Section 603 of the SECURE Act 2.0 introduced a new provision, modifying who is eligible to make pre-tax catch-up contributions. The sole purpose of this provision is to generate revenue to cover the anticipated costs of tax credits that encourage small employers to adopt 401(k) plans. The final regulations were issued on September 16, 2025. […]
New Rule: Roth Catch-Up for HPI Read More »
Long Term Part-Time Employees: What to Know About New Eligibility Rules You may have noticed a theme emerging in recent blog posts here at ERISA.com – SECURE 2.0 and its emphasis on improving employee retirement savings. In this installment, we will continue the theme by discussing Long Term Part-Time Employees (or LTPTs, as we’ll call
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SECURE 2.0 and Automatic Enrollment: What You Need to Know SECURE 2.0 Section 101 will bring a big change to new workplace retirement plans: mandatory automatic enrollment and automatic increases in savings rates starting in 2025. This change helps employees save for retirement more easily by starting them right away. What Is Automatic Enrollment? In
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There are two major types of Related Employers: Affiliated Service Groups and Control Groups. Part I of this series discussed the general purpose of Related Employer rules, how they affect plan testing, and explained Affiliated Service Groups. Why are the Control Group rules important? As noted in Part I, ERISA considers all entities that are
Identifying Related Employers: Part II Control Groups Read More »
Preventing owners and highly compensated employees from abusing retirement plans’ tax benefits is one of the primary policy goals of the Employee Retirement Income Security Act. One way ERISA accomplishes this is grouping certain commonly owned business entities together as a single employer for plan testing. These rules are referred to as the Affiliated Service
Identifying Related Employers: Part I – Affiliated Service Groups Read More »
Each year, the IRS adjusts the contribution limits for qualified retirement plans to account for cost of living increases. On October 26, 2020, the IRS published contribution limits for 2021 in Notice 2020-79. Cost of Living Increases While several limits remained unchanged for the upcoming year, there are a few notable limit increases. The UNCHANGED
New 2021 Contribution Limits Read More »
In May, the DOL passed a new regulation that allows plan administrators to deliver retirement plan documents to participants online. This is a significant departure from previous rules surrounding plan disclosures. So what does this mean for your 401(k) plan? Participants first receive an Initial Notice of Internet Availability First, plan participants will receive an
What Does E-Delivery Mean for My 401(k) Plan? Read More »
On May 21, 2020, the Department of Labor (DOL) announced a final rule for the electronic delivery of retirement plan documents. The new electronic delivery rules allow plan administrators to provide retirement plan disclosures to participants electronically, which reduces plan costs and makes plan disclosures more readily accessible to plan participants. In light of the
Electronic Delivery Updates for Retirement Plans Read More »
Congress passed the Coronavirus, Aid, Relief, and Economic Security Act (CARES Act) Friday March 27, 2020. This 2 trillion dollar bill provides economic relief to Americans in the midst of the global COVID-19 pandemic. The provisions of the bill relating to retirement plans are designed to provide immediate financial relief to participants who are experiencing
CARES Act Changes for COVID-19 Relief Read More »
How does the SECURE Act affect safe harbor retirement plans? Among the many recent changes to retirement plans, three provisions of the SECURE Act impact safe harbor plans. The provisions center around notice requirements and safe harbor 401(k) plan design to decrease the administrative burden, provide additional employee protection, and encourage the adoption of new
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