December 1st, 2024 Participant Notices – Annual notices due for Safe Harbor elections (note that some plans are no longer required to distribute Safe Harbor notices), Qualified Default Investment Arrangement (QDIA), and Automatic Contribution Arrangements (EACA or QACA). December 31st, 2024 ADP/ACP Corrections – Deadline for a plan to make ADP/ACP corrective distributions and/or to...

Required Minimum Distributions (RMD) should be paid by December 31 each year to participants who have reached age 73. However, a participant may elect to delay their first distribution until April 1 of the following year. If the first distribution is delayed, two distributions will be paid in the same year. The plan document may allow participants who are currently employed to delay...

A catch-up contribution is available for plan participants starting in the year age 50 is reached. For these participants, the annual deferral limit can be exceeded by the catch-up amount. Keep the following in mind: The annual deferral limit is based on the participant’s tax year; this is a calendar year limit, even if the plan year is an off-calendar plan year end. In order for a plan to...

As the time approaches to complete your annual data collection, you may be asked if any deposits to the plan were not made in a timely manner. Money withheld from a participant’s paycheck as pre-tax deferrals, Roth deferrals or loan repayments must be contributed to the 401(k) or 403(b) plan within the time frame specified by the Department of Labor (DOL). Although the exact requirements can...

On November 1, 2024, the IRS announced the Cost of Living Adjustments (COLAs) affecting the dollar limitations for retirement plans for 2025. In October, the Social Security Administration announced a modest benefit increase of 2.5%. Retirement plan limits also increased over the 2024 limits. COLA increases are intended to allow participant contributions and benefits to keep up with the “cost of...

While the major U.S. stock market indices finished in positive territory in the 3rd quarter (Q3) of 2024, there was a marked performance divergence, driven by two selloffs (in early August and early September), periodic bouts of sector rotation, and a considerable broadening of the market. While mega cap technology stocks led the way for the first half of the year, the Nasdaq-100 Index1 lagged...