72: In 2022, must take their distribution no later than April 1, 2023. In...