Most years, the only thing we have to worry about when it comes to retirement plan administration is adjusting for the cost-of-living increase to contribution limits. Some years we don’t even have that, but this year is an exception with that, plus major changes you will need to make and consider. So first, the easy stuff. The cost-of-living increase, to the maximum amount an individual can contribute to their 401(k), 403(b), governmental 457 and the Thrift Savings plans, will be increased to $23,500, up from $23,000 in 2024. The catch-up contribution will remain at $7,500 and the limit on annual…
Posts tagged as “Catch-up”
Whether you are a working employee, someone in their retirement or an employer/plan sponsor, the SECURE 2.0 Act of 2022 has something for everyone. It was included as part of the Consolidated Appropriations Act, 2023, which was passed by Congress on December 23, 2022 and signed into law by President Biden on December 29, 2022. While there is something for everyone, we will focus on the areas in which it affects employers. Some items are effective this year while others will phase in over the next couple of years, but it may be a good idea to start planning today.…