Benefit Insights: IRS Announces 2020 Limits & Safe Harbor 401(k) Plan Design & Hardship Distributions New Ruling
Here is an overview of what is included in the Fall 2019 Newsletter:
IRS Announces Limits for 2020
Every Fall, the coming year's Cost-of-Living Adjustments (COLAs) are released by the Internal Revenue Service. The benefit increases counteract the effects of inflation and keep up with the "cost of living." See the limits for 2020.
You can also access our website at anytime to see the most recent 3 years of the COLA Summary: https://www.pensiondynamics.com/irs-plan-limitations
Safe Harbor 401(k) Plan Design
Safe Harbor 401(k) Plans can eliminate a host of testing issues for traditional 401(k) Plans. If HCE contributions in your plan have resulted in corrective distributions in the past, you may consider a Safe Harbor plan in 2020. The deadline is quickly approaching, so be sure to contact us before December 1st to make 2020 plan changes.
Upcoming Compliance Deadlines
The December and January deadlines for 12/31 calendar year plans.
The Final Rule on Hardship Distributions
The IRS published the final rule regarding participant hardship distributions from defined contribution plans. Hardships get a little easier with expanded qualification rules and streamlined review process.
Select the link to read more...