In a merger and acquisition (M&A) situation, where the acquiring organization does not assume the seller’s retirement plan, what is something that the selling company often overlooks with respect to its retirement plan? M&A scenarios are notorious for treating retirement plans as an after-thought. Because…
Through SECURE Act 2.0 (SECURE 2.0), lawmakers are hoping to expand retirement plan coverage, increase retirement savings, preserve retirement income, and simplify and clarify retirement plan rules to help address the retirement savings crisis many U.S. workers are facing. In a nutshell, they want to…
Our consultants regularly receive calls from financial advisors on a broad array of technical topics related to IRAs, qualified retirement plans and other types of retirement savings plans. Recently we received a call from a financial advisor who asked: “Can you summarize the rules and…
Recently, there’s been a lot of coverage in the media about IBM’s redirecting of its 401(k) matching contribution to a fixed-rate cash balance plan. Some of the coverage has been negative, especially around the potential impact on 401(k) plans and whether this may cause other…
Pentegra recently received a question from a financial advisor who asked: “My client has made non-Roth, after-tax contributions to his 401(k) plan for 2023. Will those amounts be reported on his Form W-2 and, if so, where?” The answer to the first part of the…
On December 20, 2023, the IRS released Notice 2024-02, “Grab Bag” guidance on certain provisions of SECURE 2.0 in the form of Frequently Asked Questions (FAQs). Let’s begin with the guidance released around employer Roth contributions. Optional treatment of employer contributions or nonelective contributions as…
This is the second article on the recent IRS “Grab Bag” guidance on provisions of SECURE 2.0 (Notice 2024-02). Let’s dive into the guidance on SECURE 2.0’s cash balance provision. To start with the bottom line: The Grab Bag guidance will generally allow plans that…
This is the third article on recent IRS “Grab Bag” guidance on certain provisions of SECURE 2.0 (Notice 2024-02). In this blog we explore guidance with respect to SECURE 2.0’s plan startup/contribution incentives. Background SECURE 2.0 includes – Increased startup costs credit: An increase in…
This is the last of the articles on recent IRS “Grab Bag” guidance on certain provisions of SECURE 2.0 (Notice 2024-02). In this article, we’ll cover certain other guidance included in the “Grab Bag” relevant to qualified retirement plans: SECURE 2.0’s new automatic enrollment requirement;…
ERISA consultants at Pentegra regularly receive calls from financial advisors on a broad array of technical topics related to qualified retirement plans, IRAs, and other types of retirement savings and income plans. A recent call with a financial advisor from Nebraska is representative of a…
Pentegra recently received a call regarding a common inquiry related to SECURE Act 2.0 of 2022 (SECURE 2.0). “My client wants to terminate its SIMPLE IRA plan during 2024 and start a safe harbor 401(k) plan as allowed by SECURE 2.0. What types of safe…
How does a plan sponsor benefit from its advisor being CEFEX…