News & Analysis as of

403(b) Plans

Venable LLP

Supreme Court Endorses Plaintiff-Friendly Prohibited Transaction Pleading Standard

Venable LLP on

On April 17, 2025, the Supreme Court resolved a circuit split on the appropriate pleading standard for a specific type of prohibited transaction claim under ERISA. While that decision may sound dry and technical, the...more

Foley & Lardner LLP

Taming the Tariffs: Employee Benefit Issues for Employers During Times of Economic Uncertainty – Reducing or Suspending Qualified...

Foley & Lardner LLP on

Many companies are scrambling to quickly assess how to reduce the business impact of the upheaval to U.S. manufacturing and trading with the recent onslaught of tariffs threatened or imposed by the United States and the...more

Faegre Drinker Biddle & Reath LLP

(Auto) Enroll With It: Understanding the New Automatic Enrollment Requirements

On January 10, 2025, the Treasury Department and the Internal Revenue Service issued Proposed Regulations on the automatic enrollment requirements introduced by SECURE 2.0.  The Proposed Regulations incorporate and expand...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Retirement Account Balances are up

According to Fidelity, Retirement account balances have reached all-time highs. At the end of 2024, the average balance in 401(k) plans was $132,300, and in 403(b)s, it was $119,300. The average overall contribution rates are...more

Best Best & Krieger LLP

403(B) Plan Employer Eligibility Failures

One of the principal drivers of 403(b) Plans for governmental agencies is that when they are combined with a governmental 457(b) Plan, employees eligible for both plans may “double dip.” This is a common scenario for...more

Kilpatrick

IRS Issues Proposed Regulations Regarding Mandatory Auto-Enrollment Under SECURE 2.0

Kilpatrick on

The IRS and Treasury Department recently issued proposed regulations addressing the mandatory automatic enrollment provisions under the SECURE 2.0 Act of 2022 (SECURE 2.0). The proposed regulations generally adopt the...more

Morgan Lewis

IRS Issues Proposed Regulations on SECURE 2.0 Catch-Up Contribution Changes – Publications

Morgan Lewis on

The Internal Revenue Service (IRS) issued proposed regulations providing guidance on how to interpret and implement changes to "catch-up" contributions made by the SECURE 2.0 Act of 2022 (SECURE 2.0). The regulations mainly...more

Kilpatrick

IRS Issues Proposed Regulations on SECURE 2.0 Catch-Up Changes

Kilpatrick on

On January 10, 2025, the IRS and Treasury announced proposed regulations addressing catch-up contribution provisions under the SECURE 2.0 Act of 2022 (SECURE 2.0) for 401(k) plans, 403(b) plans and governmental 457(b)...more

Carlton Fields

The Case of Excessive Fees: Supreme Court to Investigate Pleading Standard in ERISA Excessive Fee Litigation

Carlton Fields on

ERISA class action litigation against retirement plan fiduciaries remains a prominent feature of the legal landscape this year. These lawsuits typically involve allegations that plan fiduciaries acted imprudently in...more

Epstein Becker & Green

Employee Benefit Strategies to Aid Workers During 2025 California Wildfires

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The wildfires moving through Southern California have destroyed communities and displaced countless individuals....more

Groom Law Group, Chartered

IRS Issues Guidance on Mandatory Automatic Enrollment

On January 10, 2025, the Treasury Department and the IRS issued Proposed Regulations addressing one of SECURE 2.0’s signature requirements: that all newly established 401(k) plans and 403(b) plans with cash or deferred...more

Faegre Drinker Biddle & Reath LLP

Things I Worry About (6): Automatic Enrollment (5) and PEPs

SECURE 2.0 was enacted on December 29, 2022. Among its provisions is a requirement that “new” 401(k) plans and private sector 403(b) plans must automatically enroll their eligible employees, but not until the first plan year...more

Groom Law Group, Chartered

IRS Issues Much Anticipated Guidance on Catch-Up Contributions

On January 10, 2025, the Department of the Treasury (“Treasury”) and the Internal Revenue Service (“IRS”) issued proposed regulations regarding the provisions of the SECURE 2.0 Act of 2022 (“SECURE 2.0”) that relate to...more

Bricker Graydon LLP

Act 3: To Roth or Not to Roth - That Is No Longer the Question for Some Catch-Up Eligible Individuals

Bricker Graydon LLP on

The IRS this past Friday issued proposed regulations regarding mandatory Roth catch-up contributions. SECURE 2.0 amended the catch-up contribution provisions of the Code....more

Stinson - Benefits Notes Blog

New Year Brings New Automatic Enrollment and Escalation Requirements for Some Recently Adopted 401(k) and 403(b) Plans

The SECURE 2.0 Act of 2022 requires certain 401(k) and 403(b) plans to include automatic enrollment and escalation features for the first plan year beginning after December 31, 2024, meaning that for those plans with a...more

The Wagner Law Group

IRS Provides Guidance on Application of SECURE 2.0 Act’s Coverage of Long-Term, Part-Time Employees

The Wagner Law Group on

In Notice 2024-73, the Internal Revenue Service (“IRS”) issued guidance on the application of certain non-discrimination rules to long-term, part-time employees in Internal Revenue Code (“Code”) Section 403(b) plans subject...more

Mayer Brown

IRS Annual Limits for Benefit Plans: 2025 Cost of Living Adjustments

Mayer Brown on

The US Internal Revenue Service (IRS) has released its 2025 cost-of-living adjustments applicable to employee benefit plans. A year-to-year comparison of limitations is below....more

Clark Hill PLC

2025 Benefits Limits

Clark Hill PLC on

Happy Holidays! Employee benefits limits for 2025 have been promulgated by the government. Click the link below to view 2024-2025 comparisons of important employee benefits limits....more

Tarter Krinsky & Drogin LLP

Year-End and 2025 Action Items for Health Funds and 401(k) Plans

Group health plans, including insured and self-insured plans, are prohibited from entering contracts that contain a gag clause. These provisions prohibit group health plans from entering agreements with a healthcare...more

Warner Norcross + Judd

SECURE 2.0 Updates to Think About for 2025

Warner Norcross + Judd on

As 2025 approaches, we want to share important reminders about key changes from the SECURE 2.0 legislation that have taken effect or will take effect soon. •Increased Catch-up Contribution Limit for Ages 60 - 63....more

Bowditch & Dewey

IRS Issues Updates to Retirement Plan Rules under SECURE Act 2.0

Bowditch & Dewey on

On July 19, 2024, the Internal Revenue Service (“IRS”) issued final regulations (“2024 regulations”) regarding the SECURE Act of 2019 and the SECURE Act 2.0 of 2022, which apply to 401(a) plans, 401(k) plans, traditional and...more

Faegre Drinker Biddle & Reath LLP

Things I Worry About (5): Long-Term, Part-Time Employees (1)

The SECURE Act (“SECURE 1.0”) included a provision that required sponsors of 401(k) plans to include their long-term, part-time, or LTPT, employees in their plans for purposes of deferring part of their compensation into the...more

Pullman & Comley - Labor, Employment and...

Adding Enhanced Catch-Up Provisions to Your Retirement Plan

Since 2002, employers have been able to make catch-up salary deferrals to their employees in their 401(k), 403(b), and governmental 457(b) plans beginning in the calendar year in which they turn 50 (the “Age 50 Catch-up”)....more

The Wagner Law Group

Prepare for Upcoming Changes to Retirement Plans for 2025

The Wagner Law Group on

The SECURE 2.0 Act of 2022 (the “SECURE 2.0”) made significant changes to retirement plans and how they operate. Many of the changes have already been implemented by service providers, but some sponsors will need to plan for...more

Faegre Drinker Biddle & Reath LLP

Things I Worry About (4): Automatic Enrollment (4)

SECURE 2.0 was enacted on December 29, 2022. Among its provisions is a requirement that “new” 401(k) plans and private sector 403(b) plans must automatically enroll their eligible employees, but not until the first plan year...more

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