Navigating your 401(k) during a global pandemic

Investing in your 401(k) is an idea that is hammered into our brains at a young age. We are constantly reminded of it because setting aside an amount of money on a consistent basis for the future will make a significant difference when we approach retirement.  This simple task can turn out to be difficult …

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Impact of employee reduction on employee benefit plans

In the wake of the COVID-19 pandemic and the resulting economic uncertainty, employers are faced with decisions that could have significant impacts on their 401k retirement plans. A serious decision that employers face is a potential reduction in employees. It is important to consider the impact this decision can have on the retirement plan. A …

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What to do with your deceased spouse’s IRA

If your spouse has died, what should be done with their IRA? To start, you have two options not available to other beneficiaries. Roll the decedent’s IRA into an IRA established in your name (spousal rollover) Elect to treat the decedent’s IRA as your own IRA (spousal election) Don’t miss: Balancing investments in times of …

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Take CARES – Impact to employee benefit plans

In response to the impact of COVID-19 Congress placed into law the Coronavirus Aid, Relief and Economic Security Act or the “CARES Act”. What does this 883-page law mean for retirement plans and their participants?  The CARES Act includes provisions that expand the availability of retirement funds to those who have been impacted by COVID-19. …

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Big changes in IRAs – Expanding the definition of earned income

Recently, Congress passed and the President signed the SECURE Act “Setting Every Community Up for Retirement Enhancement”. This new legislation is the first major retirement reform since the Pension Protection Act in 2006. Don’t miss: IRA contribution and distributions to charity Many changes in the SECURE Act affect both 401k’s and IRA’s but one of …

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IRA contributions and IRA distributions to charity changed under new tax law

Before 2019’s SECURE Act, you could not contribute to a traditional IRA account in the year you turned 70 1/2 and later years. Under the new SECURE Act, this age limit is repealed for contributions starting in 2020. Don’t miss: SECURE Act changes deadline for retirement plan As life expectancy for the average person increases, …

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Small employer automatic enrollment credit

As a business owner, you are probably well-aware that offering a 401(k) plan to your employees has its advantages—ease of talent acquisition, increased retention rates and high morale. But if you happen to be a small business owner, providing a retirement plan to employees may not seem entirely feasible. Start-up costs are often expensive, the …

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Required minimum distribution age raised with SECURE Act

As many know, the rule prior to the new SECURE Act stated required minimum distributions (RMDs) from traditional IRA or other qualified retirement plans were required to be taken by April 1 following the year a taxpayer reached the age of 70 ½. This rule is still in place for people who turned 70 ½ …

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SECURE act changes deadline for retirement plans

Near the end of 2019, congress passed the Setting Every Community Up for Retirement Enhancement Act, or as most people call it, the SECURE Act. If you are a frequent reader of our blogs, you’ve probably noticed that we’ve had quite a few about the SECURE Act and all of the changes it made going …

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Retirement plan and IRA cost of living adjustments for 2020

The tax law places limits on the dollar amount of contributions to retirement plans and IRAs. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases. Don’t miss: Important information when changing plan administrators The below table shows a three-year comparison (starting in 2020) of certain retirement plan limits. Plan sponsors should …

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