The Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act and Notice 2024-77 provide the latest official guidance on handling inadvertent benefit overpayments (IBOs). This guidance is crucial for plan sponsors to ensure compliance and avoid disqualification of their plans.
Read MoreThe Internal Revenue Service (IRS) recently released final regulations that provide insight on how to administer the catch-up contribution requirements under the SECURE 2.0 Act of 2022 (SECURE 2.0).
Read MoreRetirement marks a major life transition—and with it comes a series of financial decisions that can shape your clients’ future. One of the most important choices individuals will face is what to do with money in a qualified retirement plan (QRP), such as a 401(k) or 403(b) plan. For many retirees, rolling those assets into an individual retirement account (IRA) offers flexibility, control, and long-term benefits.
Read MoreMost pretax retirement savings are taxed as ordinary income, taxed at one’s marginal tax rate. But under specific circumstances employer securities can be taxed differently.
Read MoreIn 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act changed eligibility requirements so that employees who are credited with at least 500 hours in three consecutive years (beginning on January 1, 2021), must be allowed to participate under a 401(k) plan’s salary deferral provision.
Read MoreMany employers believe that offering loans in qualified retirement plans is a major benefit. Participants have easier access to their savings, in case of an unexpected financial need, and the employer can elect to use payroll deductions to credit loan payments back to the participants’ accounts for administrative ease.
Read MoreElecting a plan’s definition of compensation may be one of the most important elections in any plan document. The elections made will significantly affect the plan’s design and its operations.
Read MoreIRAs and qualified retirement plans (QRPs) are intended to be used for retirement. Therefore, the tax laws and regulations encourage people to leave their money in an IRA or QRP until they retire. If distributions are taken from an IRA (including an IRA holding SEP contributions) or QRP before the account owner reaches age 59½, a 10 percent early distribution penalty tax is assessed on the taxable amount of the distribution, unless a penalty tax exception applies.
Read MoreAlthough multiple employer plans (MEPs) have been around for decades, they haven’t always had a starring role in the retirement industry. That, however, may be changing.
Read MoreWhen a business is acquired or sold, the employer’s business structure may change (e.g., a sole proprietorship may become a corporation); the employer may join or leave a controlled or affiliated service group; or the employer may change for one or more individuals. Such business transactions could affect many aspects of the business’s qualified retirement plan.
Read MoreWith tax season upon us, many employers are determining when to fund and deduct the employer contributions that they’ve allocated to their retirement plans. Different contribution deadlines apply based on the type of contribution being made and the business tax return due date.
Read MoreThe Department of Labor (DOL) recently issued a final amendment to the Voluntary Fiduciary Correction Program (VFCP), incorporating a Self-Correction Component (SCC) for eligible transactions under the program.
Read MoreThe Treasury Department announced March 11, 2025, that it will not enforce penalties or fines associated with the beneficial ownership information reporting rule under existing regulatory deadlines pursuant to the Corporate Transparency Act (CTA).
Read MoreWith the arrival of a new year comes the availability of several SECURE 2.0 provisions that affect how workers can save for their retirement.
Read MoreThe Internal Revenue Service (IRS) has issued a proposed regulation, providing guidance for employers that are required to include an automatic enrollment provision with their 401(k) or 403(b) plan in order to comply with the SECURE 2.0 Act of 2022 (SECURE 2.0).
Read MoreWorking with plans that include both nonunion and union employees is not as intimidating as it may seem. There are a few things to keep in mind if you work with a plan that manages both employees that are a part of a union and those that are not union employees.
Read MoreDuring the Great Depression, a common practice among contractors bidding for federal contracts was reducing workers’ wages; and thereby, their labor costs, to win bids. While prevailing wage laws had existed on a state and local government level for more than three decades at this time, the first and most significant federal law–protecting the workers’ and their families’ welfare–was the Davis-Bacon Act of 1931.
Read MoreUnder most circumstances, a plan sponsor may not distribute plan assets to a participant without the participant’s consent as long as the distribution is “immediately distributable.”
Read More
