…could be a critical notification deadline in the case of an excess deferral, depending on a plan’s terms and conditions. If a 401(k) plan participant makes salary deferrals to more than one plan of unrelated employers during the same tax year, it is possible to…
…in individual account plans like 401(k), 403(b) and governmental 457(b) plans under the following structure. Optional automatic enrollment At the employer’s discretion, automatic enrollment can apply with deferrals beginning at 3% and capped at $2,500 (or a lower amount at the employer’s discretion). The $2,500…
…must be invested in a qualified default investment alternative (QDIA) unless the participant elects otherwise. Participants can withdraw auto-deferrals made during a 90-day period after initial deferral. The provision applies to employers adopting a multiple-employer plan (MEP) after 12/29/2022, even if the MEP was established…
…an eligible employer sponsored plan at a new employer. Fiduciary/prohibited transaction issues Generally, the selection and monitoring of an automatic portability provider will be (as it is with the retention of any retirement plan service provider) a fiduciary act. The transfer by an automatic portability…
…relief, COVID induced changes in our work environment and the hiring challenges many employers face- the defined benefit plan can become a game changer for many employers. Join us as we discuss: The hiring environment and talent shortage Regulatory Pension Relief Liability Driven Investing Plan…
…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…
Our PENTalk provides an overview of the Pentegra Defined Benefit Plan for Financial Institutions Pension Valuation Process and Results. Included in the PENTalk will be a discussion of: The Multiple Employer Plan Structure Principal Fiduciary Roles and Responsibilities Results for the Plan Year 7/1/2022 –…
…deemed to occur when an employer reduces its workforce (and plan participation) by 20 percent. The turnover rate is calculated by dividing employees terminated from employment (vested or unvested) by all participating employees during the applicable period. The applicable period is generally the plan year…
…no ongoing employer contributions to the SEP IRA or SIMPLE IRA. A SEP IRA or a SIMPLE IRA is considered “ongoing” if the sponsoring employer makes an employer contribution for the plan year ending with or within the IRA owner’s taxable year in which the…
…can’t be more than two points more than that of the non-highly compensated employees to pass this test. The ACP test – which stands for “Actual Contribution Percentage” test – compares employer matching contributions between these two groups. And the Top-Heavy test which determines if…
…They can have modest limits on contributions or can go up to multiple six figures in DB and cash balance plans. The key driver here is that unless a client is simply focused on the least expensive way to offer any sort of “retirement benefit,”…