The Internal Revenue Service announced the 2025 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 2025. Most of the dollar limits, including the elective deferral contribution limit for 401(k), 403(b) and 457(b) plans, the
IRS Issues COVID-19 Relief on Mid-Year Changes to Safe Harbor 401(K) Plans
The Internal Revenue Service (IRS) issued helpful guidance to plan sponsors of safe harbor 401(k) plans that are considering reducing or suspending safe harbor employer matching contributions or safe harbor nonelective contributions as a result of the COVID-19 pandemic. As explained below, IRS Notice 2020-52 provides temporary relief from certain
DOL Information Letter Allows Private Equity Investments in Defined Contribution Plans
On June 3, 2020, through the issuance of an information letter (the “Letter”), the Department of Labor (the “DoL”) effectively expanded the realm of investment alternatives for 401(k) plans and other defined contribution plans to include private equity. The guidance is clearly a boon to the private equity industry, which
Legislation Proposed to Allow Employers to Make Matching Contributions on Student Loan Repayments
Two bills have been introduced in the Senate that would allow employers to make matching contributions under 401(k), 403(b), governmental 457(b) and SIMPLE plans as if the participant’s student loan payments were salary reduction contributions. On May 13, Senator Ron Wyden (R-OR) reintroduced the Retirement Parity for Student Loans Act
IRS Issues Final Regulations on 401(k) Hardship Distributions
The Internal Revenue Service recently published final regulations modifying the rules relating to hardship distributions from Sections 401(k) and 403(b) plans. The final regulations reflect statutory changes affecting Section 401(k) and 403(b) plans, including changes made by the Bipartisan Budget Act of 2018.
The final regulations are substantially similar to
Locke Lord QuickStudy: IRS Announces 2020 Retirement Plan Limitations – Most Limits are Increased
The Internal Revenue Service announced the 2020 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 2020. The elective deferral contribution limit for 401(k), 403(b) and 457(b) plans will increase to