Key Takeaways SECURE Act 1.0 required that long-term, part-time (LTPT) employees be allowed to defer into 401(k) plans beginning January 1, 2024 for calendar year plans. However, plan sponsors are not required to contribute for them. LTPT employees for SECURE 1.0 are those who have worked at least 500 hours
Plan sponsors have been concerned about their fiduciary responsibilities for the selection of insurance companies to provide guaranteed income in their defined contribution plans, such as 401(k) plans. The SECURE Act of 2019 created an easy-to-satisfy fiduciary safe harbor to protect plan sponsors and to facilitate insured retirement income in
Key Takeaways The SECURE Act 2.0 requires that catch-up contributions for higher compensated participants be treated as Roth deferrals. This provision is effective for tax years beginning after December 31, 2023 (that is, in 2024 for calendar year taxpayers). Unfortunately, due to a drafting error in the legislation, the provision
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
Lessons Learned from Litigation (#3)—The BB&T Case This is the tenth in a series of articles about Best Practices for Plan Sponsors. To be clear, “best practices” are not the same as legal requirements. Instead, they are about better ways to manage retirement plans. In many cases, though, “best practices”
Plan Success by the Numbers (Part 1) This is the seventh of the series about Best Practices for Plan Sponsors. Most companies have budgets for their business operations . . . and then regularly compare budget-to-actual. In other words, they compare their actual expenses to the budgeted amounts to see
Why Wait Until After You are Sued? This is the sixth of the series about Best Practices for Plan Sponsors. I am surprised that, after all of the fiduciary litigation against 401(k) plan sponsors, many plan sponsors and their committees have not taken the basic steps to minimize the risk of
Thanks for subscribing to Fred Reish’s industry updates.
New articles and insights will be delivered directly to your inbox.