Tuesday, September 24, 2024
How to Hit Your Stride as a Small-Business Retirement Plan Advisor
Consider Adding Roth for SECURE 2.0 Compliance
If you intend to amend your plan(s) and don’t currently offer Roth deferrals, now's the time to add this feature to ensure all participants can make catch-up contributions. With further Internal Revenue Service (IRS) guidance pending, consider adding Roth to your plan amendments for flexibility and compliance. Contact your client service team for guidance on how to amend. It’s not just about meeting new standards; it's about enhancing your retirement plan(s) for the future. Learn more about Provision 603.
Prepare for Year-End Required Minimum Distributions (RMDs)
To help you prepare for year end, we'll send you two more RMD email notifications if your plan has RMD participants.
These communications are more than reminders; they're a comprehensive resource
packed with legislative updates, critical deadlines, reference materials, and
action steps. When you receive them, review the accompanying report on the plan
website to verify the accuracy of all information.
Look for the next RMD email around October 18, followed by another
around November 18.
Understanding the Department of Labor’s (DOL's) Final Fiduciary Rule
In April 2024, the DOL
released the Retirement Security Rule, which expands the definition of an
investment advice fiduciary and requires that advice given to a broader range
of retirement investors meets fiduciary standards. This
rule also makes amendments to several prohibited transaction exemptions (PTEs),
including PTE 2020-02 and PTE 84-24 regarding eligibility and conditions for
exemption. The final rule was scheduled to go into effect on September 23,
2024. But, in July 2024, two separate U.S. District Courts ruled that the DOL
may not enforce the final rule and associated amendments to the PTEs. These
temporary orders will remain in effect until final decisions have been rendered
in each case.
Understand these changes and how they may affect retirement planning and
investment decisions for you and participants by reading more.