Part 1: Eligible Compensation

Part 2: De Minimis Balances of Terminated Employees

Part 3: Maintaining Documentation

Part 4: Timely Remittance

Part 5: Long-Term Part-Time Employees

Part 6: Secure Act 2.0 Changes

Of Note:

The 401(k) 2024 IRS contribution limits for employees is $22,500, with a $7,500 catch-up contribution if over the age of 50.

Secure Act 2.0 Changes

Mark your calendars! Secure Act 2.0 amendments must be made by the last day of the plan year beginning on/after January 1, 2025, or January 1, 2027, for governmental plans.

Required Minimum Distributions

Beginning Jan 1, 2023 – the age requirement increases to 73.

Beginning Jan 1, 2023 – the age requirement increases to 75.

Additionally, the penalty decreases from 50% to 25% for failing to take the required minimum distributions, effective for taxable years beginning after December 29, 2022.

Catch-up Contributions

For years beginning after December 31, 2023: Catch-up Contributions must be made on a Roth basis for employees with compensation greater than $145,000.

For years beginning after December 31, 2024: for employees ages 60-63 the limit for catch-up contributions increases to $10,000 or 150% of the regular catch-up amounts for 2024.

For more on how KT can help your organization’s Employee Benefit Plan