SECURE 2.0 Catch-Up Contributions – Part 2: Mandatory Roth Catch-Up
SECURE 2.0 Catch-Up Contributions Part 2: Mandatory Roth Catch-Up Contributions Coming in 2026 This post is Part 2 of our series covering the two major catch-up contribution changes under SECURE 2.0. In Part 1, we covered the new “super catch-up” for employees aged 60 through 63. Now we shift gears to focus on a change […]
SECURE 2.0 Catch-Up Contributions – Part 1: Super Catch-Up
SECURE 2.0 Catch-Up Contributions – Part 1: New Super Catch-Up Boosts Limits for Ages 60–63 SECURE 2.0 introduced two big changes to catch-up contributions in retirement plans—and both will require action from plan sponsors, payroll teams, and advisors. Because each one deserves focused attention, we’re covering them in a two-part series. This post focuses on […]
Long Term Part-Time Employee Rules
Long Term Part-Time Employees: What to Know About New Eligibility Rules You may have noticed a theme emerging in recent blog posts here at ERISA.com – SECURE 2.0 and its emphasis on improving employee retirement savings. In this installment, we will continue the theme by discussing Long Term Part-Time Employees (or LTPTs, as we’ll call […]
SECURE 2.0 Tax Credits to Expand Retirement Plan Access
Expanding Retirement Plan Access: How SECURE 2.0 Tax Credits Help More Americans Save One of the most effective ways to improve retirement outcomes is to ensure that more Americans have access to a workplace retirement plan is. Recognizing this, Congress passed the SECURE 2.0 Act to further incentivize businesses—especially small businesses—to offer retirement plans by […]
SECURE 2.0 & Auto Enrollment
SECURE 2.0 and Automatic Enrollment: What You Need to Know SECURE 2.0 Section 101 will bring a big change to new workplace retirement plans: mandatory automatic enrollment and automatic increases in savings rates starting in 2025. This change helps employees save for retirement more easily by starting them right away. What Is Automatic Enrollment? In […]
Identifying Related Employers: Part II Control Groups
There are two major types of Related Employers: Affiliated Service Groups and Control Groups. Part I of this series discussed the general purpose of Related Employer rules, how they affect plan testing, and explained Affiliated Service Groups. Why are the Control Group rules important? As noted in Part I, ERISA considers all entities that are […]
Identifying Related Employers: Part I – Affiliated Service Groups
Preventing owners and highly compensated employees from abusing retirement plans’ tax benefits is one of the primary policy goals of the Employee Retirement Income Security Act. One way ERISA accomplishes this is grouping certain commonly owned business entities together as a single employer for plan testing. These rules are referred to as the Affiliated Service […]
New 2021 Contribution Limits
Each year, the IRS adjusts the contribution limits for qualified retirement plans to account for cost of living increases. On October 26, 2020, the IRS published contribution limits for 2021 in Notice 2020-79. Cost of Living Increases While several limits remained unchanged for the upcoming year, there are a few notable limit increases. The UNCHANGED […]
What Does E-Delivery Mean for My 401(k) Plan?
In May, the DOL passed a new regulation that allows plan administrators to deliver retirement plan documents to participants online. This is a significant departure from previous rules surrounding plan disclosures. So what does this mean for your 401(k) plan? Participants first receive an Initial Notice of Internet Availability First, plan participants will receive an […]
Why You Should Consider Using an Investment Manager Instead of a Financial Advisor
Generally speaking, there are two types of investment service providers in the retirement plan space, financial advisors and investment managers. At a surface level there are a few differences between the two. First, ERISA only defines the term investment manager.1 To be an investment manager, a provider must satisfy three requirements: Have independent power to make decisions about all plan assets Be a registered […]