Compliance Stuff

Since 2019, Congress has enacted three major pieces of legislation impacting retirement plans, significantly changing the retirement landscape. The legislation contained a number of amendments to the Internal Revenue Code and the Employee Retirement Income Security Act, as amended, that impact employer-sponsored retirement plans (e.g., 401(k) plans, 403(b) plans, defined benefit plans, and even Puerto Rico plans). In a nutshell, the legislation we’re talking about includes: SECURE Act (1.0) .  Signed into law on December 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act was by far the most significant overhaul of the retirement plan landscape since the Pension Protection Act of 2006. Click  here  and  here  for more information. CARES Act.   The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020.  T he CARES Act included provisions that provided a much-needed lifeline fo...

 Employers now have some clarity around a new program that allows them to match retirement plan contributions to employees’ student loan payments. The IRS on Aug. 19 released long-awaited interim guidelines regarding the program, a provision under SECURE ACT 2.0 that allows employers with 401(k), 403(b), governmental 457(b), or Savings Incentive Match Plan for Employees (SIMPLE) IRA plans to match employees’ student loan payments like they would for traditional retirement contributions. The provision took effect this year, but employers have been waiting for more guidance around the new program. In Notice 2024-63, the IRS clarified eligibility rules and certification requirements in a Q&A format. The guidance applies for plan years beginning after Dec. 31, 2024, the agency said. The notice addresses a variety of plan-administration issues, the IRS said in an accompanying news release , including: General student loan matching contribution eligibility rules (including dollar an...