01/16/2024
SECURE 2.0 allows you to offer to enroll or to auto-enroll non-highly compensated employees into pension-linked emergency savings accounts, beginning with the 2024 plan year—Jan. 1, 2024—for calendar-year plans. Working relatively speedily, the IRS released initial guidance on PLESAs last Friday, before the long holiday weekend. More comprehensive guidance will follow.
01/04/2024
Right before our Christmas break, the IRS issued guidance on SECURE 2.0’s provision allowing you to provide de minimis financial incentives to employees to induce them to participate in your 401(k) plan. Since this provision became effective with the 2023 plan year, and considering that financial incentives are fully taxable for payroll purposes, we rushed out our analysis so you’d have time to deal with it in December. But the guidance contains much more.