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 […]
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 […]
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 […]
Government Filings for Your Retirement Plan
Government filings are an important part of maintaining an employee benefits retirement plan. The DOL and IRS require the plan sponsor of 401(k) plans to file a Form 5500 annually as part of Title I of ERISA. The Form 5500 is designed to provide the Federal Government with plan related information. While this may sound […]
Electronic Delivery Updates for Retirement Plans
On May 21, 2020, the Department of Labor (DOL) announced a final rule for the electronic delivery of retirement plan documents. The new electronic delivery rules allow plan administrators to provide retirement plan disclosures to participants electronically, which reduces plan costs and makes plan disclosures more readily accessible to plan participants. In light of the […]
Discover the Hidden Value in Your Organization’s Retirement Plan for a Post-Coronavirus Pandemic Era
The coronavirus has upended business as usual and we’re all concerned about what our life, career and business will look like in a post-coronavirus pandemic era. And how we respond to the challenges today will determine the success we enjoy tomorrow. An interesting study conducted by Gartner in 2019 found that companies who opted to […]
How to Suspend or Eliminate Your 401(k) Plan’s Match
During times of economic uncertainty, like the COVID-19 situation that we’re currently in, many companies look for ways to reduce expenses to help keep employees on payroll. One of the expenses you may be considering reducing or eliminating is your company’s matching contribution to the retirement plan. This is usually an effective measure that can […]
IRS Finalizes New Hardship Distribution Rules
In October 2019, the IRS responded to the Tax Cuts and Jobs Act of 2017 and the Bipartisan Budget Act of 2018 through its release of the final amendments to the hardship distribution regulations. Thanks to these newly-amended regulations, plan sponsors will now have new customization options for their plan’s hardship distribution rules. There are […]