Key Takeaways The SECURE Act 1.0 gave us Pooled Employer Plans, PEPs, for qualified plans. SECURE Act 2.0—effective for plan years beginning after December 31, 2022—extends PEPs and MEPs to 403(b) plans. While the legal effective date is already here, I haven’t yet seen any 403(b) MEPs or PEPs in
Key Takeaways In the past, and for the next few years, the Internal Revenue Code provides for a nonrefundable tax credit for low-paid individuals who make plan, IRA or ABLE contributions. Unfortunately, that credit was seldom claimed on tax returns, possibly because of a lack of awareness among low-paid taxpayers.
Key Takeaways Prior to the SECURE Act 2.0, if a 529 plan beneficiary did not use all of the funds for qualified education expenses (for example, the beneficiary graduated without using all of the funds in the 529), the options for withdrawal were not particularly attractive. However, under the new
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 Prior to the SECURE Act 2.0 all older participants, regardless of compensation level, could deduct their catch-up contributions. However, under the new law—beginning in 2024—participants who earn more than $145,000 will only be able to make Roth catch-up contributions. As a result, those catch-up contributions will be taxable
Key Takeaways Prior to the SECURE Act 2.0 the only financial incentive for a participant to make a deferral was a matching contribution. However, the new law permits “de minimus” non-cash incentives for beginning participation or increasing deferrals, so long as the incentives are not paid for by the plan.
Key Takeaways The SECURE Act 2.0 provides significant tax credits for startup plan costs—for both administration and contribution costs. The credits are fully available for employers with 50 or fewer employees and partially available up to 100 employees. This provision is effective now, that is, it is effective for tax
Key Takeaways The SECURE Act 2.0 provides significant tax credits for startup plan costs—for both administration and contribution costs. The credits are fully available for employers with 50 or fewer employees and partially available up to 100 employees. This provision is effective now, that is, it is effective for tax
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