TRA MAKES NEWS HAPPEN

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  CASE OF THE WEEK – SIMPLE IRA Termination and Combo Plans

  November 22, 2024 - By Jenny Kiffmeyer, J.D – The Retirement Learning Center Can I terminate my SIMPLE IRA plan mid-year and implement a combo Safe Harbor 401(k) and cash balance plan in the same year? Highlights of the discussion Notice 2024-02 clarified that a SIMPLE IRA plan can be terminated mid-year if the plan sponsor establishes and maintains a Safe Harbor 401(k) as a replacement plan. The employer... Continue
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  CASE OF THE WEEK – Change from SIMPLE IRA to Safe Harbor 401(k)

  November 15, 2024 - Notice 2024-2 states there's no specific deadline for establishing a safe harbor 401(k) plan when replacing a SIMPLE IRA mid-year. The usual October 1 deadline doesn't apply. As long as a 30-day notice is given before terminating the SIMPLE IRA and there are days left in the year for the safe harbor 401(k) plan to be effective, the transition requirements can be met. However, fewer effective days may limit leveraging the higher deferral limits. Continue
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  Tax Advantages of a Cash Balance Plan – Cash Balance Plan Tax Deduction

  November 12, 2024 - Contact TRA today to take advantage of these potential tax savings and elevate your retirement strategy. Let us help you create a plan that not only benefits your bottom line but also supports the financial well-being of your entire team. Continue
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  CASE OF THE WEEK – Auto Enroll

  November 8, 2024 - Design a flexible retirement plan that meets the new automatic enrollment requirements of Section 101 of Secure Act 2.0. Once a compliant EACA is established, plan sponsors should incorporate the appropriate language into the plan document, notify the payroll department, update and distribute summary plan descriptions, provide the required EACA notice on time, and coordinate changes with the record keeper or TPA. Continue
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  Plan Sponsors Ask…

  November 5, 2024 - Vanguard’s "How America Saves 2024" reports 82% of employers offer a Roth 401(k), but only 17% of employees contribute. Boost participation with an education campaign on Roth versus traditional 401(k) options to promote awareness and informed choices. Continue
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  401k and Retirement Plan Limits for the Tax Year 2025

  November 4, 2024 - Maximize your retirement savings with the updated 2025 contribution limits and key changes from SECURE 2.0. Discover new limits for 401(k), IRA, HSA, FSA, SIMPLE IRA, and SEP IRA accounts. Learn how increased catch-up contributions, automatic enrollment, and student loan matching can enhance your savings strategy. Get expert guidance from TRA. Continue
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  CASE OF THE WEEK – Litigation Update

  November 1, 2024 - With the rise in litigation related to pension risk transfers, plan sponsors must carefully select annuity providers. Interpretive Bulletin 95-1 outlines essential factors for fiduciaries to consider. Thorough documentation of the selection process is crucial. Continue
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  Handle With Care

  October 30, 2024 - Bank of America’s 2024 Workplace Benefits Report reveals 52% of the workforce are caregivers, facing challenges like time management, career impact, financial stress, and health issues. Employers can support caregivers with flexible scheduling, leave options, legal services, and targeted financial education to improve their work-life balance and financial wellness. Continue
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  Retirement Considerations and the Election’s Impact

  October 29, 2024 - Retirees should prepare by incorporating potential tax increases and Social Security changes into their financial plans. Monitoring election results and subsequent legislative actions will be crucial for adjusting retirement strategies to ensure financial stability in the face of evolving tax and benefit landscapes. Continue
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  CASE OF THE WEEK – Cash Balance Plan and Successor Plan Rules

  October 25, 2024 - There is no successor plan rule that applies to defined benefit plans, including cash balance plans. Further, the IRS does not consider a cash balance plan as a successor plan for a terminated 401(k) plan. All plans are subject to permanency rules. Continue