Roth elective deferral contributions have been permitted in qualified retirement plans since 2006. Section 604 of SECURE 2.0 provided for an optional provision that allows employees to designate their employer contributions, whether it be matching nonelective, as Roth. This applies to 401(k) Plans and 403(b) Plan. This was effective December 29, 2022; however, several challenges delayed implementation of this provision.
The IRS released Notice 2024-80 on November 1, 2024 announcing the new contribution and benefit limits for 2025.
Section 109 of SECURE 2.0 provided for a higher catch-up contribution limit beginning in 2025 for participants in a 401(k) or 403(b) plan for a specific population of employees.
Learn what exemptions there are from the SECURE 2., Section 101 mandating automatic enrollment for new 401(k) and 403(b) Plans.
Learn about the Pension Protection Act which allows for automatic enrollment in a 401(k) Plan and the pros and cons involved.
One of the most common errors found in qualified retirement plans is the failure to use the correct definition of compensation. Learn about the three basic definitions of compensation, a key data point in retirement plan operations.
There are several reasons to replace a SIMPLE plan with a 401(k) Plan. Learn how it can provide greater deferral limits, a vesting schedule for discretionary employer contributions, and plan design flexibility.
The two most common individual retirement vehicles are Qualified retirement plans and Individual Retirement Accounts (IRAs). Learn more about how Required Minimum Distributions for qualified plans and IRAs have aligned.
The SECURE 2.0 Act of 2022 includes over 90 provisions that have implications for retirement plans. Here are some of the changes that will be more impactful to retirement plans and plan sponsors.
As Internet Explorer will discontinue browser security updates by August of 2021, this site is best viewed using Google Chrome, Safari or Microsoft Edge.
