IRS Releases Retirement Plan Limits for 2026! IR-2025-111, Nov. 13, 2025 WASHINGTON — The Internal Revenue Service announced today that the amount individuals can contribute to their 401(k) plans in 2026 has increased to $24,500, up from $23,500 for 2025. The IRS today also issued technical guidance regarding all cost‑of‑living adjustments affecting dollar limitations for […]
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
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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
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2025 Retirement Plan Limits The IRS announced new contribution and benefit limits for 2025, which are contained in Notice 2024-80, released on Nov. 1, 2024. Most significantly, the amount individuals can contribute to their 401(k) plans (as well as 403(b), most 457 plans, and the Thrift Savings Plan) in 2025 has increased to $23,500,
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
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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
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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
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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
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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
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Congress passed the Coronavirus, Aid, Relief, and Economic Security Act (CARES Act) Friday March 27, 2020. This 2 trillion dollar bill provides economic relief to Americans in the midst of the global COVID-19 pandemic. The provisions of the bill relating to retirement plans are designed to provide immediate financial relief to participants who are experiencing
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