errors is nearly limitless. And as new plan provisions are added by Congress or through the regulatory process, there are even more rules that can trip up HR departments. New Plan Provisions Create Even More Challenges In the past few years, we have seen significant new provisions in the SECURE Act (SECURE 1.0), the IRS’s proposed Required Minimum Distribution (RMD) regulations, and the SECURE 2.0 Act. Below is a partial list of new provisions for 2024 and other items that are getting increased attention: • New exceptions to the 10% early distribution penalty (e.g., for emergencies and for domestic abuse victims). • Requirement to allow long-term, part-time employees to make salary deferrals. • Changes to the cash-out rules and to providing small incentives to increase participation. HR departments are ultimately responsible for monitoring more and more changes to the retirement plan rules. Even for those service providers who deal with these rules every day, the sheer amount of information can be daunting. But for bankers — who simply want to run their businesses without unnecessary burdens — effectively administering their plans can be overwhelming. Pentegra Can Help For many HR departments, plan administration is a challenge. Inevitably, errors can arise. After all, you don’t know what you don’t know. Fiduciary oversight and a team of professionals on board help plan sponsors avoid such errors in the first place. If you would like to continue the conversation with Pentegra, please contact John Schafer, VP, national leader, Financial Institutions Channel, at john.schafer@pentegra.com or (317) 506-6875. The information, analyses and opinions set out herein are for general information only and are not intended to provide specific advice or recommendations for any individual or entity. Nothing herein constitutes or should be construed as a legal opinion or advice. You should consult your own attorney, accountant, financial or tax advisor or other planner or consultant with regard to your own situation or that of any entity which you represent or advise. As national leader of Pentegra’s Financial Institutions Sales Channel, John is responsible for Pentegra’s business development efforts to community banks and credit unions nationwide. With more than 25 years of experience built working with the financial community, John has developed a deep understanding of their needs. His unique perspective and expertise help financial institutions develop retirement plan and fiduciary outsourcing solutions designed to attract, reward and retain top talent. Prior to joining Pentegra, John was the leading sales representative for a private business. Before that, he worked in the banking industry for several years. John graduated from Purdue University in West Lafayette, Indiana, where he earned his B.A. in finance. He is also a Certified Financial Planner (CFP) and holds FINRA Series 6 & 63 licenses. DID YOU KNOW? Enjoy your association news anytime, anywhere. Scan the QR code to visit our online publication to stay up to date on the latest association news, share articles and read past issues. west-virginia-banker.thenewslinkgroup.org 25 West Virginia Banker
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