TRA MAKES NEWS HAPPEN

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  CASE OF THE WEEK – Creditor Protection of Retirement Assets

  January 17, 2025 - Deciding whether to keep retirement assets in a 401(k) or roll them into an IRA for creditor protection depends on the asset amount and whether bankruptcy protection is needed. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ensures strong protection for various retirement plans in bankruptcy. In nonbankruptcy situations, ERISA plans are fully protected, while IRA protection depends on state laws. Consult legal counsel for specific advice. Continue
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  Reenrollment Readiness

  January 14, 2025 - Learn the importance of conducting an annual reenrollment for your 401(k) plan. Discover how it can boost participation rates, reduce decision inertia, maximize employer match benefits, and fulfill fiduciary responsibilities. Follow best practices such as clear communication, setting reasonable default rates, offering auto-escalation, and providing financial education to ensure a successful reenrollment process. Continue
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  CASE OF THE WEEK – Age 60 – 63 Catch-up Contributions

  January 10, 2025 - Starting with the 2025 plan year, Section 109 of SECURE 2.0 raises the catch-up contribution limits for participants aged 60-63. If permitted by the plan document, eligible participants can benefit from this increase. Plan sponsors should confirm that their plan providers can accommodate this change and amend plan documents accordingly. Continue
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  Plan Sponsors Ask…

  January 8, 2025 - Discover why average fund expense ratios in your 401(k) plan's investment line-up are decreasing. Recent research from the Investment Company Institute reveals a significant drop in fees, with equity mutual fund expense ratios decreasing by 60% and bond mutual fund expense ratios by 63% from 2000 to 2023. Learn how this industry trend can benefit your retirement savings. Continue
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  CASE OF THE WEEK – Conduit IRA

  January 3, 2025 - Although not required by the IRS or DOL, conduit IRAs can be beneficial for certain individuals. Before proceeding with a qualified plan-to-IRA rollover, plan participants should consult with their tax and legal advisors to determine if a conduit IRA is advantageous for their situation. Continue
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  CASE OF THE WEEK – Cash Balance Plans and Succession Planning

  December 27, 2024 - Explore the potential of using a cash balance plan for business succession planning. Discover the theory, benefits, and challenges of funding a buyout with tax-deductible dollars through a cash balance plan. Consult your tax and legal advisors to determine if this strategy aligns with your partnership agreement and compensation levels. Continue
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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