Retirement Regulation

The IRS announced today it will increase 401(k) contribution limits to $23,500 (from $23,000 in 2024), the same increase as last year, while limits for employees over 50 remains unchanged.

There needs to be a multi-faceted approach, spanning policy reform, organizational change, individual savings, and expanded philanthropic support, according to Just Futures' George Guerrero.

Employer payments of principal or interest on an employee's "qualified education loan" may be eligible for tax-free treatment up to the $5,250 annual maximum, as part of an employer's "educational assistance program."

"The National Strategy for Financial Inclusion" report leans heavily on the Treasury working to implement SECURE 2.0 provisions, such as Saver's Match, emergency savings programs and auto-enrollment.

New research findings raise an important question for employers: Are your retirement plans truly supporting your employees, or are they costing them more than they should?

Since President Biden's signature SAVE program is tied up in federal courts, he has issued a pause on student loan repayments for those already enrolled in the program.

Small employers are more likely to keep balances in plans indefinitely, while larger employers are more likely to roll money over to an IRA, according to a Plan Sponsor Council of America survey.

In August, the IRS provided student loan match guidance, however, the ERISA Industry Committee requests "reasonable procedures" plan sponsors can establish for employees to claim the match.