Washington Perspective

The U.S. Department of the Treasury and IRS published guidance on the long-term part-time rules that apply to 401(k) and ERISA-covered 403(b) plans, as amended by SECURE 2.0.

The U.S. Treasury Department and Internal Revenue Service (IRS) have issued a request for information (RFI) on implementing the Saver’s Match provision of the SECURE 2.0 Act, which, beginning in 2027, will convert the existing Saver’s Credit into a refundable tax credit payable as a contribution of up to $1,000 deposited into an eligible individual’s designed retirement savings vehicle.

The U.S. Department of the Treasury and Internal Revenue Service published Notice 2024-63, providing question-and-answer guidance on the provisions of SECURE 2.0 allowing employers to make matching contributions on student loan payments by employees.

Treasury and the IRS have finalized regulations on RMDs from qualified plans and IRAs, incorporating changes from the SECURE Act and SECURE 2.0.

The IRS issued Notice 2024-55, providing guidance on the implementation of two new exceptions to the 10% early withdrawal penalties under IRC § 72. Sections 115 and 314 of the SECURE 2.0 Act of 2022 created emergency personal expense distributions and domestic abuse victim distributions, respectively.

On April 16, the Internal Revenue Service (IRS) issued Notice 2024-35 to address changes to certain provisions of the after-death required minimum distribution (RMD) rules as directed by the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019. This notice provides valuable flexibility amidst regulatory changes, offering clarity for navigating RMD obligations in the coming years.

On April 16, the Internal Revenue Service (IRS) issued Notice 2024-35 to address changes to certain provisions of the after-death required minimum distribution (RMD) rules as directed by the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019. This notice provides valuable flexibility amidst regulatory changes, offering clarity for navigating RMD obligations in the coming years.

On December 20, 2023, the U.S. Treasury Department and Internal Revenue Service (IRS) issued two pieces of guidance clarifying various provisions of the SECURE 2.0 Act of 2022. Notice 2024-2, establishes a cursory framework for employers to implement certain, but not all, provisions. Notice 2024-3, the 2023 Cumulative List for changes to pre-approved DC plans, lists the changes required for a plan to remain a safe harbor, pre-approved plan.

Today, the Internal Revenue Service (IRS) issued Notice 2023-62 announcing a 2-year administrative transition period (delay) that extends until 2026 with respect to the new SECURE 2.0 requirement that any age based catch-up contributions made by participants earning over $145,000 must be designated as after-tax Roth contributions.

On July 14, 2023, the IRS released Notice 2023-54 (the “Notice”) to provide relief with respect to certain provisions of the RMD rules of Code section 401(a)(9) that Congress changed as part of the SECURE Act and the SECURE 2.0 Act.

A bipartisan coalition of congressional leaders say they intend to introduce new legislation clarifying several SECURE 2.0 provisions in a letter directed to the U.S. Department of the Treasury and the IRS.

The IRS on May 25, 2023 released guidance on expansion of the Employee Plans Compliance Resolution System (EPCRS) under Section 305 of SECURE 2.0.

As part of our ongoing efforts to help plan sponsors comply with the many provisions of the SECURE 2.0 Act, MissionSquare has been urging lawmakers to delay by at least two years a new requirement related to age-based “catch-up” retirement contributions.

Lower Cost Investment Options, Removal of Administrative Barriers and Saver’s Match Will Strengthen Public Service Employees’ Ability to Prepare for Retirement

The SECURE 2.0 Act of 2022 includes approximately 100 provisions designed to boost participation in workplace retirement plans and reduce the cost and administrative burdens of sponsoring them.

On September 8, the Senate Finance Committee released the long-awaited legislative text for The Enhancing American Retirement Now Act, dubbed the EARN Act, that unanimously passed out of the Committee on June 22.