…employer-sponsored money purchase plans are included in those retirement plans that qualify for the temporary rules enacted under the CARES Act, which allow individuals to make penalty-free withdrawals from certain retirement plans for coronavirus-related expenses. Such plans cover less than one-fifth of private industry workers,…
…Act suspended required minimum distributions from traditional Individual Retirement Accounts (IRAs) and employer-sponsored retirement plans for 2020, waived the 10% tax penalty for early distributions from 401(k), 403(b), 457(b) plans and IRAs, under certain circumstances; and increased the maximum amount of a loan from an…
…might be in the future — $1,000 a month will not go very far. PwC’s report also points out that roughly 63 million individuals in the U.S. – about half of the workforce – do not have access to or participate in an employer-sponsored retirement…
…$6,000 per year to their IRAs, whether or not their employers offer a retirement plan. Contributions to traditional IRAs are tax-deductible. According to Kennedy’s office, in 2017, 50 percent of IRA owners who contributed to their traditional IRAs made the maximum contribution. As of March…
…“re-characterizing” elective deferrals as after-tax contributions to HCEs, and/or making employer contributions on behalf of the non-HCEs in the plan. After evaluating the options, the Pentegra team laid out the solutions. The plan sponsor’s choices were: Refund $41,000 to HCEs or Make an employer contribution…
…to work and 2) are not “five percent owners” (i.e., participants who own five percent or less of the employer) to wait to begin RMDs until April 1 of the year following the later of the calendar year in which the participant Attains the RMD…
…matching and other employer contributions as Roth amounts Effective immediately, this feature permits participants to treat matching and other employer contributions as Roth contributions. This provision will be popular among higher-income participants with large balances in qualified arrangements pursuing a Roth strategy. Clearly, this provision…
…responsible for overseeing the performance of service providers to the plan. So, not only do many employers not realize that they are a fiduciary to the plan, many don’t have the knowledge or experience to properly perform in this capacity. That’s why some expert TPAs…
…from their own retirement accounts to help. The bill would also allow employer-sponsored student loan and tuition payment plans to be tax-free up to $5,250, in what Paul said is “a common benefit new graduates are seeking from employers” in an op-ed explaining his proposal…
…clarifications; the latest of those, IRS Notice 2020-68, includes guidance on the SECURE Act’s new rules regarding 401(k) plan participation by long-term, part-time (LTPT) employees as well as qualified birth or adoption distributions (QBOADs). Under the SECURE Act, employers are permitted – but not required…
…is the federal government’s latest economic stimulus package and the first under President Biden. Key Items Defined Benefit Single Employer Plan Funding Relief Defined Benefit Multiemployer Plan Funding Relief Impacts to Defined Contribution Plans Update on The Securing a Strong Retirement Act of 2020 (SSRA)…
…easily quantified than things like expertise and quality and the care of consulting that we deliver together. When cost is the primary driver, benchmarking is a pretty straightforward quantitative analysis. When you’re prospecting it’s an offensive strategy as you invite employers to look at potential…