…a brief overview of just one of the topics covered in IRS Notice 2024-02. We will review the guidance published around some of the other key provisions of SECURE 2.0 in future blogs (e.g., Cash Balance Plans). The information, analyses and opinions set out herein…
…with a huge balance sheet. According the Council on Foreign Relations and the Federal Reserve, the Fed’s assets have expanded to $739 million at the end of 2002 and to $3.5 trillion as of August 2013. In the 1970’s, the role of Fed was officially…
…with an annual lifetime income disclosure, which is designed to illustrate how the participant’s account balance can be converted into an income stream at retirement. Included in the lifetime income disclosure statement are: The account balance; date of starting payments; age at which the annuity…
A compelling feature of a 401(k) type retirement plan has always been the opportunity to contribute money from your current income on a pre-tax basis today – let it work for you over the years – and then pay taxes on the accumulated balance as…
…stock market as they cash in their savings? After all, boomers (i.e. those aged 46-64) have been estimated to own nearly 50% of the U.S equity market. Recent studies by Vanguard1 and others have cast doubt on the theory that boomer retirements will depress the…
…with RMDs. If a qualified retirement plan participant’s account holds cash and an annuity contract, current law requires that the account be bifurcated between the portion of the account holding the annuity and the rest of the account for purposes of applying the RMD rules….
…many employees fail to make an investment election on their own. This creates a need for a default investment in the lineup. A cash fund has no risk, but also has no growth potential. Other investments may have income or growth potential, but expose a…
Some business owners may come to you asking for information on a 401K or a cash balance plan. They may know of these from prior experience, or friendly advice, or they may have done their homework about different retirement plans. As retirement plan experts, we…
…are generally those that are high priced relative to their book value (i.e. the value recognized on the company’s balance sheet), but are projected to have high earnings growth potential. Value stocks generally trade below their book value and are considered by value investors to…
…IRA plan, an employer would not be precluded from establishing another plan (e.g., a cash balance plan) to further maximize contributions. Conclusion SECURE 2.0 provides relief for 2024 and later years for businesses that may wish to switch mid-year from a SIMPLE IRA plan to…
…– which determines if the account balances of key employees is greater than 60% of the total assets held by the plan. We know that the goal of many company owners is to maximize how much you can contribute each year to your retirement. So,…
…the account balances of key employees is greater than 60% of the total assets held by the plan. We know that the goal of many company owners is to maximize how much they can contribute each year to their retirement. So, to avoid uncertainty about…