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Safe Harbors Employer Contributions

Kaufman & Canoles

ESOPs, Benefits & Compensation Q3 2024 Client Update

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Fall greetings from the Kaufman & Canoles ESOPs, Benefits & Compensation team. We hope you’re enjoying the cooler weather, changing leaves, and—of course—the continual pace of change in employee benefits. Please find below a...more

Davis Wright Tremaine LLP

SECURE 2.0 Medley – IRS and DOL Guidance for Plan Sponsors on Recent Changes

The Internal Revenue Service and U.S. Department of Labor recently issued guidance on various aspects of the Consolidated Appropriations Act of 2023, commonly referred to as SECURE 2.0. Below is a summary of key provisions...more

Holland & Knight LLP

IRS Issues Notice 2024-2 Outlining Guidance on SECURE 2.0 Provisions

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The IRS issued Notice 2024-2 (Notice), which provides guidance in a question and answer format concerning certain provisions of the SECURE 2.0 Act of 2022 (SECURE 2.0). The following is a brief overview of key provisions in...more

Williams Mullen

IRS Reduces 2024 Affordability Percentage

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The Internal Revenue Service (IRS) decreased the Affordable Care Act (ACA) affordability percentage for 2024 to 8.39%. This percentage is used to assess whether an applicable large employer’s (ALE) lowest-premium health plan...more

Foley & Lardner LLP

Diving into SECURE 2.0: More Changes That Will Help Make 401(k) Plan Administration Simpler and Other Possible Changes of Which to...

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The SECURE 2.0 Act of 2022 (SECURE 2.0) significantly changes the legal and administrative compliance landscape for U.S. retirement plans. Foley & Lardner LLP is authoring a series of articles that take a “deep dive” into key...more

Faegre Drinker Biddle & Reath LLP

The SECURE Act 2.0: The Most Impactful Provisions #13 — Starter 401(k) Plans and Safe Harbor 403(b) Plans

Most employees who work for large and mid-sized employers have the opportunity to defer money from their paychecks into a savings-based retirement plan. That is not the case with many small employers, though, where large...more

Faegre Drinker Biddle & Reath LLP

Day of the Dead…lines: Updating Your Plan’s Safe Harbor Notice

As the end of year approaches, now is the time for safe harbor 401(k) plan sponsors to prepare their annual safe harbor notices. 401(k) Plans that satisfy nondiscrimination testing via the employer contribution safe...more

Groom Law Group, Chartered

IRS Guidance on SECURE Act Provides More Detail on Changes to Safe Harbor Plans

The Setting Every Community Up for Retirement Enhancement Act of 2019 (“SECURE Act”) made several changes to the rules for certain safe harbor 401(k) plans. One change increased the cap on automatic enrollment safe harbor...more

Patterson Belknap Webb & Tyler LLP

SECURE Act Update: IRS Issues Guidance with Respect to Safe Harbor Plans

On December 9, 2020, the Internal Revenue Service (“IRS”) issued Notice 2020-86 which provides guidance relating to certain changes to the safe harbor rules that apply to 401(k) plans made by the Setting Every Community Up...more

Locke Lord LLP

IRS Issues COVID-19 Relief on Mid-Year Changes to Safe Harbor 401(K) Plans

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The Internal Revenue Service (IRS) issued helpful guidance to plan sponsors of safe harbor 401(k) plans that are considering reducing or suspending safe harbor employer matching contributions or safe harbor nonelective...more

Holland & Hart - The Benefits Dial

Tell Me Something Good: IRS Eases Restrictions on Mid-Year Changes to Safe Harbor Contributions

The IRS has eased the restrictions on mid-year changes to safe harbor contributions, in response to the hardships caused by the coronavirus pandemic. Employers are generally not allowed to reduce or suspend safe harbor...more

Dentons

Retirement Plan Amendments During COVID-19

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As employers consider the financial impact of COVID-19, some are considering eliminating employer contributions to 401(k) and 403(b) plans. Notice 2020-52 addresses many employer concerns regarding mid-year amendments to safe...more

Seyfarth Shaw LLP

Plop, Plop, Fizz, Fizz – Relief For Safe Harbor Plans Reducing or Suspending Contributions in 2020

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Seyfarth Synopsis: Due to the significant economic impact of COVID-19 on businesses, many plan sponsors would like to reduce or suspend contributions to safe harbor 401(k) plans this year. Normally, mid-year changes to safe...more

Groom Law Group, Chartered

The IRS Provides Relief for Mid-Year Reductions in Employer Contributions to Safe Harbor Plans

On June 29, the Internal Revenue Service (“IRS”) issued Notice 2020-52, which provides guidance and temporary relief for employers who may choose to reduce contributions during 2020 to their safe harbor 401(k) or 403(b) plan....more

Proskauer - Employee Benefits & Executive...

Internal Revenue Service Provides Temporary Relief and Other Guidance on Mid-Year Reductions of Safe Harbor Contributions to...

On June 29, 2020, the Internal Revenue Service (the “IRS”) issued Notice 2020-52 that provides temporarily relief to plan sponsors that amend their safe harbor Section 401(k) or 401(m) plans (“Safe Harbor Plans”) mid-year to...more

Davis Wright Tremaine LLP

IRS Issues Temporary Relief Regarding Mid-Year Reduction of Safe Harbor Retirement Plan Contributions

The Internal Revenue Service (IRS) has issued temporary relief for sponsors of safe harbor retirement plans considering reduction or suspension of safe harbor contributions due to COVID 19. ...more

Foley & Lardner LLP

IRS Provides Additional Ways to Reduce or Suspend Safe Harbor Contributions for 2020

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To the extent plan sponsors of 401(k) or 403(b) safe harbor plans have not yet reduced or suspended safe harbor contributions for the 2020 plan year, they may now find it easier to do so under IRS Notice 2020-52, issued on...more

Morgan Lewis - ML Benefits

New IRS Guidance on Mid-Year Safe Harbor Suspension During COVID-19

IRS Notice 2020-52 provides welcome relief to plan sponsors considering suspending safe harbor matching contributions or safe harbor nonelective contributions (or who already suspended safe harbor contributions during 2020)...more

Bradley Arant Boult Cummings LLP

New Guidance on Mid-Year Changes to Safe Harbor Plans

The Internal Revenue Service has issued Notice 2020-52 to clarify the requirements that apply to a mid-year amendment of a safe harbor 401(k) plan that reduces only contributions made on behalf of highly compensated employees...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Suspending Safe Harbor Contributions Mid-Year: A Primer for Employers

As cash flow and decreased revenue concerns rise, many employers are looking for ways to cut costs. This article generally identifies the circumstances that allow a safe harbor 401(k) plan sponsor to suspend safe harbor...more

Smith Anderson

Reducing or Suspending Employer Contributions to 401(k) Plans Mid-Year

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In times of economic uncertainty, employers who typically make 401(k) matching or profit-sharing contributions often choose to reduce or suspend those contributions to conserve cash and save jobs. Figuring out whether and...more

Pullman & Comley, LLC

401(k) Plan Mid-Year Reduction or Suspension of Safe Harbor Contributions: What Can Employers Do?

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Over the past several years, many employers have adopted a safe harbor contribution feature for their 401(k) retirement plan. Employers anticipating or experiencing financial stress triggered by the COVID-19 related business...more

White and Williams LLP

IRS Extends Certain Contribution Deadlines

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On March 24, 2020, the IRS released questions and answers (Q&As) relating to the extension of the 2019 tax filing deadline originally described in Notice 2020-18 (Notice). In addition to clarifying certain issues described in...more

BCLP

COVID-19: Mid-Year Changes to 401(k) Plans

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U.S. employers looking to reduce operating costs in the short term in response to the disruption caused by the COVID-19 pandemic may seek to reduce or suspend their matching or nonelective contributions in their 401(k) plan....more

Dentons

Matching Employee Retirement Contributions during a Pandemic

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Many employers are looking at their financial sustainability for the near future as COVID-19 impacts our economy and are looking at ways to cut costs. A common question we are receiving - can we stop matching our employees’...more

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