Vanguard economic and market outlook for 2024: A return to sound money

Read our report about how today’s high-rate environment—with interest rates finally outpacing inflation, as they likely will for several years—may be the best development for savers and investors in two decades. 

Coming soon: Easier access to forfeiture and suspense accounts

Payroll management is a top priority, so we’re making it easier to use forfeiture and suspense accounts to fund employer contributions through the plan website. Soon, you’ll be able to:

• Quickly access the Forfeiture and Suspense report on the plan website to determine balances available for use.
• View your options and use these funds at the point of payroll management, simplifying your day-to-day tasks.

When using forfeiture and/or suspense account balances to offset administrative costs or fund employer contributions, be sure to follow regulatory guidelines. Once available, we’ll share more information about ways to take advantage of these opportunities throughout the year. Contact your client service team with any questions about your plan’s options.

Keep pace with changes from the SECURE 2.0 Act of 2022 (SECURE 2.0)

As SECURE 2.0 legislation evolves, we want to keep you informed and help you prepare. Our new Guide to SECURE 2.0: Provisions for Plan Sponsors is your single source of information about provisions that may affect your plan and employee(s). Visit the News & Communications section of your plan website to view the guide and read about provisions, such as:

• Provision 304: Cash-out dollar limit increase from $5,000 to $7,000. If your plan elected the maximum cash-out limit of $5,000 as of the end of 2023, your plan was defaulted to the new maximum limit of $7,000 as of January 1, 2024.
  
• Provision 312: Employer reliance on employee certification for deemed hardship distributions. Participants may now self-certify that a distribution qualifies as a safe harbor hardship distribution. Additionally, all plans that allow for hardship distributions have been defaulted to allow for self-certification, unless we have been instructed otherwise.
  
• Provision 325: Exempting designated Roth accounts from required minimum distributions (RMDs). Effective for RMDs beginning in 2024, Roth balances are no longer included when calculating the participant’s RMD and should not be counted towards satisfying a participant’s RMD.

Use the guide to understand the provisions, steps we’re taking, and what you may need to do to comply with the new legislation. It will be periodically updated to reflect the most current guidance.

Send notices to newly eligibles via eDelivery

It takes time and money to prepare, print, and send hardcopy notices to your participants. But notices for newly eligible plan participants are now available electronically, making it easier for you to deliver important plan-related information. Go paperless from the homepage of your plan website or navigate to Plan > Delivery Services to review your current elections. Contact your client service team with any questions.

Vanguard economic and market outlook for 2024: Global summary

Read more for Vanguard’s thoughts regarding the future of the global economy.