…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…
…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…
…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…
…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…
…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…
…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…
…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…
…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…
…seriously considering a DB plan. But it’s time to take another look because, for smaller, more mature companies, DB plans can be a great vehicle to help employees prepare for retirement. You may be surprised to learn that they are actually a leading choice for…
…retirement savings options for non-profit employees by allowing groups of non-profits to join together to offer retirement plans to their employees. Giving individuals aged 60 and older more flexibility to set aside savings as they approach retirement. Increasing the required minimum distribution age to 75….