Newsletter Articles

 

We are pleased to provide periodically published industry articles that cover topics which may affect the operation and administration of your retirement plan.

Give them a read and let us know if you have questions about how the information may apply to your situation.

The Gift That Keeps Giving: Secure 2.0!

The Gift That Keeps Giving: Secure 2.0!

Effective January 1, 2025, plans may permit participants aged 60-63 to make catch-up contributions over the regular catch-up limit.

Plans have long been permitted to offer participants age 50 and older the opportunity to make catch-up contributions that exceed the general statutory limit on elective deferrals. For 2024, for example, a participant aged 50 or older could make an annual catch-up contribution of up to $7,500 over the general annual deferral limit of $23,000.

Upcoming Compliance Deadlines for Calendar-Year Plans

Upcoming Compliance Deadlines for Calendar-Year Plans

December 1st Participant Notices – Annual notices due for Safe Harbor elections (note that some plans are no longer required to distribute Safe Harbor notices), Qualified Default Investment Arrangement (QDIA), and Automatic Contribution Arrangements (EACA or QACA)....

RMD Reminder

RMD Reminder

Required Minimum Distributions (RMD) should be paid by December 31 each year to participants who have reached age 73. However, a participant may elect to delay their first distribution until April 1 of the following year. If the first distribution is delayed, two distributions will be paid in the same year. The plan document may allow participants who are currently employed to delay distributions until termination of employment, although participants who own more than 5% of the company that sponsors the plan are required to take their RMD regardless of employment status.

Higher Catch-Up Contribution Available in 2025

Higher Catch-Up Contribution Available in 2025

A catch-up contribution is available for plan participants starting in the year age 50 is reached. For these participants, the annual deferral limit can be exceeded by the catch-up amount.

Preventing Late Deposits

Preventing Late Deposits

As the time approaches to complete your annual data collection, you may be asked if any deposits to the plan were not made in a timely manner. Money withheld from a participant’s paycheck as pre-tax deferrals, Roth deferrals or loan repayments must be contributed to the 401(k) or 403(b) plan within the time frame specified by the Department of Labor (DOL). Although the exact requirements can vary depending on the plan, deposits must be made as soon as it is administratively feasible to do so.

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