Compliance Stuff

The US Department of the Treasury and the Internal Revenue Service have finalized regulations under the SECURE 2.0 Act that change how certain retirement plan participants may make catch-up contributions. Beginning in 2026, participants whose income meets certain thresholds and who are eligible to make catch-up contributions may, in many cases, only be permitted to do so on a Roth (after-tax) basis.  While these rules apply to nearly all defined contribution retirement plans, they raise unique administrative and compliance challenges for multiemployer defined contribution plans, which are those defined contribution plans to which more than one employer is obligated to contribute and which are maintained pursuant to one or more collective bargaining agreements (CBAs) .  Although the rules include temporary relief for collectively bargained plans, multiemployer plans should begin planning now.  What the Final Regulations Require The Roth catch-up requirement applies only if...

Recently, the Department of the Treasury and the IRS issued the long-awaited final regulations regarding the provisions of SECURE 2.0 relating to catch-up contributions made by participants in qualified defined contribution plans (including 401(k), 403(b), and governmental 457(b) plans) (the “ Final Regulation s”). In general, the Final Regulations followed the proposed regulations that were published in January. However, the IRS did make some key changes in the Final Regulations in response to comments submitted after the proposed regulations were published. Notably, despite pressure from plan sponsors and service providers, the IRS did not extend the administrative transition period with respect to required Roth catch-up contributions for certain higher paid catch-up eligible employees. Accordingly, the required Roth catch-up rules become mandatory effective January 1, 2026, for plans with calendar year plan years . However, the Final Regulations do provide some relief for reasonable...

Plan Design Is your small business overwhelmed by annual 401(k) nondiscrimination testing ? A  safe harbor 401(k) plan  can automatically satisfy the  ADP/ACP  and  top-heavy  nondiscrimination tests when certain employer contribution and participant notice requirements are met. That means no corrective refunds to Highly Compensated Employees (HCEs) , no surprise top heavy minimum contributions, and more predictable budgeting—all while giving you an edge in recruiting talent. We get a lot of questions from small business owners about safe harbor 401(k) plans. Here are answers to the most important questions we receive. They reflect changes made by the  SECURE Act of 2019 (SECURE 1.0 ) and  SECURE Act of 2022 (SECURE 2.0). What Makes a 401(k) Plan “Safe Harbor”? To achieve safe harbor status, a 401(k) plan must meet the following requirements: Mandatory Employer Contributions:   Employer must provide employees with either a matching or nonele...

If you're a small business owner in a  state with a retirement plan mandate , choosing between a state-run program and a private 401(k) is more than checking a legal box—it’s a strategic decision that can influence your company’s bottom line, your employees’ long-term financial security, and your ability to attract and retain top talent. With more than half of private-sector workers now participating in 401(k) plans—and with small employers increasingly looking for ways to differentiate themselves—offering the right retirement plan can give your business a meaningful competitive edge. State-mandated retirement programs are designed to expand access to retirement savings with minimal employer burden. They’re simple and cost-free for employers, but also limited—often capping contributions, restricting investment choices, and lacking flexible features. In contrast, a private 401(k) plan offers greater versatility: higher contribution limits, broader investment options, customizable ...