IRS Finalizes Rules for Hardship Withdrawals

Earlier this year, we provided you information regarding the proposed regulations issued by the Internal Revenue Service (“IRS”) relating to hardship distributions from 401(k) plans. Those proposed regulations reflected recent statutory changes, including changes made by the Bipartisan Budget Act of 2018 and the Tax Cuts and Jobs Act of 2017. The IRS has recently finalized the regulations. In April...

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2019 Contribution Limit Information

Source: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-contributions Represents the additional contribution limit for participants who are age 50 and older, once other contribution limits, such as 401(k) plan elective deferral contribution limit, the ADP testing limit or the annual additions limit, have been met. If the ADP test is failed, a portion of a Highly Compensated Employee’s (an “HCE’s”) elective deferrals may, under certain circumstances,...

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Annual Compliance Testing

January begins annual testing for 401(k) plans to ensure that they are in compliance with important Internal Revenue Code requirements. You should have received an email from abaretirement@phmurphyandcompany.com on or about January 10, 2019, asking if you would like to take advantage of compliance services offered by the ABA Retirement Funds Program’s (“the Program”) compliance services, including nondiscrimination testing and employer...

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Contribution and Other Limits for 2018

Represents the additional contribution limit for participants who are age 50 and older, once other contribution limits, such as 401(k) plan elective deferral contribution limit, the ADP testing limit or the annual additions limit, have been met. If the ADP test is failed, a portion of HCEs’ elective deferrals may, under certain circumstances, be treated as catch-up contributions. ...

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