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...
Required Minimum Distributions
Tax Talk – Retirement Plan Compliance Deadlines
(Read time 1:49) In this edition of Tax Talk, we provide updates on critical compliance deadlines for defined contribution (DC) plans. The schedule provided below assumes your plan operates on a calendar year basis. December 1st, 2023 Various annual notices must be...
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...
Modified Retirement Plan Notices to Unenrolled Participants
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...
Surviving spouse election to be treated as employee
Allows a surviving spouse of a participant who dies before commencing RMDs to elect to be treated as the employee for RMD purposes, thereby delaying when RMDs must commence.
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...
Simplifying SECURE 2.0 Act on- Required Minimum Distributions (RMD) and Reduced Penalties in 2023
The SECURE 2.0 Act raises the age from 72 to 73 when individuals must begin taking RMDs from their retirement accounts. Reduced penalties include: Failure to take an RMD is reduced from 50% to 25% The penalty is further reduced to 10% if a failure is corrected SECURE...