The third phase of updates to Form 5500, Annual Return/Report of Employee Benefit Plan, was recently released. This guidance addresses changes related to provisions in the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE 1.0).
Read MoreWithholding elections for nonperiodic distributions are now made on the new IRS Form W-4R.
Read MoreGiven the complexity involved in operating a retirement plan, it’s not surprising that from time to time there may be miscues, such as operational, document, or even eligibility failures. Some can be resolved without the direct involvement of the IRS, under the agency’s Self-Correction Program within the broader Employee Plans Compliance Resolution System. Other failures must—or, if an employer chooses, can—be corrected under the IRS Voluntary Correction Program (VCP).
Read MoreEffective for 2024 and later plan years, employers may permit participants who are considered non-highly compensated employees to contribute up to $2,500 (indexed), or less if dictated by the plan, to pension-linked emergency savings accounts (PLESAs) as part of their 401(k), 403(b), or governmental 457(b) plan.
Read MoreAlthough there are a few similarities between IRAs and HSAs, the beneficiary options are different.
Read MoreWhen an employer establishes a 401(k) plan, the IRS expects the plan to have longevity. If the employer terminates the 401(k) plan, the employer should have a good reason for doing so.
Read MoreThe IRS issued Notice 2023-23, guidance that addresses required minimum distribution (RMD) reporting by IRA trustees, custodians, and issuers.
Read MoreBecause auto-enrollment is so effective, Congress has included in the SECURE 2.0 Act a provision that will require most newly established 401(k) and 403(b) plans to include such a feature, starting in the 2025 plan year.
Read MoreThe SECURE 2.0 Act gives certain employers a general business tax credit for immediately including military spouses in their defined contribution plan.
Read MoreThe SECURE 2.0 Act has shortened the time necessary to allow part-time workers access to 401(k) plans.
Read MoreThe SECURE 2.0 Act makes it easier for individuals who own the entire interest in an unincorporated trade or business to make elective deferrals to a 401(k) plan for their first plan year.
Read MoreThe ink was barely dry on the President’s signature when the calls started coming in about the SECURE 2.0 Act. And as you might expect, the questions weren’t all about what new provisions this legislation contained.
Read MoreSECURE 2.0 has now opened a new window, allowing eligible retirement plan participants and IRA owners to make larger catch-up contributions.
Read MoreHealth savings accounts (HSAs) can be easy to offer employees and benefits everyone. But employers should know what their responsibilities are for their employees’ HSAs.
Read MoreHere’s a refresher on how to know the reporting differences between rollovers, postponed/late contributions, and repayments.
Read MoreAn in-plan Roth rollover (IRR) is a rollover of non-Roth assets to a designated Roth account under the plan. Learn more about the plan and notification requirements for an employer plan to offer IRRs.
Read MoreThe SECURE Act of 2019 has been followed by a package of several bills, which have collectively been dubbed “SECURE 2.0.” These bills were eventually combined into a single bill, titled The SECURE 2.0 Act of 2022. This bill was included in the Consolidated Appropriations Act of 2023, which was signed into law on December 29, 2022.
Read MoreThe SECURE Act of 2019 increased the RMD age from 70½ to 72 years. Now the SECURE 2.0 Act of 2022 is once again delaying the RMD age—from 72 to 73—starting in 2023. And wait, there’s more. In 2033, the RMD age will increase to age 75.
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