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Effective January 2024, long-term, part-time employees will become eligible to contribute pre-tax earnings to 401(k) plans. Read on to learn more. Facts This is a change from current rules which give employers the option to limit plan participation to employees who have completed a year of service (usually the preceding 12 months), working 1,000 hours […]
In our latest installment of Ask the Expert, brought to you by the team of industry experts at HR Hero®, we look at a recent question from a subscriber regarding a requested disability workplace accommodation where the validity is in question. What abilities, obligations, and limitations does an employer have to verify an employee’s medical accommodation […]
The use of 401(k) plan loans in 2018 fell to a 9-year low of 22.5% of participants and continued a steady 6-year decline of nearly 10 percentage points, investment management firm T. Rowe Price said on May 1, drawing on data gathered from nearly 2 million participants for its annual benchmarking report.
The federal government should take steps to clarify whether millions of dollars of retirement savings transfers to states from employer-based plans such as 401(k)s constitute reportable and taxable distributions, according to a report by the Government Accountability Office (GAO).
We recently reported that employer-sponsored 401(k) plans with above-average performance criteria are likely to be offered by companies that have 20-percent to 80-percent higher corporate profitability than companies with average-rated plans. This was all according to new T. Rowe Price research. Today we have new analysis of that report by our Benefits Editor, Jane Meacham.
We know a well managed 401(k) can help employees plan for retirement, but what do 401(k)’s do for employers? New research shows it might just be helping their bottom line.
The Internal Revenue Service (IRS) and U.S. Treasury Department on July 20 issued final regulations amending the definitions of qualified nonelective contribution (QNEC) and qualified matching contribution (QMAC) for employer-sponsored retirement plans to resolve questions about whether participant forfeitures can be used to fund QNECs and QMACs.
The Bipartisan Budget Act of 2018 passed by Congress on February 8 and signed the next day by President Trump didn’t change retirement savings taxation or contribution limits, but it did bring good news for some plan activities.
Defined contribution (DC) plan sponsors should be aware of a change under the new Tax Cuts and Jobs Act that extends the period during which a participant may pay the amount of an “offset” of an outstanding 401(k) plan loan to another qualifying plan or individual retirement account (IRA) to accomplish a tax-free rollover of […]
In this article, we’ll look at some of the key benefits 401(k)s provide to both employees and employers, as well as some important practical considerations. Many thanks to Arris Murphy, J.D., Contributing Editor to BLR’s The 401(k) Handbook, from which the material for this piece originated.