On May 4, the IRS issued Notice 2023-36 inviting the public to submit recommendations for its 2023-2024 Priority Guidance Plan. While the IRS has its hands full due to the over 90 changes to retirement plan law contained in the SECURE 2.0 legislation enacted last December, I believe one particular provision needs guidance as soon
SECURE 2.0 Provisions Allowing Greater Access to Retirement Money
Among the many changes in the SECURE 2.0 legislation are a number of provisions allowing participants to access their retirement funds without incurring a penalty excise tax. These provisions are discussed below.
Withdrawals for Terminal Illness or Domestic Abuse. Effective on the date of enactment (December 29, 2022), SECURE 2.0 authorizes a plan to permit
SECURE 2.0 Provisions Encouraging Employee Participation
Among the many provisions of the SECURE 2.0 legislation are a number of provisions designed to encourage employees to participate in and contribute to their employer provided retirement plan. Still other provisions provide more access to money in such plans under certain circumstances. This article will address provisions that encourage participation. A subsequent article will
SECURE 2.0 Provisions Encouraging Employers to Adopt A Plan
Among the many changes to retirement plans made by the SECURE 2.0 legislation are changes meant to encourage more employers to adopt retirement plans for their employees. Additionally there are provisions simplifying many rules of operating plans and provisions encouraging employees to participate and save for retirement. This article will discuss a couple of provisions
SECURE 2.0 Requires Auto-Enrollment, Auto-Escalation For Most New Plans
A provision of the SECURE 2.0 legislation will affect an employer’s decision as to whether to adopt a 401(k) plan or 403(b) plan. The provision requires most 401(k) plans and 403(b) plans (Plans) adopted after the date of enactment of SECURE 2.0 (December 29, 2022) to automatically enroll eligible employees with an automatic contribution that
SECURE 2.0 Changes Specific to Plans of Tax-Exempt Organizations
Of the over 90 provisions contained in the SECURE 2.0 legislation is a handful that only apply to retirement plans of nonprofit, tax exempt organizations (EOs). One is specific to EOs sponsoring 457(b) plans and others involve 403(b) plans. These provisions are discussed below.
457 RMD Amendment Deadline Extended. Late last year, I wrote
SECURE 2.0 Is Too Big For One Post
By now you probably know that the $1.7 billion Budget Reconciliation Act of 2023 (Act) that kept the Federal government funded was enacted on December 29, 2022. You are probably also aware that the legislation known as SECURE 2.0 was part of the legislation. However, you might not know that there are close to a
Mental Health Matters Act Would Increase ERISA Litigation By Changing Administrator Discretion and Arbitration Provisions
On September 29, the House of Representatives passed the Mental Health Matters Act (Act) which included the provisions of another bill previously introduced, the Employee and Retiree Access to Justice Act (ERAJA). While the Act principally deals with health plans and expanding access to mental health and substance abuse services, ERAJA amends ERISA in two
Inflation Reduction Act Means Employers Should Review Benefits Plans Now For Compliance
There has been much press coverage on how the Inflation Reduction Act provides billions in funding for IRS enforcement. Some stories say that the IRS will be hiring 87,000 new agents to audit taxpayers over the next 10 years. This is disputed but there is no doubt that there is $80 billion in funding to
Notice 2022-33 Does Not Extend Deadline For Adopting Amendments to Plans for All CARES Act Provisions: Loan and In-Service Withdrawal Provisions Excluded
On August 3, 2022, the IRS issued Notice 2022-33 which extended the deadline for Employers to adopt certain amendments to their qualified plans, 403(b) plans, and governmental plans, resulting from recent legislation including the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), the Coronavirus Aid, Relief, and Economic Security Act (CARES