As tax laws evolve and personal financial situations change, it's essential to stay informed about strategies that can help minimize your tax burden.

Here are several tips to consider:

Did you know 457(b) deferred compensation plans offer unique catch-up contribution options? Whether you're 50+, 60-63, or nearing retirement, there are ways to boost your savings. Learn how to take advantage of these options and secure your financial future.

Amid recent natural disasters, the SECURE 2.0 Act can offer relief to those affected through Qualified Disaster Recovery Distributions (QDRDs), allowing access to retirement funds without tax penalties. Learn more about how this provision can help.

Plaintiffs have recently filed several cases claiming the use of 401(k) plan forfeitures to reduce employer contributions, rather than to reduce participant-paid plan expenses, violates the ERISA fiduciary duty to act solely in the best interests of the plan participants. These cases highlight an ongoing legal debate about the proper use of forfeitures in 401(k) plans under ERISA, with varying outcomes depending on specific circumstances and plan terms.

On October 15, 2024, the IRS published Notice 2024-77, providing guidance toward SECURE Act 2.0 changes to the treatment of “Inadvertent Benefit Overpayments.” The notice gives plan sponsors more flexibility in addressing overpayments while maintaining compliance with tax and fiduciary rules. Read the details below.

On August 23, 2024, the IRS released a private letter ruling they found no fault with an arrangement under which a sponsor allows employees to choose to have an employer contribution allocated among four employee benefit accounts it offers. The ruling highlights a new way for employers to offer customizable benefits while maintaining tax compliance. Takeaways for Plan Sponsors can be found in our latest blog. 

The DOL issued updated guidance in September 2024 to clarify their 2021 cybersecurity recommendations apply to all employee benefit plans under ERISA, not just retirement plans but also health and welfare plans. 

All ERISA-covered plans must adopt robust cybersecurity measures to safeguard sensitive data and comply with DOL standards.

These three blogs cover important updates from the IRS affecting retirement plans and taxpayers. They discuss new guidance for 403(b) plans regarding long-term, part-time employees, clarification on student loan matching contributions in various retirement plans, and disaster relief measures providing extended deadlines for tax filings and payments in affected areas.