…following example. Planning Plus, Inc., established a new 401(k) plan effective 1/1/2023. The plan does not have an automatic enrollment feature. Is Planning Plus’s 401(k) plan grandfathered for purposes of the auto enrollment/escalation mandate? The answer is, “no.” Grandfathered plans, for this purpose, are defined…
…Second, the new law also added an additional credit exclusively for defined contribution plans with 50 or fewer employees. The credit is equal to a percentage of the amount you, as the employer, contribute on behalf of employees, up to a per-employee cap of $1,000….
…business is eligible for the credit, the covered employees were not substantially the same employees who received contributions or accrued benefits in another plan sponsored by the business. Second, the new law also added an additional credit exclusively for defined contribution plans with 50 or…
…11, November 2022 [9] Employee Benefit Research Institutes, Workplace Account Leakage by the Numbers, 2022 [10] Munnell, Alice H., 2022, January 3, “Study on Leakages Narrows the Range of Estimates,” Center for Retirement Research at Boston College [11] 2023 Natixis Defined Contribution Plan Survey …
…and the changes that will happen next year and going forward. To review, a QCD is any otherwise taxable distribution (up to $100,000 for 2023) that an “eligible IRA owner or beneficiary” directly transfers from an IRA to a “qualifying charitable organization” as defined by…
…Roth contributions SECURE 2.0 allows defined contribution (DC) plan sponsors to provide participants the option to take matching or nonelective employer contributions on a Roth basis, effective as of December 29, 2022. With respect to this new provision, the Grab Bag notice provides the following…
…the 3-year credit related to small employer startup costs for employers with no more than 50 employees from 50% to 100% of startup costs. New employer contributions credit: A new 5-year credit for matching and nonelective contributions (to qualified plans other than defined benefit (DB)…
…credit for small employers SECURE 2.0 provides a new small employer (100 employees or less) tax credit for defined contribution (DC) plans that provide that military spouses are, within two months of hire, immediately eligible for and fully vested in employer non-elective and matching contributions…