"IRS Notice 2022-55, published at noon today (Friday, October 20)

https://www.irs.gov/pub/irs-drop/n-22-55.pdf

• Effective January 1, 2023, the limitation on the annual benefit under a defined benefit plan under section 415(b)(1)(A) of the Code is increased from $245,000 to $265,000....
• The limitation for defined contribution plans under section 415(c)(1)(A) is increased in 2023 from $61,000 to $66,000....
• The limitation under section 402(g)(1) on the exclusion for elective deferrals described in section 402(g)(3) is increased from $20,500 to $22,500.
• The annual compensation limit under sections 401(a)(17), 404(l), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $305,000 to $330,000.
• The dollar limitation under section 416(i)(1)(A)(i) concerning the definition of “key employee” in a top-heavy plan is increased from $200,000 to $215,000....
• The limitation used in the definition of “highly compensated employee” under section 414(q)(1)(B) is increased from $135,000 to $150,000.
• The dollar limitation under section 414(v)(2)(B)(i) for catch-up contributions to an applicable employer plan other than a plan described in section 401(k)(11) or section 408(p) for individuals aged 50 or over is increased from $6,500 to $7,500."

"The plan set up by payroll match, but the employee max out earlier of the year, is that wrong to keep allocation match to employee even though there are no employee contributions in later payrolls? Match is immediately vested and the plan is not a safe harbor plan."

"An employee's deferrals are about to hit the 402(g) limit. Let's say he contributed $20k, and still has $500 left. His original contribution percentage is 10% pretax and 5% Roth. Either a 10% pretax or a 5% Roth contribution will be over $500. How should payroll split this $500? Weighted average? Evenly?"

"I have a terminated participant that we sent distribution instructions. Back in June he called with questions. During the phone call he indicated that he was divorced and his former spouse was entitled to part of his 401(k) account. He stated the former spouse was supposedly having her attorney prepare the QDRO. As of today we have not received a QDRO. However the terminated participant has requested his distribution (online). The plan does not require spousal consent. Do we hold off on processing the distribution since the participant did indicate his former spouse was entitled to a benefit? Or do we process the distribution?"

"Plan year end is 9/30/2022. Are RMDs done based on 12/31/2021 balance, or on the 9/30/2021 balance?"