"Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2023 through the third quarter of 2024, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 2.5 percent COLA for 2025.... The Maximum Taxable Earnings [will increase to] $176,100."  MORE >>

20 pages; Oct. 9, 2024. "What's New: [1] New retirement plan distributions and their repayments.... [2] Line 15c Worksheet.... [3] New Line 25c.... [4] References to 2024 Form 8915-F.... [5] Coronavirus-related distributions.... [6] Modified adjusted gross income (AGI) limit for Roth IRA contributions increased.... [7] Due date for contributions."  MORE >>

"Notice 2024-73 explains how 20-hour employees and student employees are treated with respect to the LTPT employee rules: A 20-hour employee must be included as a LTPT employee if they meet the LTPT employee definition (500 hours in each of two consecutive years).... The student rule, on the other hand, is a statutory exception, and thus is not overruled by the LTPT employee inclusion rule."  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 authors] analyzed data from Form 5500s to identify trends in and implications of vesting schedule use by 408 single-employer 401(k) plans over the five-year period of 2018-2022.... 1.8 million plan participants forfeited compensation because they terminated employment (voluntarily or involuntarily) without being fully vested in their employer plan contributions.... [F]orfeitures used in 2022 amounted to ... $1.5 billion, most of which was used to reduce an employer's contribution obligation. [These] findings highlight the magnitude of the implications of 401(k) vesting schedule use and identify key companies whose plans have the most affected participants and the highest amounts of forfeitures at their disposal."  MORE >>

"Ongoing evaluations of your current 401(k) operations -- around all touch points of your systems -- with assessments that review your existing processes within your organization can uncover what's working well and what can be improved."  MORE >>

"Using annuities may not help much for clients with income that will stay very high throughout their retirement years, but it could help some who are likely to fall into a lower tax bracket later ... Using annuities’ tax-deferral power might also serve as a cushion for some clients who are about to bump up against a tax bracket ceiling[.]"  MORE >>

"[The IRS] approved an employee benefits program design (outside of a cafeteria plan) that would offer employees flexibility in allocating an employer contribution among certain employer-sponsored benefit plans.... Employer Considerations: [1] When to implement.... [2] Educational assistance program limit.... [3] Administrative complexity.... [4] Nondiscrimination testing.... [5] Program costs."  MORE >>

"In the October 7, 2024 memo, the [NLRB] general counsel ... [stated] her intent to prosecute employers who require their employees to sign non-compete and 'stay-or-pay' provisions, including those that take the form of training repayment agreement provisions, educational repayment contracts, quit fees, damages clauses, sign-on bonuses or other types of cash payments tied to mandatory stay periods and other contracts under which employees must pay their employer in the event that they separate from employment."  MORE >>

"The memorandum is not the official legal position of the NLRB; however, if it is adopted and broadly applied by the NLRB, it could have significant impacts on the business operations of many employers -- with one important limitation. The NLRA does not apply to managerial or supervisory employees. Given that noncompetes and stay-or-pay provisions tend to be directed at these higher-level employees, the memorandum could be of limited application."  MORE >>

"Former Merrill financial advisor Kelly Milligan contends ... that the eight-year vesting schedule in Merrill's WealthChoice Contingent Award Plan, and its 'cancellation rule' requiring advisors to forfeit unvested money, violate [ERISA].... Merrill contends that ERISA doesn't apply to the the WealthChoice plan." [Milligan v. Merrill Lynch, Pierce, Fenner & Smith, Inc., No. 24-0440 (W.D. N.C. complaint filed Apr. 30, 2024; defendant's motion for summary judgment filed Sep. 30, 2024)]  MORE >>