The rules behind required minimum distributions (RMDs) are changing again, and this is not that end. Section 401(a)(9) was enacted in 1984, and for 35 years remained mostly unchanged. Generally, participants were permitted to delay distributions from qualified plans, 403(b) and governmental 457(b) plans until April 1 after the year in which ...
By: Lyndsey Barnett and Michaela Taylor*
Catch-up eligible individuals enrolled in an employer-sponsored retirement plan have new changes coming their way under Secure 2.0. Beginning in 2024, individuals age 50 or older by the end of the calendar year in which the plan year ends, that made over $145,000 in wages in the previous year with the same ...
By: Lyndsey Barnett and Michaela Taylor*
As we have mentioned in previous insights, SECURE 2.0 has provided several opportunities for plan administrators to assist participants in tackling emergency expenses. Two of these provisions updated the administration of hardship withdrawals to plan participants.
Previously, the IRS permitted ...
Our webinar series continues on SECURE 2.0, the latest legislation passed by Congress at the end of 2022. Building on the success of the original SECURE Act of 2019, this new legislation aims to further expand access to retirement accounts, promote participation, and preserve savings. Our experts broke down the key provisions of SECURE 2.0 and ...
This week, the IRS issued proposed regulations regarding the use of forfeitures in qualified retirement plans, including 401(k) plans. The proposed regulations include a deadline for the use of forfeitures in defined contribution plans and clarify the purposes for which forfeitures can be used in a defined contribution plan. The regulations ...
At the end of 2022, Congress passed SECURE 2.0. This legislation builds on the original SECURE Act (Setting Every Community Up for Retirement Enhancement Act) of 2019 that expanded access to retirement accounts, promoted participation, and preserved savings. This legislation adds benefits to both retirement plan sponsors and their ...
In law school, students flocked to any meeting that offered free pizza. Free pizza got me roped into being the secretary of the environmental law club in law school, which was an area I had no knowledge or real interest in. But they served pizza at the meetings and I was broke, so I attended! It always amazes me that even at our law firm, people show up ...
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By: Lyndsey Barnett and Michaela Taylor*
As we have mentioned in previous insights, the SECURE 2.0 Act, which was passed in December, has ushered in new ways for employers to assist their employees in building savings for the future. Two of these optional provisions specifically address expenses for emergencies.
Last year, the Consumer ...
Congress issued guidance on correction of plan errors through SECURE 2.0. The source of the guidance was unexpected, as guidance on plan administration has typically been left to the purview of the IRS. Section 301 of the Act addresses correction of plan overpayments and amends sections of both ERISA and the Code. These additions codify the ...