The Internal Revenue Service announced the 2024 cost-of-living adjustments to the dollar limitations for qualified retirement plans and other benefits, and the Social Security Administration announced its own cost-of-living adjustments for 2024. Most of the dollar limits, including the elective deferral contribution limit for 401(k), 403(b) and 457(b) plans, the annual compensation limit under 401(a)(17) and the maximum annual contribution limit under Code Section 415(c) will increase from 2023 limits. The dollar limit for catch-up contributions (if age 50 or older) remains the same as the 2023 limit.
IRS Proposes Regulations on Using Forfeitures in Qualified Retirement Plans
Introduction
On February 27, 2023, the Department of the Treasury (“Treasury”) and Internal Revenue Service (“IRS”) issued proposed regulations (the “Proposed Regulations”) relating to forfeitures in tax-qualified defined benefit and defined contribution plans. Forfeitures generally arise when a participant terminates employment before completing the
A Tale of Two Remedies: Preparing Employee Benefits Plans for the Sunset of Covid-19 Relief
On January 30, 2023, the Biden Administration announced that both the COVID-19 National Emergency and the Public Health Emergency (collectively, the “Emergency Declarations”) would end on May 11, 2023, sunsetting nearly three years of extended deadlines and certain mandates related to COVID-19 testing and vaccines applicable to employer-sponsored
Locke Lord QuickStudy: Secure 2.0: Top Changes Affecting Retirement Plans
The Securing a Strong Retirement Act of 2022 (“SECURE 2.0”) was signed into law by President Joseph Biden on December 29, 2022 as part of the Consolidated Appropriations Act of 2023. SECURE 2.0 expands upon the retirement plan provisions contained in the Setting Every Community Up for Retirement Enhancement Act
IRS Announces 2023 Retirement Plan Limits – Unprecedented Increases to All Limits
The Internal Revenue Service announced the 2023 cost-of-living adjustments to the dollar limitations for qualified retirement plans and other benefits, and the Social Security Administration announced its own cost-of-living adjustments for 2023. All of the dollar limits, including the elective deferral contribution limit for 401(k), 403(b) and 457(b) plans, the
IRS Extends Deadlines for Adopting CARES Act Amendments for Retirement Plans
On September 26, 2022, the Internal Revenue Service issued IRS Notice 2022-45, which extends the deadline for amending retirement plans to reflect certain optional and required changes under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and section 302 of Title III of the Taxpayer Certainty and Disaster
IRS Notice 2022-33 Extends Retirement Plan Amendment Deadlines
On August 3, 2022, the Internal Revenue Service issued IRS Notice 2022-33, which extends the deadline for amending certain plans with the applicable requirements of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), the Bipartisan American Miners Act of 2019 (Miners Act), and one provision
IRS Announces New 90-Day Pre-Examination Compliance Pilot Program for Retirement Plans
In its June 3, 2022 Employee Plans Newsletter, the IRS announced a pilot pre-examination retirement plan compliance program beginning in June 2022. Under the pilot program, the IRS will notify a qualified plan sponsor by letter that its retirement plan has been selected for an upcoming examination.
The IRS’s letter
Additional Guidance Issued on Coverage for OTC COVID-19 Tests
On February 4, 2022, the Departments of Labor, Health and Human Services and the Treasury (the “Departments”) released additional Frequently Asked Questions (FAQs) regarding group health plan coverage of over-the-counter at-home COVID-19 tests (OTC Tests) plans, without participant cost-sharing, preauthorization, or medical management. The February FAQs provide clarification on the
Group Health Plans Must Pay For Over-The-Counter At-Home COVID-19 Tests
Beginning January 15, 2022, and continuing throughout the duration of the public health emergency, group health plans and insurers are required to cover over-the-counter (OTC) at-home COVID-19 tests (OTC Tests), including tests not ordered by a health care provider, without participant cost-sharing, preauthorization, or medical management, according to Frequently Asked