TRA MAKES NEWS HAPPEN

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  CASE OF THE WEEK – Deferral Limits for Off-Calendar Year Plans

  December 20, 2024 - For businesses that run on a fiscal rather than calendar tax year, they may choose to run their plans on the same fiscal year. Applying plan limits for non-calendar year plans can be tricky. There are a few rules plans sponsors and their recordkeepers must follow to ensure that deferral, compensation and contribution limits are properly tracked. Continue
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  CASE OF THE WEEK – Qualified Charitable Distributions (QCDs)

  December 12, 2024 - IRA owners and beneficiaries aged 70½ and older, including those with inactive SEP or SIMPLE IRAs, can benefit from directing Qualified Charitable Distributions (QCDs) to their preferred charities. Continue
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  401(k) vs Roth 401(k)

  December 10, 2024 - Contact TRA today to explore retirement plan options that fit your business. Our team can help you decide whether a 401(k), Roth 401(k), or both is best suited for your employees, providing guidance every step of the way. Continue
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  CASE OF THE WEEK – Disabled and Chronically Ill

  December 3, 2024 - The SECURE Act introduced eligible designated beneficiaries (EDB) for required minimum distributions (RMDs). EDBs include spouses, disabled or chronically ill beneficiaries, beneficiaries within 10 years of the decedent's age, and minor children. EDBs can stretch RMDs over their lifetimes using the Single Life Table, rather than the 10-year rule. Continue
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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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  The Tax Advantages of a Cash Balance Plan

  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