“Cycle 3” Restatement FAQs
“Cycle 3” Restatement Information In June of 2020, the IRS issued Announcement 2020-07 informing the retirement community that the deadline for employers to adopt a “restatement” of retirement plan documents will be due July 31st, 2022. Here is a list of Frequently Asked Questions to help with the understanding of the restatement period.
The SECURE Act
On December 20th, 2019 the Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law. In an effort to keep you informed of these changes, here are a few key takeaways as it relates to the retirement plan industry.
The CARES Act
On March 27th, 2020 the Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law. Here are the key takeaways on this stimulus package and how it relates to retirement plans.
New Limits | |||||
2021 | 2020 | 2019 | |||
401(k) Deferrals (Pre-Tax and Roth combined) | $19,500 | $19,500 | $19,000 | ||
Maximum Compensation | $290,00 | $285,000 | $280,000 | ||
Maximum Contributions –(Does not include Catch-Up Contributions) | $58,000 | $57,000 | $56,000 | ||
Highly Compensated Employee | $130,000 | $130,000 | $125,000 | ||
Key Employee – Officer | $185,000 | $185,000 | $180,000 | ||
Social Security Wage Base | $142,800 | $137,700 | $132,900 | ||
Medicare Wage Base | Unlimited | Unlimited | Unlimited | ||
Catch-Up Contributions(Additional 401(k) Deferrals for those 50 and over) | $6,500 | $6,500 | $6,000 | ||
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