News Archive

"The future of SIMPLE IRA plans lies not in reimagining the structure entirely, but in surrounding them with smarter tools, personalized support, and a deeper integration of financial wellness. The question isn't whether these plans are still relevant -- the answer is yes. The question is how to evolve them to meet the next generation of savers where they are."  MORE >>

48 pages. "What's New: [1] Compensation ... [and] catch-up contribution limits for 2024 and 2025 ... [2] Plans established after the end of tax year.... [3] Increased small employer pension plan startup cost credit.... [4] Employer contributions credit.... [5] Small employer military spouse participation credit.... [6] Designated Roth nonelective contributions and designated Roth matching contributions.... [7] Matching contributions on account of qualified student loan payments.... [8] Starter 401(k) deferral-only arrangement.... [9] Additional nonelective contributions under a SIMPLE IRA plan.... [10] Midyear replacement of SIMPLE IRA plan with safe harbor 401(k) plan.... [11] Roth IRAs under a SEP arrangement and Roth SIMPLE IRAs under a SIMPLE IRA plan.... [12] Pension-Linked Emergency Savings Accounts. "  MORE >>

49 pages; Mar. 13, 2025. "What's New: [1] Compensation ... [and] catch-up contribution limits for 2024 and 2025 ... [2] Required minimum distributions (RMDs).... [3] Plans established after end of tax year.... [4] Increased small employer pension plan startup cost credit.... [5] Employer contributions credit.... [6] Small employer military spouse participation credit.... [7] Designated Roth nonelective contributions and designated Roth matching contributions.... [8] Matching contributions on account of qualified student loan payments.... [9] Starter 401(k) deferral-only arrangement.... [10] Additional nonelective contributions under a SIMPLE IRA plan.... [11] Midyear replacement of SIMPLE IRA plan with safe harbor 401(k) plan.... [12] Roth IRAs under a SEP arrangement and Roth SIMPLE IRAs under a SIMPLE IRA plan.... [13] Pension-Linked Emergency Savings Accounts. "  MORE >>

"SECURE 2.0 allowed mid-year conversions from a SIMPLE IRA to a safe-harbor 401(k) starting in 2024 if a few rules [are] followed ... [M]any current SIMPLE IRA plan sponsors recognize that a conversion to a safe-harbor 401(k) may be beneficial to both the business and its employees."  MORE >>

Detailed chart of limits for qualified plans, as well as IRA/Roth-IRA and ESA phase-out ranges and HSA Limitations.  Includes Rollover Chart.  MORE >>

This chart compares the 4 common types of plan designs often utilized by small employers.  MORE >>

"While [Notice 2024-63] applies to plan years beginning after Dec. 31, 2024, employers offering QSLPs for the 2024 plan year can rely on a good-faith, reasonable interpretation of the statutory QSLP match provisions. IRS considers following the notice before its applicability date to be a good- faith, reasonable interpretation of the statute. IRS is accepting comments until Oct. 18."  MORE >>

"[S]ection 408(p)(11), allowing the mid-year change from a SIMPLE plan to a safe harbor 401(k) plan, is an exception to the general rule ... that says an employer is prohibited from maintaining both a SIMPLE IRA and another plan, contract, pension or trust ... It is the only exception. This means that you cannot also add in a Cash Balance or Defined Benefit plan in the year of the termination of the SIMPLE."

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"The new SECURE 2.0 mid-year termination rules for SIMPLE IRA plans provide greater flexibility to buyers and sellers seeking to terminate a SIMPLE IRA plan mid-year in connection with a corporate transaction, and those rules may prove useful for fully integrating continuing employees onto the buyer's benefits platform immediately or soon after the closing of the M&A transaction."

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44 pages; Jul. 5, 2024. "What's New: [1] Compensation ... Elective deferral ... Defined contribution ... Defined benefit ... SIMPLE plan salary reduction contribution ... [and] Catch-up contribution limits for 2023 and 2024 ... [2] Required minimum distributions (RMDs).... [3] Plans established after end of taxable year.... [4] Increased small employer pension plan startup cost credit.... [5] Employer contributions credit.... [6] Small employer military spouse participation credit.... [7] Designated Roth nonelective contributions and designated Roth matching contributions."

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"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."

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44 pages; Mar. 7, 2024. "What's New: [1] Compensation ... Elective deferral ... Defined contribution ... Defined benefit ... SIMPLE plan salary reduction contribution ... [and] Catch-up contribution limits for 2023 and 2024 ... [2] Required minimum distributions (RMDs).... [3] Plans established after end of taxable year.... [4] Increased small employer pension plan startup cost credit.... [5] Employer contributions credit.... [6] Small employer military spouse participation credit.... [7] Designated Roth nonelective contributions and designated Roth matching contributions."  MORE >>

"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."  MORE >>

"On the surface, the solo 401(k) may appear to be unquestionably the preferable option due to having a higher potential contribution amount, along with the low fees and vast suite of investment options that SEP-IRAs have always enjoyed.... However, several nuances make this a more complicated choice for clients beyond just asking them if they want to maximize tax-favored savings limits."

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44 pages; Jan. 31, 2024. "What's New: [1] Compensation limits for 2023 and 2024.... [2] Elective deferral limits for 2023 and 2024.... [3] Defined contribution limits for 2023 and 2024.... [4] Defined benefit limits for 2023 and 2024.... [5] SIMPLE plan salary reduction contribution limits for 2023 and 2024.... [6] Catch-up contribution limits for 2023 and 2024 ... [7] Required minimum distributions (RMDs)."

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"Starting in 2024, a SIMPLE IRA can be replaced with a safe harbor 401(k) plan mid-year. The replacement plan can be either a traditional safe harbor plan or a Qualified Automatic Contribution Arrangement (QACA) safe harbor 401(k) plan. The replacement ... plans must be effective as of the termination date of the SIMPLE IRA."  MORE >>

"If you have a SIMPLE IRA, ... [but] want to change to a 401(k) plan in 2024, you need to take action by November 2. That's the date that employers must provide notice to their employees that 2023 will be the last year for the SIMPLE IRA, and that it will be replaced by a 401(k) plan in 2024."  MORE >>

"[1] Treatment of student loan repayments as elective deferrals for purposes of matching contributions ... [2] Employers allowed to replace SIMPLE retirement accounts with safe harbor 401(k) plans during a plan year ... [3] Exemption for certain automatic portability transactions occurring 12 months after the SECURE 2.0 enactment date ... [4] Safe harbor for plan corrections of employee elective deferral failures."

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"[This post focuses] specifically on SECURE 2.0 changes to small employer plans, including SIMPLE IRA Plans and SEPs.... The chart [in this article] is intended to be used as a reference for describing many of the Small Plan changes relative to current law, the type of plans affected, whether the change is mandatory or optional, and the effective date of the change."  MORE >>

8-page chart summarizes SECURE 2.0 provisions and their effective dates.

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"Many of the general changes ... apply to individual retirement accounts (IRAs) as well as to other types of retirement plans. Other new options apply to SEP-IRAs and SIMPLE IRAs ... [including] the ability to match participant loan repayments under SIMPLE IRAs and the ability to establish a SEP for domestic employees. Additional changes that enhance the benefits of participation and permit increased contributions are specific to IRAs, SEP-IRAs and SIMPLE IRAs."  MORE >>

9 pages. This article summarizes the changes that impact: [1] Access to retirement plans; [2] Withdrawals and distributions; [3] Individual Retirement Accounts (IRAs); [4] Small employers, SIMPLE plans and SEPs; [5] Pooled Employer Plans (PEPs) and Multiple Employer Plans (MEPs); [6] Employee Stock Ownership Plans (ESOPs); and [7] 403(b) plans and governmental plans.

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"As the June 30, 2022 CalSavers deadline bears down on employers with five or more California employees, many small employers may be giving thought to adopting a simplified retirement plan, whether a SEP or SIMPLE IRA.... [E]ach of these types of plans imposes participation notification duties that employers often overlook, and noncompliance can put the tax-sanctioned status of the whole arrangement at risk."

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"This temporary suspension comes as no surprise as the [SECURE Act] made significant changes to IRAs, and questions regarding some of the SECURE Act's more complex changes still remain.... The IRS intends to issue updated model forms and LRMs as well as a new revenue procedure for requesting an IRS opinion letter on prototype IRAs."  MORE >>

"This announcement provides that, effective March 14, 2022, and until further notice, the [IRS] will not accept applications for opinion letters on prototype IRAs (traditional, Roth and SIMPLE IRAs), SEPs (including salary reduction SEPs (SARSEPs)), and SIMPLE IRA plans. This announcement also provides that, pending issuance of future guidance [1] adopters of prototype IRAs, SEPs, and SIMPLE IRA plans may rely on a previously received favorable opinion letter, and [2] taxpayers may use existing model forms to maintain current plans and accounts or establish new plans and accounts."

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