Did you receive a Late Filing Notice for your Form 8955-SSA? If so, don’t panic! The American Retirement Association has told its members: “The IRS confirmed that the issue was a programming glitch, which it fixed on Wednesday [August 23rd,…
SECURE 2.0: Minimum Contribution Rules Changed for Top-Heavy Plans, A Win for Small Businesses and Their Employees
Updated August 24, 2023 In addition to compliance testing, which compares benefits received by the highly compensated and non-highly compensated employees, qualified retirement plans are subject to a top-heavy test that checks whether account balances of ‘Key Employees’ make up…
SECURE 2.0: Tax Credits for Small Employer Plans
Updated August 24, 2023 SECURE 2.0 significantly increases the available tax credits for small employer plans. This summary provides an overview of the credits and their value to businesses considering a new plan. Credit for Start-Up Administrative Costs First, SECURE…
SECURE 2.0: Student Loan Matching
Updated August 24, 2023 SECURE 2.0 has brought many changes to the retirement space. Among them: student loan matching. This permissible and optional change is of great interest to many employers and plan sponsors, especially those seeking to attract and…
SECURE 2.0 Aims to Simplify and Eliminate Certain Participant Notifications
Updated August 24, 2023 SECURE 2.0 introduced a number of provisions that seek to lessen the administrative burden for employers sponsoring retirement savings programs. Among them, several provisions impacting required plan notices and disclosures. The Department of Labor…
SECURE 2.0: Updated Paper Statement Requirements Allow Room for Electronic Delivery
Updated August 24, 2023 Another provision of SECURE 2.0, in Section 338, has modified the requirement to provide paper account statements effective with plan years beginning after December 31, 2025. Before SECURE 2.0, electronic delivery of these statements was…
SECURE 2.0: Long-term, Part-Time Employee Rules Extended to 403(b) Plans
Updated August 24, 2023 SECURE 2.0 requires 403(b) plans subject to ERISA to conform to the LTPT rules (Read a thorough discussion of the LTPT rules). Certain deferral-only 403(b) plans, church plans, and plans sponsored by governmental entities are…
SECURE 2.0: New Long-term, Part-Time Employee Rules Get a Refresh
Updated August 24, 2023 The 2019 SECURE Act (SECURE 1.0) and the SECURE 2.0 Act of 2022 (SECURE 2.0) have introduced significant changes to retirement plan rules; they aim to set millions of Americans on a path to a more…
SECURE 2.0 Changes Family Attribution Rules
Updated August 24, 2023 When applying retirement plan compliance requirements, certain related employers have long been required to be treated as a single employer due to the controlled group or affiliated service group aggregation rules (you can learn more about…
SECURE 2.0: Expansion of Self-Correction Options
Updated August 24, 2023 When a retirement savings program is operated inconsistently with the language of the plan document, called plan terms, it can put its tax-qualified status at risk leading to loss of deduction for past contributions, back…