TRA MAKES NEWS HAPPEN

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  CASE OF THE WEEK – The ABC’s of 401(h) Plans

  December 9, 2022 - Pension plan sponsors may find 401(h) accounts appealing as one way to provide for the payment of retiree medical benefits. Depending on the terms of the plan, a 401(h) account can receive employer and/or employee contributions as well as transfers of excess pension benefits, provided certain requirements are met. 401(h) account contributions are tax deductible; earnings are tax-deferred; and distribution can be tax free. Continue
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  CASE OF THE WEEK – Yes—There is Still Time for a Safe Harbor Plan for 2022!

  December 7, 2022 - Thanks to the SECURE Act, 401(k) plan sponsors have more flexibility to amend their plans for “safe harbor” status. Plan sponsors who are failing their actual deferral percentage (ADP) tests for the year may find this type of plan amendment attractive as a correction measure Continue
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  Plan Sponsors Ask…

  December 6, 2022 - The IRS Employee Plans function is piloting a pre-examination retirement plan compliance program beginning in June 2022. This program will notify a plan sponsor by letter that their retirement plan was selected for an upcoming examination. Continue
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  Case of the Week – Aggregating RMDs

  December 1, 2022 - In most cases, individuals who are over age 72 are required to take RMDs from their tax-favored retirement accounts on an annual basis. There is some ability to aggregate RMDs for IRAs and 403(b)s, but one must be careful to apply the rules for RMD aggregation correctly. Failure to take an RMD when required could subject the recipient to a sizeable penalty (i.e., 50 percent of the amount not taken). Continue
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  Everybody Wins

  November 29, 2022 - Depending on the nature of your business and the varied experience, education and expertise required of your workforce, you may have a significant population of lower-income workers. In a highly competitive hiring environment, the following plan design ideas can help attract and retain workers. By adding just a little flexibility to better accommodate your lower-income workers, everybody wins. Continue
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  Plan Sponsors Ask…

  November 22, 2022 - Planning for retirement has always been challenging because retirees face numerous risks and may not perceive them accurately. This study develops a lifecycle model of a typical retired household facing five categories of risk from both the objective and subjective perspectives. Continue
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  CASE OF THE WEEK – Roth IRA or In-Plan Conversion Deadline for 2022 Taxation

  November 18, 2022 - The deadline for completing a Roth IRA or Roth in-plan conversion depends on the year in which an individual wants to include the taxable portion of the Roth conversion in income. A Roth conversion is taxable in the year it is completed. To be taxable for a particular year, the conversion must be completed by December 31st. Continue
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  PRESS RELEASE – The Retirement Advantage Hires New York / New Jersey Regional Sales Consultant

  November 16, 2022 - The Retirement Advantage, Inc. (TRA), an industry-leading national retirement services company is pleased to welcome Michael Schessler to their Regional Sales Consultant team. Schessler will be providing retirement plan consulting services in New York and Northern New Jersey, and will report to Darin Erdmann, TRA’s National Sales Manager. Continue
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  Eyes on the Prize

  November 15, 2022 - Retirement plan participants broke new savings records in 2021, a testament to the willingness of plan sponsors to implement smart plan design. How America Saves shows improvement is possible. It documents how sponsors have successfully used plan design to improve participant outcomes. And it points to how, together, we can take plan design to the next level. Continue
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  Case of the Week – Don’t Forget About the Benefits of a Qualified Charitable Distribution for 2022

  November 11, 2022 - Eligible IRA owners and beneficiaries age 70 ½ and over, including those with inactive SEP or SIMPLE IRAs, should be aware of the benefits of directing QCDs to their favorite charitable organizations. Continue