News Archive

"By December 31, 2026, plan sponsors of certain qualified retirement plans, including 401(k) and defined benefit plans, must amend the plans to incorporate required and discretionary changes under the [CARES] Act, the Setting Every Community Up for Retirement Enhancement (SECURE) Act, and the SECURE 2.0 Act of 2022."  MORE >>

"This announcement provides that the [Treasury Department and the IRS] anticipate that certain portions of final regulations relating to required minimum distributions (RMDs) under section 401(a)(9) of the Internal Revenue Code will apply for the distribution calendar year that begins no earlier than 6 months after the date that final regulations are issued in the Federal Register."  MORE >>

"[S]ponsors of qualified and Section 403(b) plans have until December 31, 2027, to amend their plans for the RMD changes included in the 2025 RAL. The SECURE 2.0 RMD changes that were not included in the 2024 final regulations are expected to be included in a later RAL ... The 2025 RAL also states that the final regulations issued in 2025 regarding SECURE 2.0's Roth catch-up requirement for high earners are expected to be included in the 2027 RAL. If that proves to be the case, plan sponsors will have until December 31, 2029, to amend their plans to include the Roth catch-up provisions."  MORE >>

"The extended deadline applies to IRAs under Internal Revenue Code (IRC) Section 408(a), (b) and (h) as well as Simplified Employee Pension (SEP) arrangements and Savings Incentive Match Plan for Employees (SIMPLE) IRAs. It covers all amendments -- required or discretionary -- related to these laws and any associated regulations."  MORE >>

"[T]his year's list includes changes to the rules for required minimum distributions (RMDs) made by the [SECURE Act] of 2019 (SECURE 1.0) and certain RMD changes made by the SECURE 2.0 Act of 2022. These provisions now have a plan amendment deadline that is one year later than the deadline that applies to most other SECURE 1.0 and 2.0 provisions."  MORE >>

"With year-end approaching, employers should consider reviewing their key administrative, operational and compliance responsibilities for their qualified retirement plans. Year-end is an ideal opportunity for employers to confirm that they have adopted required amendments, that their operational processes are up to date, particularly in light of the ongoing implementation of the [SECURE Act] and the SECURE 2.0 Act ... and that contributions, testing and participant communications are on track. An employer's thoughtful review now can help prevent future compliance issues and ensure that qualified retirement plans continue to operate in the best interests of participants heading into 2026."  MORE >>

"[N]on-governmental 457(b) deferred compensation plans must be amended ... to account for: [1] Extensions relating to commencement of required minimum distributions (RMDs) ... [2] Implementation of the 10-year RMD Rule ... the December 31, 2025 deadline is unique to non-governmental 457(b) plans. "  MORE >>

"[P]lan sponsors that made discretionary changes to their plans during the 2025 plan year should ensure that such amendments are documented in a formal plan amendment before the end of the year.... The general deadline to amend a qualified plan (that is neither a government plan nor a collectively bargained plan) to reflect changes adopted under several recent federal laws (including the SECURE Act, the CARES Act, and SECURE. 2.0) is December 31, 2026."  MORE >>

"The deadline by which a plan sponsor must amend its retirement plans depends on the plan type. Here’s a list of the current amendment deadlines by plan type."  MORE >>

"[S]ponsors of tax-exempt 457(b) plans now face a short timeframe to implement amendments, such as the increase in the required minimum distribution age, which was first raised to 72 under the SECURE Act, then to 73 under SECURE 2.0 ... It is unlikely that the IRS will grant tax-exempt 457(b) plans a last-minute extension, especially given the government shutdown[.]"  MORE >>

"SECURE limited the ability of some inherited IRA beneficiaries to stretch their distributions from the IRA. Non-eligible designated beneficiaries and non-designated beneficiaries are restricted in their ability to stretch distributions beyond 10 years. Eligible designated beneficiaries, such as spouses, are still able to do the inherited stretch."  MORE >>

"[A] 401(k) or 403(b) plan will satisfy the mandatory automatic enrollment requirement only if the plan provides an EACA that covers all employees in the plan who are eligible to elect to have contributions made on their behalf. This includes long-term, part-time employees.... The regulatory amendments are designed to align with the mandatory automatic enrollment requirements described in Section 101 of SECURE 2.0. They also support SECURE 2.0 provisions that allow employers to forego sending annual EACA notices to unenrolled participants and to combine two or more mandatory notices."  MORE >>

"As 2024 comes to a close, it is a good time to review how some of the recent changes under the SECURE 2.0 Act of 2022 and the original SECURE Act impact qualified retirement plans.... [S]ome of the noteworthy changes that recently took effect or will soon become effective: [1] Participation of long-term part-time employees in 401 (k) plans ... [2] Required minimum distributions for Roth 401 (k) contributions ... [3] Surviving spouse can be treated as employee for RMD purposes ... [4] Increased cashout limit ... [5] Higher catch-up contribution limit ... [6] Catch-up contributions required to be Roth contributions ... [7] Notices to unenrolled participants."  MORE >>

"In general, the final regulations provide that the beneficiary, including eligible designated beneficiaries, must continue to take annual RMDs after the death of the taxpayer. The IRA must be fully distributed by the tenth anniversary of the taxpayer's death. The final regulations apply to calendar years beginning on or after January 1, 2025."  MORE >>

"The Final RMD Regulations are effective for distribution calendar years beginning on or after January 1, 2025. For distribution calendar years before January 1, 2025, a good faith, reasonable interpretation of statutory provisions standard applies. The key provisions from the Final RMD Regulations that clarify or expand on the 2022 Proposed Regulations and the Proposed RMD Regulations are discussed [in this article]."  MORE >>

"The IRS stated that it anticipates issuing proposed regulations with respect to Section 403(b) plans that are expected to be similar to the final regulations regarding 401(k) plan LTPTEs. The Notice also confirms that the forthcoming final regulations regarding LTPTEs participating in Section 401(k) plans will apply only to plan years beginning on or after January 1, 2026."  MORE >>

"The five most important rules affecting RMDs: [1] Changes in the age requirement.... [2] Excluding Roth accounts ... [3] Reducing penalties for failing to take an RMD.... [4] RMDs for sole beneficiary surviving spouses.... [5] RMDs for eligible designated beneficiaries."  MORE >>

• Q-1: Do the eligibility rules for ERISA LTPT employees under section 202(c) of ERISA apply to a section 403(b) plan that is not subject to title I of ERISA? A-1: No....
• Q-2: Is a section 403(b) plan that is subject to ERISA required to provide the right to make elective deferrals to a part-time employee who qualifies as an ERISA LTPT employee? A-2: Yes....
• Q-3: May a section 403(b) plan that is subject to ERISA continue to retain a part-time employee exclusion for part-time employees who do not qualify as ERISA LTPT employees? A-3: Yes....
• Q-4: Is a section 403(b) plan that is subject to ERISA required to provide the right to make elective deferrals to a student employee who qualifies as an ERISA LTPT employee? A-4: No....
• Q-5: May an employer with a section 403(b) plan that is subject to ERISA exclude ERISA LTPT employees for purposes of determining whether matching contributions satisfy the nondiscrimination requirements applicable to a section 403(b) plan under section 401(m)(2)? A-5: Yes....
• Q-6: Can an employer use section 403(b)(12)(D) to continue to exclude an ERISA LTPT employee who later becomes eligible to participate in the plan for reasons other than the eligibility rules for ERISA LTPT employees under section 202(c)(1)(B) of ERISA from receiving nonelective or matching contributions or from the application of the nondiscrimination requirements in sections 401(a)(4), 401(m)(2), and 410(b) of the Code? A-6: No....

This notice applies for plan years beginning after December 31, 2024.... The final regulation related to section 401(k) LTPT employees will apply no earlier than to plan years that begin on or after January 1, 2026." [11 pages]  MORE >>

"[W]hile the SECURE Act established the LTPT rules that became required for most plan sponsors on January 1, 2024 ... 'SECURE 2.0' modified and expanded the LTPT rules. This article discusses those changes to the LTPT rules as imposed by SECURE 2.0. Such changes generally are effective for most plan sponsors on January 1, 2025 so now is the time to take action in order to be prepared for the change."  MORE >>

"The final regulations' changes apply to RMDs for 2025 and later calendar years.... The 2024 proposed regulations would have the same applicability dates. The preamble to the final regulations explains that for years before the regulations apply, taxpayers must follow the earlier regulations, taking into account a reasonable, good-faith interpretation of SECURE 1.0's RMD changes. Compliance with the 2022 proposed regulations satisfies this requirement."  MORE >>

"Some provisions have already taken effect, while others are scheduled for implementation in 2025 and beyond. Plan sponsors should be aware of these upcoming provisions, as many will require them to decide whether to opt in or out. Here's a summary of the key changes that plan sponsors need to know."  MORE >>

"The final regulations apply to qualified 401(a) plans and IRAs ... The final regulations that affect eligible rollovers apply for distributions on or after January 1, 2025, and final regulations related to the penalty tax on RMD failures apply for taxable years beginning on or after January 1, 2025. For earlier years, individuals must apply the 2002 and 2004 regulations, taking into account a reasonable, good faith interpretation of the amendments made by the SECURE Act and SECURE 2.0."  MORE >>

"This bulletin summarizes the key RMD provisions of the final regulations for employer-sponsored retirement plans, including qualified defined benefit (DB) plans and defined contribution (DC) plans, 403(b) plans, and 457(b) plans.... These regulations finalize the proposed RMD regulations published on February 24, 2022 (as corrected on March 21, 2022, and May 20, 2022), and generally follow those earlier proposed regulations without substantial change."  MORE >>

"Most older items didn't change significantly, but the agency moved several projects from the active agenda to its long-term agenda and vice versa. The [DOL] and Pension Benefit Guaranty Corp. (PBGC) also updated their agendas, but neither agency made significant changes to their current lists of retirement projects. While the active agenda often specifies anticipated completion dates within the next year, those dates are generally aspirational and routinely change as an agency's priorities shift."

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"[T]he SECURE 2.0 rule adjustment does not alter a plan sponsor's obligation to comply with the SECURE Act LTPTE rules for 2024. Consequently, the SECURE Act 'three year' rule will apply for 2024. However, effective for 2025 and into the future, the SECURE 2.0 'two year' rule will apply."

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