Is Early Retirement the Right Choice?
Federal employees facing layoffs or considering early retirement likely find themselves evaluating financial strategies and career options. What should you consider and how may you be impacted?
Roth Employer Contributions
Roth elective deferral contributions have been permitted in qualified retirement plans since 2006. Section 604 of SECURE 2.0 provided for an optional provision that allows employees to designate their employer contributions, whether it be matching nonelective, as Roth. This applies to 401(k) Plans and 403(b) Plan. This was effective December 29, 2022; however, several challenges delayed implementation of this provision.
2025 Limits for Retirement Plan Contributions
The IRS released Notice 2024-80 on November 1, 2024 announcing the new contribution and benefit limits for 2025.
SECURE 2.0 Act – Increased Involuntary Cash-Out Limit to $7,000
Learn about the SECURE 2.0 involuntary cash out limit increase. Effective for distributions after December 31, 2023, SECURE 2.0 allows the plan sponsor to increase the cash-out limit to $7,000 from the previous limit of $5,000.
Higher Catch-Up Contribution Limit Coming in 2025
Section 109 of SECURE 2.0 provided for a higher catch-up contribution limit beginning in 2025 for participants in a 401(k) or 403(b) plan for a specific population of employees.
SECURE 2.0 Act – Mandatory Automatic Enrollment
Learn more about what is needed for retirement plans. For plan years beginning on or after January 1, 2025, SECURE 2.0 requires certain plan sponsors of a 401(k) plan or 403(b) plan to adopt automatic enrollment provisions.
SECURE 2.0 Act – Employer Matches of Qualified Student Loan Payments (QSLPs)
Section 110 of the SECURE 2.0 Act allows plan sponsors to treat student loan payments as elective deferrals to match contributions effective for plan years beginning after December 31, 2023. Plan sponsors considering allowing employer match contributions of qualified student loan payments (QSLPs) might have postponed their decision until further guidance was provided. On August 19, 2024, the IRS issued interim guidance that will assist plan sponsors in determining whether to adopt the provisions.
Automatic Enrollment in a Retirement Plan – Part 1
Learn about the Pension Protection Act which allows for automatic enrollment in a 401(k) Plan and the pros and cons involved.
Meeting the DOL’s Requirements for Timely Deposits of Employee Deferrals
Understand the importance of meeting the Department of Labor's requirement for timely deposits of employee deferrals.
SECURE 2.0 Act – New Retirement Plan Distribution Options
Discover how SECURE 2.0 Act provides more flexibility for retirement plan participants.