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Monthly Market Update (September 2024): 3 Things You Need to Know

Global stocks and bond indices finished the month close to record levels as the Federal Reserve lowered interest rates by a half percentage point – its first reduction since 2020. Here are 3 things you need to know: The S&P 500 has now posted its strongest year-to-date performance of the 21st century so far (+20.8%), after rising 5.36% for the third quarter. Chinese equity markets rocketed...

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Required Distributions: Changes You Need to Know

The Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) changed the rules for taking distributions from retirement accounts inherited after 2019. The so-called 10-year rule generally requires inherited accounts to be emptied within 10 years of the original owner's death, with some exceptions. Where an exception applies, the entire account must generally be emptied...

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Medicare Open Enrollment Begins October 15th

If you are covered by Medicare, it’s not too early to start planning for the Medicare Open Enrollment Period (OEP). Medicare plans can change every year, and you may want to switch to a health or prescription drug plan that better suits your needs or your budget. Mark these dates on your calendar: Late September: Watch for your Annual Notice of Changes in late September and study it carefully....

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Tax Treatment of Work-Life Referral Services

The IRS has provided informal guidance on the federal income tax treatment to an employee of certain work-life referral services offered as an employee benefit. What is a work-life referral program? Employers often provide eligible employees with a work-life referral service as an employee benefit. Work-life referral services assist employees with identifying, contacting, and negotiating with...

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After a Massive Breach, Is Your Data in Danger?

National Public Data, a consumer data broker, confirmed that a hacker had targeted the company in December 2023, "with potential leaks of certain data in April 2024 and summer 2024."1 Other reports indicate that this leaked data had been found on the dark web and  could include the names, addresses, phone numbers, and Social Security numbers of millions of Americans.2 A data breach of this...

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Monthly Market Update (August 2024): 3 Things You Need to Know

August kicked off with some market turmoil and any hopes of a late summer lull were quickly dashed. However, by month end, the market had rebounded as investors began to price in more aggressive policy easing by the Federal Reserve (Fed). Here are 3 things you need to know: The S&P 500 was up for the 4th month in a row (+2.4% in total return terms). The Magnificent 7 continued to be a drag,...

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Federal Appeals Court Blocks SAVE Student Loan Repayment Plan

On August 9, 2024, the U.S. Court of Appeals for the 8th Circuit officially blocked the SAVE student loan repayment plan in its entirety, saying the injunction would remain in place "until further order of this court or the Supreme Court of the United States."1 The ruling replaced a temporary order issued by the same court in July. The result is that millions of borrowers who enrolled in the...

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Real Estate Commissions Changes Around the Corner

In March 2024, the National Association of Realtors (NAR) reached a landmark $418 million settlement after losing an antitrust lawsuit filed by a group of home sellers. As many as 50 million people who paid commissions on homes sold in recent years could receive a small amount from the class-action settlement. The powerful industry group also agreed to change long-standing practices related to...

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2025 Key Numbers for Health Savings Accounts (HSA)

The IRS recently released the 2025 contribution limits for health savings accounts (HSAs), as well as the 2025 minimum deductible and maximum out-of-pocket amounts for high-deductible health plans (HDHPs). What is an HSA? An HSA is a tax-advantaged account that enables you to save money to cover healthcare and medical costs that your insurance doesn't pay. The funds contributed are made with...

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Interest Rates on Federal Student Loans Jump to Decade High for 2024-2025 Year

Every May, interest rates on federal student loans are reset for the upcoming school year. The rates are calculated by combining the yield on the 10-year U.S. Treasury note with an extra fixed amount set by Congress. Based on this calculation, interest rates on federal student loans are set to increase for the 2024-2025 school year by more than 1%, the fourth straight year of increases.1...

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Markets in Review

The U.S. stock market continued its upward ascent in the second quarter (Q2) of 2024, once again led by the S&P 500 Index.1 The quarter did not begin smoothly, however, with the S&P 500 Index declining by (4.2%) in April before rising by 8.4% over the last two months of the quarter. Mega cap technology stocks were at the tip of the spear once again, with the Nasdaq-100 Index2...

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Effective Communication with Participants

A recent survey found that 59% of workers thought that they were contributing to their 401(k) plan and saving for retirement when they weren’t. The Retirement Security Survey, conducted by Principal, asked participants why they weren’t enrolled in the plan and a surprising number thought they were. Even though plan provisions such as automatic enrollment and employer matching have a positive...

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Participant Notices: A Quick Overview

Retirement plans exist to provide retirement savings for participants. As a result, the participants need to be informed about plan provisions and their rights at various times. Sometimes it’s when they become eligible for the plan, before the start of a new plan year, or after the end of the plan year. Certain variables affect which of these may apply, such as plan provisions, plan type, and...

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Mastering the Art of Distributing Participant Notices

Over the years, regulatory bodies like the DOL and IRS have provided clarity on plan sponsor obligations regarding participant notice delivery. These responsibilities are critical for maintaining transparency and regulatory adherence. Some recordkeepers may offer electronic delivery options, but plan sponsors still need to understand the requirements to ensure the information is reaching all...

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Plan Ahead for 2025 Long-Term, Part-Time (LTPT) Employees

As a reminder, eligibility requirements went into effect for Long-Term, Part-Time (LTPT) employees as of January 1, 2024. However, additional changes that affect who is considered a LTPT employee will be coming for 2025. Please see the chart below to plan ahead and ask us if you have any doubts!  20242025Plan Type401(k) only401(k) and ERISA 403(b)Years of service required*32Disregard years...

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