…Meanwhile, on May 11, the New York State Assembly passed a bill that automatically enrolls employees at private sector companies with 10 or more employees that do not offer a retirement plan in the Secure Choice Savings program; similar to the Delaware EARNS program, the…
…participant’s compensation up to $66,000 for 2023). An example of a plan-imposed limit would be if the plan document were to specify that employee salary deferrals are limited to 10 percent of a participant’s annual compensation. Finally, a plan’s ADP limit on employee salary deferrals…
…salary deferrals (pre-tax and designated Roth) an individual makes to all of the following plan types: 401(k), 403(b), Savings Incentive Match Plans for Employees (SIMPLE) plans [both SIMPLE IRAs and SIMPLE 401(k) plans[1]] and Salary Reduction Simplified Employee Pension (SARSEP) plans.[2] (Note: A person who…
…maintained by the employer Must file a Form 5500 annually Voluntary employee deferrals Mandatory employer contributions (generally, 3% match or 2% nonelective) Immediate vesting for contribution types Additional information at IRS SIMPLE 401k facts Safe Harbor 401(k) No limit on number of employees Voluntary employee…
…of the year count. That’s important because it can include former employees if they still have an account balance. This reality, plus the annual plan cost of carrying former employees, encourages many plan sponsors to force out former employees with small balances. The Department of…
…employers to follow suit. However, when one considers the circumstances of IBM’s current retirement benefits program, it is easier to see why this seemingly drastic change made sense for IBM … and for its employees as well. That said, it does not mean this strategy…
…December 29, 2022. Certain employers are exempt, including governmental, church, and employers with fewer than 10 employees. Existing plans are This provision is effective for plan years beginning after December 31, 2024. 4. Expanded Coverage for Long-Term Part-Time Employees in 403(b) plans Employees who work…
…guidance: Sponsors may but are not required to include in their plan any type of Roth contribution – employee elective, employer matching, or employer nonelective. The rules currently (pre-SECURE 2.0) applicable to employee elective Roth contributions also generally apply to the new Roth employer contributions….
…additions test and top-heavy test. After-tax contributions are subject to the ACP test—a special 401(k) test that compares the rate of matching and after-tax contributions made by those in upper management (i.e., highly compensated employees or HCEs) to the rate made by rank-and-file employees (i.e.,…
…enactment, for the first 3 years of a new employer’s existence, or to employers with 10 or fewer employees. The “Grab Bag” Notice provides that: For purposes of the exception for plans established before the date of enactment of SECURE 2.0, a plan is considered…
…private-sector retirement and other employee benefit plans in light of recent trends involving ESG investing – which, as the name indicates, revolves around measuring the sustainability and societal impact of an investment, in order to determine the future financial performance of that investment. Falling under…