…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…
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…
…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…
…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…
SECURE Act 2.0 gives small business owners exciting new tactics and strategies designed to help them achieve business goals as well as retirement savings objectives for themselves and their employees. Learn how to use qualified retirement plans (like a combo 401(k) and cash balance plan)…
…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…
…– 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,…
…withdraw up to $1,000 per year under this new exception (or the excess account balance over $1,000 if lower), but they cannot take subsequent distributions for three calendar years or until the original $1,000 is repaid. Such repayment can be made within three years to…
…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…
…experts at running their retirement plans. And this may be particularly true with educators. As it is, there are so many challenges in primary, secondary, and higher education. More than ever, faculty, staff, and administrators must balance a host of concerns. While providing quality education,…
…gift card. Whatever the incentive, they cannot be paid for with plan assets. The term “de minimis” is not defined; a suggested safe amount is $25. Clarification is needed on whether the amount should be treated as compensation. Plans can increase the cash out limit…