Key Takeaways The SECURE Act 2.0 requires that “new” 401(k) and private sector 403(b) plans automatically enroll their eligible employees, but not until plan years beginning after December 31, 2024…just weeks from now. Unfortunately, there are unanswered questions about how the automatic enrollment requirement will be applied. This article discusses
This starts a new series of blog posts…Things I Worry About. I will number these, but they will be more episodic than sequential. Key Takeaways The SECURE Act 2.0 requires that “new” 401(k) and private sector 403(b) plans automatically enroll their eligible employees, but not until plan years beginning after
Key Takeaways Most employees who work for large and mid-sized employers have the opportunity to defer money from their paychecks into a savings-based retirement plan. That is not the case with many small employers, though, where large numbers of employees work for firms that do not offer plans. However, savings-based
Each calendar quarter, I post approximately 12 articles on my blog. This quarterly digest provides links to the most popular posts during the past three months so that you can catch up on what you missed or re-read them. The SECURE Act 2.0: The Most Impactful Provisions (#1 — Automatic
Key Takeaways “New” 401(k) and 403(b) plans must be automatically enrolled, with automatic deferral increases, no later than the plan year beginning after December 31, 2024 (e.g., 2025 for calendar year plans). Any plan “established” on or after December 29, 2022 is considered a new plan. Defaulting participants must be
Best Interest Standard and Recommendations of Rollovers and Withdrawals On June 15, SEC Chairman Clayton issued a statement partially entitled: “Need for Increased Care when Recommending 401(k)/IRA Rollovers and Withdrawals . . .”. As that title suggests, the Chairman’s statement covers areas where the SEC will focus on recommendations when
Waiver of Required Minimum Distributions Updated through July 28, 2020 By Fred Reish, Bruce Ashton and Betsy Olson This is the third in our series of articles on special CARES Act provisions designed to help your 401(k) participants. In our prior articles, we discussed the temporary loan enhancement rules and
Special Distributions to Qualified Participants Updated through July 28, 2020 By Fred Reish, Bruce Ashton and Betsy Olson Our first article discussed CARES Act provisions designed to help your 401(k) participants with temporary loan enhancements. Here we discuss a second provision of the Act that can help participants who are
The Enhanced Loan Provision for Qualified Participants Updated through July 28, 2020 By Fred Reish, Bruce Ashton and Betsy Olson With the spread of the coronavirus and the resulting closures and cutbacks, many 401(k) participants are working reduced hours, but are not considered to be terminated for purposes of ERISA.
By Fred Reish and Bruce Ashton The Coronavirus pandemic is disrupting everyone’s personal and financial lives. While our health, and that of our families and friends, is paramount, we realize that the sudden and large investment losses in the 401(k) plans that you sponsor – and act as fiduciaries for
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