Newsletter Articles

 

We’ve archived a series of our Benefit Insights newsletters to help answer questions you might have about the operation and administration of retirement plans, as well as periodic legislative changes.

You’ll find new articles here every quarter.

Understanding the CARES Act, Upcoming Compliance Deadlines for Calendar-Year Plans, Ask the Experts

Understanding the CARES Act, Upcoming Compliance Deadlines for Calendar-Year Plans, Ask the Experts

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 well as loans and other concessions for businesses, the bill includes the following provisions to help participants and employer sponsors of retirement plans.

How the SECURE Act is Changing Retirement | Upcoming Compliance Deadlines

How the SECURE Act is Changing Retirement | Upcoming Compliance Deadlines

On December 20, 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law.

The SECURE Act represents some of the most significant changes to retirement plan law since the passage of the Pension Protection Act of 2006, over thirteen years ago. The provisions of the Act are broad ranging and span many different effective dates.

IRS Announces Limits for 2020 | Safe Harbor 401(k) Plan Design | Upcoming Compliance Deadlines for Calendar-Year Plans (12/31) | The Final Rule on Hardship Distributions

IRS Announces Limits for 2020 | Safe Harbor 401(k) Plan Design | Upcoming Compliance Deadlines for Calendar-Year Plans (12/31) | The Final Rule on Hardship Distributions

On November 6th, 2019, the IRS announced the cost of living adjustments affecting the dollar limitations for retirement plans.
Contribution and benefit increases are based on a calculated change in the Consumer Price Index and are intended to allow participant contributions and benefits to keep up with the “cost of living” from year to year. Here are some highlights from the 2020 changes:

It’s Testing Season! | Know Your Options | The 401(k) Turns 40

It’s Testing Season! | Know Your Options | The 401(k) Turns 40

Qualified plans must perform annual testing to be sure that the plan doesn’t unfairly discriminate in favor of “highly compensated employees” (HCEs) or exceed the contribution limits set forth by the IRS. Depending on your plan provisions, it isn’t just one calculation, but a series of tests that show that your plan is not discriminatory. If your plan is audited, the auditor is looking for proof of this compliance.

Automatic Enrollment is on the Rise | Protect Your 401(k)

Automatic Enrollment is on the Rise | Protect Your 401(k)

With the future of Social Security in question, it is becoming ever increasingly important for workers to self- prepare for post-retirement living. Studies show that approximately one out of every three eligible workers choose NOT to participate in their employer-sponsored 401(k) plan. Offering automatic enrollment in your 401(k) plan is a way for you, as Plan Sponsor, to help lend a hand to employees that are not fully aware of the significance of having a post-retirement source of revenue.