First responders will be allowed to exclude service-connected disability pension payments from gross income after reaching retirement age. Applicable plans: 401(a), 401(k), 403(a), 403(b), governmental 457(b) plans. Effective 1/1/2027.
401(k)
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
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...
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
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...
The Hidden Costs of Borrowing from Your401(k) Retirement Plan
Written by: Jeff Feld, CPA and Principal Taking a loan from your 401(k) retirement plan may seem like an attractive option because you are borrowing from yourself. However, a closer look exposes the potential drawbacks and hidden costs associated with this decision....
Starter 401(k) and Safe Harbor 403(b) plans for employers with no retirement plan
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...
Cost of Living Adjustments for 2021
On October 26, 2020, the IRS announced the Cost of Living Adjustments affecting the dollar limitations for retirement plans. Contribution and benefit increases are intended to allow participant contributions and benefits to keep up with the “cost of living” from year...
Understanding the CARES Act
On Friday, March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), a massive relief bill for those suffering as a result of the Coronavirus pandemic, was signed into law. Besides the generalized financial relief afforded to individuals, as...