Author Archives:
Erin Carter

The Corporate Transparency Act (CTA) passed in 2021 includes several provisions designed to prevent illegal activities such as money laundering and tax evasion. A key component of the legislation is the requirement for businesses to file Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN). The reporting opened January 1, 2024, but has experienced several delays due to ongoing litigation. The culmination has been a delay in the reporting requirement since mid-January.

The Voluntary Fiduciary Correction Program (VFCP) is overseen by the Employee Benefits Security Administration (EBSA) of the U.S. Department of Labor. Through the VFCP, plan fiduciaries are encouraged to voluntary report and correct violations according to the Employee Retirement Income Security Act (ERISA). With this voluntary compliance process, fiduciaries have a structured way they can self-correct violations and better adhere to ERISA regulations. If there is a loss due to a fiduciary breach, for example, this self-reporting technique can ensure that they are restored to the plan in a way that protects plan participants and beneficiaries. Self-reporting also frees up resources for the Department of Labor to focus on violations that are more serious.

Earlier this month, the IRS issued IR-2025-07 which contains proposed regulations impacting catch up contribution rules. Specifically, there is important information on how the new Roth Catch Up Contribution Rule should be applied. It includes detailed information on the determination of wage threshold, FICA wages, definition of employer sponsor, and available correction methods.

Millions of Americans leave behind retirement accounts every year due to job changes, incomplete records, or failing to roll over funds. An estimated 29.2 million forgotten 401(k) accounts hold approximately $1.65 trillion in assets. In response to this growing issue, the Department of Labor (DOL) created the Retirement Savings Lost and Found (RSLF) database under the SECURE 2.0 Act of 2022. 

On December 3, 2024, a federal court temporarily blocked enforcement of the Corporate Transparency Act (CTA), which requires most U.S. businesses to file Beneficial Ownership Information (BOI) reports. For now, businesses do not need to file, but this could change quickly. The Department of Justice (DOJ) is appealing against the decision, and the Fifth Circuit Court of Appeals is expected to rule by December 20th. If enforcement is reinstated, businesses will face the January 1, 2025, deadline with little time to act.

On October 3, 2024, the Financial Crimes Enforcement Network (FinCEN) released updated Frequently Asked Questions (FAQs) regarding the Beneficial Ownership Information (BOI) Reporting rule. These updates address key aspects of the Corporate Transparency Act (CTA) to provide clearer guidance to reporting entities.

The IRS recently issued Notice 2024-73, providing updated guidance for 403(b) retirement plans regarding the inclusion of long-term, part-time employees. A 403(b) plan is a retirement savings plan typically offered to employees of public schools, tax-exempt organizations, and certain religious institutions. Effective for plan years beginning after December 31, 2024, this guidance requires plan sponsors to expand plan eligibility to include long-term, part-time employees who meet specific criteria. These changes stem from the SECURE 2.0 Act, which introduced reforms aimed at enhancing retirement security for Americans, including part-time workers.

For years hardship distributions have helped participants deal with unexpected downturns that present serious financial challenges.  While these distributions have been available for several years, the SECURE Act 2.0 made important changes that streamline the administration process by allowing plan sponsors to accept participant self-certification. The change reduces the amount of paperwork and compliance hurdles for plan administrators.

The SECURE 2.0 Act of 2022 introduced several updates to retirement savings plans, including a new provision (Section 109) that allows employees ages 60 to 63 to make higher catch-up contributions starting in 2025. This change is designed to help individuals boost retirement savings during the critical final years leading up to retirement.

The SECURE 2.0 Act of 2022 has introduced important changes to retirement plans, particularly for long-term part-time (LTPT) employees. These changes will impact how companies manage retirement benefits, making it essential for plan sponsors to understand and implement the new requirements. With the 2025 deadline approaching, plan sponsors must take action now to ensure compliance and optimize their retirement plans.