Posts by merlich

Effective January 1, 2025 employees age 60 to 63 will be allowed to make larger catch-up contributions to 401(k) and 403(b) retirement plans. The catch-up contribution limit is increased to $11,250 whereas, employees between the ages of 50 and 60 continue to be limited to $7,500.

Long-term part-time employees are generally employees who work between 500 and 1,000 hours per year for a minimum of three consecutive years. Beginning in 2024 under the SECURE Act 2.0 companies are required to to offer retirement plan entry who meet the above criteria. Prior to the SECURE Act 2.0 comp-anies were able to exclude…

On November 18, 2024 the Department of Labor’s (“DOL”) Employee Benefit Security Administration (“EBSA”) announced it will start collecting certain data for its Lost and Found plan database. The Secure 2.0 Act requires the DOL to build a database which will help reunite ,missing participants with their retirement plans. The submission of information to the…

Safe harbor notices for 401(k) plans must be sent to eligible employees within a reasonable period before the start of each plan year. The IRS considers a notice to be timely if it’s given at least 30 days but no more than 90 days before the beginning of the plan year. If a mid-year change is…

BREAKING NEWS TWO-YEAR GRACE PERIOD IN IMPLEMENTING CATCH-UP CONTRIBUTIONS AS ROTH   On AUGUST 25TH, 2023 The Internal Revenue Service announced a two- year transition period with respect to the requirement that catch-up contributions made by certain 401(k) plan participants be designated as ROTH contributions. The specifics of the transition period are: The change under…

How to Make the Most Of Your 401(k) Plan More and more people are relying on their 401(k) plans for their future financial well-being. Many employees are contributing part of their salaries in 401(k) plans and very often also directing their own investments. Employees directing their own investments must consider investment objectives, the risk/return characteristics…