The SECURE 2.0 Act, which was signed into law in late December 2022, contains many provisions that can impact employers, employees, and retirees. We covered the key provisions in a previous article, SECURE Act 2.0 – Helping Employees and Employers With Retirement Savings. Now, we are going to concentrate on how the Act affects employers including new requirements and the potential for increased administration and compliance costs. (more…)
In late December of 2022, while most of us were busy with other things, Congress was working on passing a giant omnibus budget bill. The 2023 omnibus bill was signed into law by the President on December 29, 2022. Buried within it was the Setting Every Community Up for Retirement Enhancement 2.0 Act of 2022 (SECURE 2.0). It provides new incentives for employers to offer retirement plans to their employees and for employees to participate and improve their retirement security. SECURE 2.0 helps employees and their beneficiaries, owner-employees, small businesses, and retirees, and eases costs, administrative burdens, and penalties for inadvertent mistakes. (more…)
Important changes to retirement plan tax rules are once again moving through Congress. The details are subject to revision and ultimate passage of the proposed new rules is still far from certain. Nevertheless, employers who are planning to introduce new retirement benefits or modify their existing plans should be alert to possible rule changes that could emerge over the coming months. (more…)
With unemployment at its lowest level in decades, many businesses are struggling to retain employees and fill vacancies. An attractive retirement or profit-sharing plan can help meet this challenge while also reducing a company’s tax liability. It can also help company owners accumulate wealth for their own retirement. (more…)
August 26, 2022 Update to Expand CalSavers to More Workers
Governor Newsom signed an amendment, S 1126, requiring all employers within the state of California with at least one worker to participate in the CalSavers program (reducing the minimum from five workers). The amendment is expected to take effect prior to December 31, 2025, and continues to apply to employers that do not otherwise offer a retirement plan to their employees.
May 9, 2022 Update
Action Is Required
The state-run CalSavers program was enacted in 2016 to provide employees an opportunity to build retirement savings and let employers avoid administrative fees and fiduciary responsibilities. An email outreach program launched towards the end of 2020, so many businesses have already received a notification to register for the CalSavers retirement plan program. In 2021, this requirement only applied to California employers with more than 50 employees, but effective in 2022, employers with more than 5 employees will be required to register.