The information contained herein is not a substitute for 401k guidance. All clients are advised to consult with their own 401k plan administrators. Your reliance upon information obtained by you or through these posts is solely at your own risk. PlanSource makes no warranties or representations regarding the information herein.
Your plan is to enjoy your retirement years — and we’re here to help. Saving for your future using an employer-sponsored retirement plan is a powerful first step in making that happen.
Update - 10/24/2024
We have an update regarding recent developments to the Secure 2.0 implementation into UKG Pro. Here are some of the actions you can take to prepare for the upcoming changes introduced by the Secure 2.0 Act.
- Assess impacts — Begin to assess the impact of the changes required by SECURE 2.0 Act on your retirement plans.
- Review optional provisions — Determine which optional provisions of the SECURE 2.0 Act you may want to incorporate into your plans and address internal operational compliance for these provisions.
- Get professional counsel — Once the above assessments are completed, begin to consult with your legal counsel and/or plan administrators on the timing of plan amendments, given that the Department of the Treasury may issue additional guidance.
- Create a communications plan — Consider the timing and content of employee communications and updates needed to your summary plan descriptions.
Below are the Provisions coming with each fiscal year thus far – UKG has provided the following FAQ and documentation regarding the increased catch-up implementation. As it stands, no manual modification will be required to implement the new catch-up on existing catch-up tax categories on your 401K Deductions. Please note your deduction must have a catch-up tax category assigned in order for the limit to apply. The HCM Service Team will communicate with you as more information is received.
FAQ Higher Catch-Up Contributions
Higher Catch-Up Documentation – UKG Pro
We have an update regarding Secure 2.0 and the previously reported required provision effective in 2024. The anticipated required implementation of the Roth Catch-Up Provision, for participants earning $145,000 or greater, has been delayed.
The IRS has granted a 2-year extension to allow for an administrative transition period. The requirement must now be implemented beginning after December 31, 2025.
PlanSource will continue to monitor developments and share them as we receive them. If you are a member of the PlanSource MEP plan, our 401k team will provide additional support and details, as this requirement continues to develop. If you maintain an individual 401k plan, we recommend you work directly with your plan advisors and third-party record keepers for the most up-to-date and relevant information impacting the specifics of your plan.
