Starting this year, there’s a new rule that lets you, as a plan sponsor, match your employees’ student loan payments with contributions to their retirement plan. This means if your employees are paying off student loans, you can help them save for retirement at the same time.

As a plan sponsor, it's crucial to understand the different types of bonds that protect your retirement plan and its participants. Two common types of bonds are ERISA Bonds and Fiduciary Bonds. While they may seem similar, they serve different purposes and offer distinct protections.

Effective January 1, 2025, a new provision allows participants aged 60-63 to make additional catch-up contributions. This is an optional provision that plans must adopt as part of SECURE 2.0 to permit these extra catch-up limits.

Many defined contribution plans include something called employer matching, meaning your employer contributes a certain amount to your retirement savings plan based on your personal contribution. In 2024, individuals can contribute up to $23,000 into their 401(k) according to SEC guidelines, although, when combined with employer matching, the cap comes to $69,000 per year.

Human resource department employees handle many responsibilities, such as managing a company's health care benefits or supervising the retirement plan. It is crucial for plan sponsors, who are frequently overseeing these teams, to understand the difficulties their HR department encounters daily, and to avoid compromising their fiduciary duties to these workers. 

According to the results of a 2024 American Psychiatric Association mental health poll, 43% of adults reported higher subjective feelings of anxiety than they did the previous year. Respondents indicated feeling anxiety related to a number of issues. 

These alarming statistics underscore the critical need for employers to prioritize financial wellness programs. Check out these insights and resources regarding programs and ideas to boost morale

In late June of 2024, the IRS issued a notice providing critical guidance on early withdrawal penalty exemptions under the SECURE 2.0 Act. The law includes significant provisions for individuals experiencing domestic violence. Victims of domestic abuse can now withdraw funds from their retirement plans without incurring the usual early withdrawal penalty.

To learn more about this guidance or what information you should share with participants, read our latest blog. 

How well do you know your retirement plan? Take our quiz to find out! Learn the type of account you have, assess your investment risk, discover your employer’s match limit, and ensure you know your beneficiary. Understanding these key aspects can maximize your financial future. If you’re unsure about any answers, reach out to an Advisor or plan sponsor for guidance.