Preparing for annual enrollment is a big task. At Portico, we’re also in prep mode, getting ready to help employers like you make thoughtful, informed decisions that not only feel right for your organization and budgetary goals, but also meet the evolving needs of employees.
Employees covered by comprehensive benefits are destined to be healthier, happier and more reliable.1
DID YOU KNOW: 64% of U.S. workers trust that their employers are making the best decisions possible about the benefits they offer.1
Retirement Plan Considerations for the Upcoming Year
If you offer retirement plan benefits through Portico, here are some important considerations to review for the 2024 plan year:
- Would you like to offer a new employer contribution or make changes to your existing employer contribution? If so, consider:
- The formula/amount
- Eligibility requirements
- Vesting schedule
- Would you like to make to make any other changes? For example, adding:
- Automatic enrollment
- Roth
More information on required Roth catch-up contribution under the SECURE 2.0 provisions will be available once guidance and information is issued by the IRS and the DOL.
For these and other topics that are top of mind, please reach out to your relationship manager at any time, but especially in advance of the upcoming annual enrollment period so we can help you efficiently make plan updates and stay on track.
Importance of timely 403(b) contributions
Timely remittance of employee contributions is considered a fiduciary responsibility and tax penalties could apply if employers fail to submit timely, generally within 2 – 3 business days depending on the size of your organization.2
Most instances of late remittances will be considered a prohibited transaction. As such, if a company is able to segregate plan employee contributions from its general assets within three business days, failure to do so in that time frame may be considered a late remittance.
Read more about the importance of timely deposits from Fidelity.
Resources
Secure Act 2.0 Legislation
Quarterly Broadridge Investment Summary
12023 Future of Benefits Report. The Hartford. Retrieved June 27, 2023 from https://s0.hfdstatic.com/sites/the_hartford/files/future-of-benefits-executive-summary-2023.pdf
2Timely remittance of employee contributions in defined contribution retirement plans. (2021, June 30). AICPA & CIMA. Retrieved July 18, 2023, from us.aicpa.org/content/dam/aicpa/interestareas/employeebenefitplanauditquality/resources/ebpaqcprimers/downloadabledocuments/timely-remittance.pdf