Compliance Updates

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Compliance Is a Shared Responsibility

We help you stay current on retirement plan rules and best practices.

Compliance Highlights

Managing a retirement plan comes with a range of regulatory responsibilities that can quickly become time-consuming. As a plan sponsor, youโ€™re expected to meet strict oversight standardsโ€”while also running your business or organization. Our team helps streamline these obligations by handling the heavy lifting of plan administration and investment oversight, allowing you to stay focused on your core operations without compromising plan quality or compliance.

Why These Updates Matter

Employers must adapt to ensure your retirement plan remains compliantโ€”and beneficialโ€”for both your team and your business. Stay ahead with these strategic enhancements and informed decision-making.

Take Action Now

  • Review plan provisions for auto-enrollment, part-time eligibility, and catch-up contributions.
  • Ensure your RMD processes, funding notices, and error-correction procedures are current.
  • Plan ahead overall to optimize compliance and minimize risk.

Heightened Required Minimum Distribution (RMD) Rules

  • The SECUREโ€ฏ2.0 Act has gradually increased the RMD starting age to 73 (2023) and 75 by 2033.
  • Penalties for missed RMDs have dropped from 50% to 25%, and further to 10% if corrected promptly.
  • Roth 401(k)s now mimic Roth IRAs: no lifetime RMDs beginning in 2024.

Expanded Automatic Enrollment & Part-Time Eligibility

  • Plans adopted after Decโ€ฏ29, 2022, generally must auto-enroll eligible employees at 3โ€“10%, increasing annually to at least 10%โ€“15%. Exceptions include very small or new businesses.
  • Part-time employees (500+ hours) now qualify after two consecutive yearsโ€”a reduction from the previous three-year requirement.

More Flexibility in Cryptocurrency Options

  • The Department of Labor rescinded its 2022 โ€œextreme careโ€ warning for adding crypto to plan menus. Decisions now follow standard fiduciary prudenceโ€”no extra regulatory barrier.

Streamlined Self-Correction via VFCP

  • Updated Voluntary Fiduciary Correction Program (VFCP) now allows self-correction of certain errors (like late contribution remittances or loan failures) without filing full applications, easing administrative burden.

New Funding Notice Deadlines

  • For calendar-year plans, SECUREโ€ฏ2.0-compliant funding notices must be distributed within 120 days post-year end (i.e., by April 30, 2025). Small plans have alternative deadlines.

Updated Contribution & Catch-Up Limits

  • 2025 elective deferral limit: $23,500 (up from $23,000). Age 50+ can add $7,500, and ages 60โ€“63 may contribute up to $11,250.

Learn more by calling 800.832.8514 or emailing account-services@globaladvisers.com.

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