Leaderboard

Mistake or not, the participant's actual election was executed, so I say have them fix it going forward and deal with it. Why is it always the collective "we" - plan sponsors, advisors, TPAs, RKs - that are asked to bend over backwards to accommodate a participant's mistake, poor judgment, or lack of attention? When is the participant held accountable for not doing what (s)he is supposed to and then months or years later comes looking for help on situation (s)he could have rectified almost immediately had (s)he paid the slightest attention? I'm sorry, but if I intended to make a PRE-TAX deferral from my pay and my income tax withholdings remained the same, I would have noticed and said something - if not after the first pay period, certainly within a few. Sorry for the rant, and I don't do this administration so I don't deal with these situations - but you all do - and don't you have enough work and have enough plan sponsor and advisor administrative "issues" to fix already? OK, I'm done. Also, it's 9/11, so let's remember those we lost that terrible day and from its aftermath.

YES, YES, YES!!!

Today's CPI-U was issued for August. One more month to go for the full limit change to be known. Here's what we have if the September CPI-U is exactly the same as August: 2025 Estimated limits and the unrounded values: 414(v) Age 50 Catchup: $7,500 (unrounded 7,993) to become $8000, I think the annual inflation rate for September would need to be about 3.165% 402(g) limit: $23,500 (unrounded 23,979) to become $24,000, I think the annual inflation rate for September would need to be about 3.165% 401(a)(17) Comp limit: $350,000 (unrounded 354,080) to become 355,000, I think the annual inflation rate for September would need to be over 9.772% 415 DC annual addition limit: $70,000 (unrounded 70,816) 415 DB limit: $280,000 (unrounded 283,264) 416(i) Key Employee: $230,000 (unrounded 230,152) 414(q)(1) HCE: unchanged: $155,000 (but unrounded 159,992) to become $160,000, the annual inflation rate for September only needs to be just over 0.24%

Milliman has been publishing estimates throughout this year; most recent update was issued August 15.

The citation in the law is at ERISA 105(a)(1)(A)

Work we did on September 11, 2001 and soon after in managing some consequences from that day’s deaths, injuries, casualties, and other harms remains a deep reminder about what matters in every aspect of our lives and faiths.

Let's assume that no fraud is involved in the election process. Had the election been made on paper, there would be no basis for challenging the election other than the participant's misunderstanding. If the computer system was designed to confirm and reconfirm the election before formally accepting it on behalf of the plan, then there would be no basis challenging election. If the computer system is unforgiving, then it is more credible that the participant just clicked the wrong thing and made a mistake. Under a confirm and reconfirm process, the participant enters there election, the system displays a the election along with a short description of the election (e.g., "You elected to defer x% of your salary as a Roth deferral. Your Roth deferral will not reduce the withholding of income taxes from your paycheck. If your election is correct, please on the Accept button. If your election is not correct, click on the Cancel button." If the participant clicks on the Accept button, the election is recorded by the system with a date and time stamp, and becomes irrevocable. I have seen a handful of situations where a participant elects a Roth deferral and calls up HR/Benefits/Recordkeeper after receiving their paycheck to demand that their election be changed. In most of these situations, the participant did not understand that their net pay was going to go down by the amount of the Roth deferral and they experienced a form of sticker shock.

Unless it is a self-directed plan, then quarterly is required.

There are defined contribution plan that can generate a statement on a daily basis. Most send a statement monthly, some quarterly and I have seen a few that only value Participant's account only on December 31st each year. The citation from Gina seems to confirm that 12 months is the mandatory time for benefits statements.

I've given many presentations on S2.0 and this is something I bring up a lot. A lot of payroll is done only as a means to an end with respect to a larger operational system. I have a trucking company as a client, and they use software that does payroll, sure, but also tracks everything about miles driven, trucking routes, assigning jobs to truckers, tracking the trucks (maintenance, miles,, etc.) Are they really going to spend a bazillion dollars on this? I hope the answer is yes but really who knows.