Recent legislation now requires that automatic enrollment be part of most new 401(k) and 403(b) Plans. But making it work requires coordination.
That coordination starts with understanding how the process works.
Until recently, participants receiving matching and nonelective contributions could only have had those contributions treated as pre-tax – not subject to withholding for federal income tax, Social Security or Medicare tax.
That’s changed. Recent retirement law changes permit participants to
When a tax-exempt organization decides to establish a retirement Plan, the starting point is usually whether to adopt a 401(k) Plan or a 403(b) Plan.
While that’s an important decision, it may not be the best place to start.
Most
Every employer maintaining a pre-approved defined contribution retirement plan—including 401(k) and 403(b) Plans will need to update their documents by December 31, 2026 to maintain reliance on IRS approval.
401(k) Plans will need to adopt amendments reflecting SECURE 2.0, the
Employers who have adopted a pre-approved Pension Plan – either traditional Defined Benefit or Cash Balance – must restate their plans by March 31, 2025 to stay in compliance with the Internal Revenue Code (“Code”) and Internal Revenue Service (“IRS”)
Here’s why we think so.
Since the passage of ERISA in 1974, retirement plan legislation has been a series of technical and tax-related changes. The Revenue Act of 1978 started out the same way with its focus on:
Kids will outgrow their clothes. Sometimes that happens with retirement plans.
If you have a SIMPLE IRA, it may have fit in the beginning. But if you want to change to a 401(k) plan in 2024, you need to take
Miss the deadline
From the beginning of 401(k) plans, the retirement industry has focused on the performance of individual funds as the key driver of retirement readiness. But a study by the Putnam Institute in 2006 and repeated in 2012 concluded that increasing
Because there are now five generations in the workforce for the first time:
The challenge to create
