Subscribe (Free) to
Daily or Weekly Newsletters
Post a Job

Featured Jobs

Regional Vice President of Sales

The Retirement Plan Company
(Remote / AL / FL / GA / MS)

The Retirement Plan Company logo

Defined Benefit Combo Cash Balance Compliance Consultant

Loren D. Stark Company (LDSCO)
(Remote)

Loren D.  Stark Company (LDSCO) logo

Loan & Distribution Specialist

AimPoint Pension
(Remote)

AimPoint Pension logo

Director of 3(16) Operations

Compass
(Remote / NH / Hybrid)

Compass logo

Retirement Plan Administrator

Bates & Company, Inc.
(Remote / Winter Park FL)

Bates & Company, Inc. logo

Business Development Director

AimPoint Pension
(Remote / Pompano Beach FL / AL / GA)

AimPoint Pension logo

View More Employee Benefits Jobs

Free Newsletters

“BenefitsLink continues to be the most valuable resource we have at the firm.”

-- An attorney subscriber

Mobile app icon
LinkedIn icon     Twitter icon     Facebook icon

Search 96,988 News Items Curated by BenefitsLink®

News

All News > SECURE 2.0

Get this news and more in our free daily email newsletters.
DOL Releases Proposed Regs for Automatic Portability Transactions
Ascensus Link to more items from this source
[Guidance Overview]
Mar. 25, 2024

"The decision to contract with an auto portability provider is optional; therefore the auto portability process will only be available to those plan sponsors who, along with their service providers (i.e., recordkeepers) choose to participate. ... There are several conditions that must be met for an automatic portability transaction to be covered by the statutory exemption in IRC Sec. 4975(d)(25)."

Tags: Retirement Plan Administration  •  SECURE 2.0

IRS Provides Guidance on SECURE 2.0's Terminal Illness Distributions
Mercer Link to more items from this source
[Guidance Overview]
Mar. 22, 2024

"[Notice 2024-2] confirms that ['terminally ill individual distributions' (TIIDs)] are available to participants in ... defined benefit and defined contribution plans (including 401(k) plans), 403(a) annuity plans, 403(b) plans, and both traditional and Roth IRAs. The notice also indicates that all participants and beneficiaries in these plans may be eligible to receive TIIDs, not just current employees."

Tags: 401(k) Plans  •  403(b) Plans and Annuities  •  Misc. Distribution Issues  •  Retirement Plan Administration  •  Retirement Plan Design  •  SECURE 2.0

SECURE 2.0 Allows for Mid-Year Termination of SIMPLE IRAs
Ascensus Link to more items from this source
[Guidance Overview]
Mar. 20, 2024

"For plan years beginning after December 31, 2023, employers may terminate a SIMPLE IRA plan at any time during a calendar year and replace it with a safe harbor section 401(k) plan. Notice 2024-02 clarifies that the establishment of a safe harbor 401(k) plan is considered an exception to the SIMPLE IRA exclusive plan rule. The effective date of the safe harbor plan must be the day after the termination date of the SIMPLE IRA plan."

Tags: Retirement Plan Design  •  SECURE 2.0  •  SIMPLE 401(k), SIMPLE IRA Plans

How Starter 401(k) Plans Compare to Safe Harbor and Traditional Plans
Employee Fiduciary Link to more items from this source
[Guidance Overview]
Mar. 13, 2024

"[SECURE 2.0] created a new type of automatic enrollment 401(k) plan called the 'starter 401(k) deferral-only arrangement'  ... meant to be an entry-level option for small businesses who do not already offer a retirement plan. A starter plan is not subject to annual testing like a traditional 401(k) plan or mandatory employer contributions like a safe harbor 401(k) plan. The trade-off is lower contribution limits for plan participants. Small businesses can adopt a starter 401(k) plan starting January 1, 2024."

Tags: 401(k) Plans  •  Retirement Plan Design  •  SECURE 2.0

DOL and IRS Issue Guidance on DC Plan Emergency Savings Accounts
Mercer Link to more items from this source
[Guidance Overview]
Mar. 12, 2024

"DOL's guidance takes the form of 20 wide-ranging FAQs posted on the agency's website covering multiple aspects of PLESA administration. IRS's guidance in Notice 2024-22 focuses on reasonable measures sponsors can take to limit employees' manipulation of the employer match on PLESA contributions. IRS is accepting written comments on its notice through April 5, and both agencies have indicated that more PLESA guidance is coming."

Tags: 401(k) Plans  •  Retirement Plan Design  •  SECURE 2.0

A Look at the Proposed Long-Term Part-Time Employee Regs
Hodgson Russ LLP Link to more items from this source
[Guidance Overview]
Mar. 8, 2024

"Plans that are already subject to the LTPTE rules should already be working with their service providers to be certain administrative processes, if necessary, are in place to ensure compliance ... Plan amendments may be needed to reflect plan operations with respect to the LTPTE rules. Technically, plan amendments are not required until December 31, 2026, but the adoption of plan amendments prior to the final amendment deadline might be prudent.... [P]lans should be maintaining records as to how they are complying with the LTPTE rules."

Tags: 401(k) Plans  •  Retirement Plan Administration  •  SECURE 2.0

Notice 2024-02 Provides Guidance on Distributions to the Terminally Ill
Trucker Huss Link to more items from this source
[Guidance Overview]
Mar. 6, 2024

"To be eligible for a Terminally Ill Distribution, an individual must be certified by a physician as having an illness or physical condition that can reasonably be expected to result in death in 84 months or less after the date of certification.... [T]he Terminally Ill Distribution provision of the Act is an exception to the 10 percent additional tax, not the distribution restriction requirements of 401(k) or 403(b) plans. For such a plan to allow Terminally Ill Distributions, it must first permit in-service distributions or hardship distributions."

Tags: Misc. Distribution Issues  •  Retirement Plan Administration  •  Retirement Plan Design  •  SECURE 2.0

SECURE 2.0 Defined Contribution Retirement Plan Provisions Snapshot (PDF)
Multnomah Group Link to more items from this source
[Guidance Overview]
Mar. 6, 2024

8-page chart lists and describes SECURE 2.0 provisions and effective dates.

Tags: 401(k) Plans  •  403(b) Plans and Annuities  •  Retirement Plan Administration  •  Retirement Plan Design  •  SECURE 2.0

Do You Know Where Your 'Missing' Retirement Plan Participants Are?
Bricker Graydon Link to more items from this source
Mar. 6, 2024

"The maximum participant plan balance that a plan sponsor can force out of a plan was increased by SECURE 2.0 to $7,000.... SECURE 2.0 also approved automatic portability generally so that a 401(k) plan sponsor could also automatically move a participant's small account to a new employer's plan when a participant changes jobs."

Tags: Lost/Missing Participants  •  Retirement Plan Administration  •  SECURE 2.0

21.9 Million Americans Could Qualify for SECURE 2.0 Saver's Match
Employee Benefit Research Institute [EBRI] Link to more items from this source
Mar. 5, 2024

"From tabulations of tax filers with W-2 income, 69.0 million had incomes eligible for the Saver's Match.... 18.9 million workers contributed to an employment-based retirement plan and had incomes that would qualify for the Saver's Match."

Tags: Retirement Plan Information for Employees  •  SECURE 2.0

SECURE 2.0 Adds Flexibility for Switch from SIMPLE IRA to Safe Harbor 401(k)
Conrad Siegel Actuaries Link to more items from this source
[Guidance Overview]
Mar. 1, 2024

"Before SECURE 2.0, an employer had to wait until the end of the year to switch from a SIMPLE IRA to a 401(k) plan.... Now, under SECURE 2.0, an employer can replace its SIMPLE IRA with a safe harbor 401(k) at any point during the year. For a mid-year transition, the employer contribution obligation for the year is prorated. Any employee SIMPLE IRA deferrals count toward the 401(k) limit."

Tags: 401(k) Plans  •  Retirement Plan Design  •  SECURE 2.0  •  SIMPLE 401(k), SIMPLE IRA Plans

Plan Sponsor Considerations for Roth Employer Contributions
Watkins Ross Link to more items from this source
Mar. 1, 2024

"Even if you currently allow Roth deferrals, you are not required to offer Roth Employer contributions. You can offer this option even if your plan does not offer Employee Roth deferrals. An employee must irrevocably elect Roth treatment for matching and nonelective contributions before they are allocated to their plan account."

Tags: 401(k) Plans  •  403(b) Plans and Annuities  •  457 Plans  •  Retirement Plan Design  •  SECURE 2.0

IRS Provides Guidance on Hodgepodge of Secure 2.0 Provisions
Morgan Lewis Link to more items from this source
[Guidance Overview]
Feb. 29, 2024

"[Notice 2024-02] was issued just days before some of the provisions were first effective and includes guidance on a wide range of matters.... This [article] focuses on the changes most relevant to large plan sponsors with more than 100 participants -- i.e., automatic enrollment changes, de minimis financial incentives, an exception to the 10% tax for terminally ill participant withdrawals, an automatic enrollment error correction, the Rothification of employer contributions, and amendment deadlines extensions."

Tags: 401(k) Plans  •  Retirement Plan Administration  •  Retirement Plan Design  •  SECURE 2.0

Pension-Linked Emergency Savings Accounts: An Overview for Plan Sponsors
Reinhart Boerner Van Deuren s.c. Link to more items from this source
[Guidance Overview]
Feb. 27, 2024

"When added to a defined contribution plan, PLESAs can allow non‑highly compensated employees to contribute to short‑term 'side car' accounts for use in financial emergencies. Although PLESAs are intended to encourage greater plan participation and retirement savings among lower‑income workers, plan sponsors have thus far been reluctant to add the feature over questions on implementation and administration."

Tags: 401(k) Plans  •  Retirement Plan Design  •  SECURE 2.0

PLESA, Can I Have Some More?
Jackson Lewis P.C. Link to more items from this source
[Guidance Overview]
Feb. 27, 2024

"[T]he DOL recently issued guidance regarding PLESAs in the form of FAQs. There are no earth-shattering revelations ... but there are a few nuggets to glean ... Although this guidance is welcome, it is unclear whether employers will embrace PLESAs given the administrative burden associated with them and the difficulty of explaining them to participants."

Tags: 401(k) Plans  •  Retirement Plan Design  •  SECURE 2.0

IRS Provides Proposed Regulations for Long-Term Part-Time Employees
TRI-AD Link to more items from this source
[Guidance Overview]
Feb. 26, 2024

"Even though written plan amendments do not have to be made until the end of the 2026 plan year, plan sponsors are required to operate their plans in compliance with these LTPT employee requirements starting with the 2024 plan year. Section 403(b) plans must implement these provisions for plan years beginning in 2025."

Tags: 401(k) Plans  •  Retirement Plan Administration  •  Retirement Plan Design  •  SECURE 2.0  •  SECURE Act

Proposed Regs Issued for Long-Term Part-Time Employee Participation in 401(k) Plans
Boutwell Fay LLP Link to more items from this source
[Guidance Overview]
Feb. 26, 2024

[P]eriods beginning before January 1, 2021, are not taken into account; the preamble to the regulations explains that this a mandatory requirement, and plan sponsors may not voluntarily credit additional service to employees for purposes of an LTPT employee determination.... ... If a plan sponsor mistakenly did not provide LTPT employees eligible as of Jan. 1, 2024, the opportunity to defer on that date, the plan sponsor may need to take corrective action under [EPCRS]."

Tags: 401(k) Plans  •  Retirement Plan Administration  •  SECURE 2.0  •  SECURE Act

Correcting 'Qualification Failures' Under the IRS Self-Correction Program
Holland & Hart, via JDSupra Link to more items from this source
[Guidance Overview]
Feb. 23, 2024

"The SCP rules were expanded under the SECURE 2.0 Act, and the IRS issued guidance (Notice 2023-43) ... which allows plan sponsors to self-correct defined eligible inadvertent failures, and provides interpretative guidance on this type of correction prior to any official amendment to the EPCRS program. Qualification failures eligible for self-correction are limited to operational failures and certain plan document failures."

Tags: Retirement Plan Administration  •  SECURE 2.0

Retirement Plan Tax Credits Help with Costs of Starting a 401(k) Plan
Guideline Link to more items from this source
Feb. 23, 2024

"[T]hanks to the SECURE Act and SECURE 2.0, eligible businesses may be eligible to receive up to $16,500 in tax credits over a plan's first three years. These credits include:[1] Startup tax credit; [2] Automatic enrollment credit; [3] Employer contribution cost credit; [4] Military spouse credit.... [N]early 50% of benefits decision-makers are unaware of the retirement tax credits their companies may qualify for."

Tags: 401(k) Plans  •  Retirement Plan Design  •  SECURE 2.0

ARA Comment Letter to IRS on Notice 2024-2: Miscellaneous Changes Under the SECURE 2.0 Act of 2022 (PDF)
American Retirement Association [ARA] Link to more items from this source
[Opinion]
Feb. 22, 2024

"[Regarding the] Section 414A requirement, [Notice 2024-02] left significant questions unanswered -- particularly information necessary for an employer to accurately determine whether its plan is subject to the EACA mandate and guidance on how to comply with the mandate when an employer maintains a plan before the arrangement becomes subject to the mandate.... [T]he Notice provides that a de minimis financial incentive may only be offered to an employee who does not have a deferral election in effect. This interpretation is far too restrictive, as the statutory language itself is not so narrow."

Tags: 401(k) Plans  •  Retirement Plan Administration  •  Retirement Plan Design  •  SECURE 2.0

A Crystal-Ball View of Retirement Plans in 2024: A Plan Sponsor Priority Checklist
BenefitsPro; free registration required Link to more items from this source
Feb. 22, 2024

"Expect more emphasis on participant services ... [L]ifetime income within defined-contribution plans on the rise  ... 403(b) plans will continue influencing 401(k) plans ... [C]hanges in plan design."

Tags: 401(k) Plans  •  Retirement Plan Design  •  SECURE 2.0

IRS Provides Guidance on Self-Correcting Auto-Enrollment and Auto-Escalation Failures
Trucker Huss Link to more items from this source
[Guidance Overview]
Feb. 21, 2024

"[Notice 2024-02] generally provides that to self-correct under the Act, employers would follow the rules under the expired safe harbor of EPCRS. However, [the Notice] provides guidance on: [1] the effective date of the Act's safe harbor correction; [2] how to self-correct for failures relating to terminated employees; and [3] when corrective matching contributions must be made."

Tags: 401(k) Plans  •  Retirement Plan Administration  •  SECURE 2.0

SPARK Institute Comment Letter to IRS on SECURE 2.0 Grab-Bag Guidance (Notice 2024-2) (PDF)
The SPARK Institute Link to more items from this source
[Opinion]
Feb. 21, 2024

14 pages. "[T]he SPARK Institute is providing comments regarding the following sections of SECURE 2.0: [1] Section 101 (expanding automatic enrollment in retirement plans); [2] Section 113 (small immediate financial incentives for contributing to a plan); [3] Section 326 (exception to the additional tax on early distributions from qualified plans for individuals with a terminal illness); [4] Section 501 (provisions relating to plan amendments); and [5] Section 604 (optional treatment of employer contributions or nonelective contributions as Roth contributions)."

Tags: 401(k) Plans  •  Retirement Plan Administration  •  Retirement Plan Design  •  SECURE 2.0

American Benefits Council Comment Letter to IRS on Notice 2024-02
American Benefits Council Link to more items from this source
[Opinion]
Feb. 21, 2024

"Under Q&A A-3 ... it appears that if a single-employer plan that includes a pre-enactment qualified CODA is merged into a pooled employer plan (PEP) or other multiple employer plan (MEP) that was established on or after December 29, 2022, the single-employer plan loses its status as having a pre-enactment qualified CODA. Thus, that employer's part of the PEP or MEP will become subject to the automatic enrollment requirements of Code Section 414A.... [The Council believes] that this result [1] is technically incorrect, and [2] will have very adverse policy effects."

Tags: MEP/PEP  •  Retirement Plan Design  •  SECURE 2.0

Comments Challenge IRS Interpretation of Automatic Features, Roth Matching, Other Provisions
PLANSPONSOR; free registration may be required Link to more items from this source
Feb. 21, 2024

"[Notice 2024-02] provisions on de minimis incentives and terminally ill distributions also received some pushback from the industry.... The 'grab bag' notice, issued in FAQ format, sought to clarify various provisions including: automatic features, de minimis incentives, tax credits, Roth matching contributions, and distributions to the terminally ill."

Tags: 401(k) Plans  •  Retirement Plan Administration  •  Retirement Plan Design  •  SECURE 2.0

© 2024 BenefitsLink.com, Inc.