Compliance Stuff

Distributions 401(k) plans are subject to strict   IRS distribution rules   to ensure that retirement savings are used as intended. Whether you're an employer managing a retirement plan or an employee planning for your financial future, understanding when and how distributions are permitted is essential. This FAQ addresses the most important questions about 401(k) distributions, incorporating recent updates from the SECURE Acts and hardship distribution regulations. What is a 401(k) Distribution? A 401(k) distribution is a withdrawal of funds from a participant’s retirement account. Distributions can include pre-tax and after-tax contributions, employer contributions, Roth contributions, and investment earnings. IRS rules determine when these funds can be accessed, and most distributions are subject to income tax—plus a 10% penalty if taken early, unless an exception applies. Most 401(k) distributions can be “rolled over” by depositing the proceeds into  another retiremen...

On April 28, 2025, the Cleveland, Ohio City Council adopted Ordinance 104-2025, which requires employers with at least 15 employees in Cleveland to include salary ranges in job postings and prohibits inquiring about an applicant’s salary history. The ordinance, which will take effect on October 27, 2025, builds on a nationwide trend of state and municipal laws aimed at pay transparency and salary history inquiries. The ordinance marks a seismic shift for Cleveland employers, which will be prohibited from asking applicants about their current or prior salary, relying solely on an applicant’s salary history to offer employment, or retaliating against an applicant who refuses to disclose salary history. Salary, defined broadly in the ordinance, includes wages, commissions, hourly earnings, other monetary earnings, and benefits. But it excludes objective measures of an applicant’s productivity, such as revenue, sales, and other production measures. The ordinance permits discussing salary e...