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News Archive
3 Things to Include in SECURE ‘3.0’: Shlomo Benartzi
The ink isn’t dry on SECURE 2.0, but it isn’t preventing high-profile behavioral economist Shlomo Benartzi, Ph.D., from looking ahead to what’s next. It’s what he does. “While Secure 2.0 actually made great progress, I’m thinking about what should be in Secure 3.0,” Benartzi, Distinguished Senior Fellow at the Wharton Behavior Change for Good... Read More >>
QOTW: LTPT Eligibility SECURE 1&2
Sponsored by MFS Investment Management. SECURE 1.0 passed in 2019 included a provision requiring plans to allow LTPT employees (those that work more than 500 hours in a year for three consecutive years) to participate in the plan. SECURE 2.0 reduced that three years of consecutive employment to two. This week we asked members if they made... Read More >>
QOTW: Distributions for Natural Disasters
Sponsored by MFS Investment Management. Last week we asked plan sponsors how likely they were to add the optional SECURE 2.0 provision allowing penalty-free distributions for natural disasters. Not surprisingly, the answer is largely dependent on location. Though nearly forty percent of plans “definitely will” or “likely will” add this... Read More >>
QOTW: Employer Contributions as Roth
One of the optional provisions of SECURE 2.0 would allow participants to elect employer contributions as Roth after-tax contributions (rather than only employee contributions if the plan currently offers Roth). Some PSCA members are considering this – have had participants request this provision – and wanted to know if other sponsors are likely to... Read More >>
QOTW: Student Loan Matching
Starting January 1, 2024, employers will be able to make contributions to the 401(k) plan based on a participant’s student loan payments. This provision is optional so this week we asked companies if it is something they are likely to adopt. As we’ve seen before when this was just a possibility, some companies are very excited about being able to... Read More >>
QOTW: Catch-ups as Roth
One of the revenue raising provisions of SECURE 2.0 is to require catch-up contributions to be Roth contributions for employees making $145k per year or more (the HCE definition). Though most plans allow catchup contributions, not all plans allow Roth (especially 403(b) plans). In this week’s QOTW we asked plan sponsors if they will need to make... Read More >>
QOTW: SECURE 2.0 Emergency Savings Provisions
In the recently passed SECURE 2.0, there are two optional provisions geared towards helping participants create an emergency savings account. One option is to provide a side-car account where the employer matches money deferred into an emergency savings account with a matching contribution to the 401(k) account. The other option is a penalty-free... Read More >>
Major SECURE 2.0 Error Puts Catch-Ups in Jeopardy: ARA’s Graff
The American Retirement Association (ARA) recently identified what it calls a “significant technical error” in the SECURE 2.0 Act of 2022 regarding catch-up contributions. Specifically, according to wording in the current legislation, beginning in 2024, no participants will be able to make catch-up contributions (pre-tax or Roth). That’s the... Read More >>
Your Health Plan is the Latest Fiduciary Ticking Time bomb
The Consolidated Appropriations Act of 2021 (CAA) is the most significant compliance challenge employers have faced since the Affordable Care Act. New requirements are in effect now, including: Required review of plan contracts and removal of all “gag clauses,” Required determination of “reasonableness” of vendor fees and services, Required... Read More >>
QOTW: Beneficiary Forms
A PSCA member reached out stating that they struggle to get more than 2/3 of participants to complete a beneficiary designation form and wondered if other companies have strategies to increase that rate. This appears to be a very common dilemma among members as only a quarter of respondents indicated that most of their participant have valid... Read More >>