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New 401(k) Rules: Balancing Access and Savings
Team SummitEmployee Outcomes, Employer Resource Center, Fiduciary Governance, Plan Operations & AdminComments are off for this post
When considering short-term funding options, participants are often advised to avoid tapping into their 401(k) accounts through loans or hardship withdrawals, as early withdrawals can impede long-term retirement savings. However, the SECURE 2.0 Act of 2022 has introduced more penalty-free emergency withdrawal provisions, offering increased liquidity and flexibility within 401(k) plans. While some see this  Read More →
Surging Credit Card Debt: Strategies for Employers to Help Bolster Retirement Readiness
Team SummitEmployee Outcomes, Employer Resource CenterComments are off for this post
With U.S. credit card debt recently soaring to a record high of $1.08 trillion, employers face a pivotal moment. This staggering amount, a $48 billion escalation since the second quarter and a $154 billion increase year-over-year, is a cautionary signal for Americans’ financial stability. The compounding pressures of post-pandemic recovery and inflation have pushed household  Read More →
When Does a Participant Loan Become a Deemed Distribution?
Team SummitEmployee Outcomes, Employer Resource Center, Fiduciary Governance, Plan Operations & AdminComments are off for this post
For plans that offer loans, there is oftentimes confusion around when a participant loan will default, and even more so around when that loan would be considered a distribution for tax-reporting purposes. A recent IRS Issue Snapshot affirms that a participant loan is a legally enforceable agreement and terms of the loan agreement must comply  Read More →

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