Retirement Plan Consultants Launches App for Plan Participants

Partner Code: RPC

At Retirement Plan Consultants, we’re always working to help our retirement plan participants manage their accounts. That’s why we’re so pleased to now offer our new Planlink Mobile App with easy account access and many great features for plan participants. The app is available for participant accounts only, plan sponsors are not able to login on the app.

Features for plan participants include –

          ◆    Access your account from anywhere and with touch/face ID for secure authentication

          ◆    Enroll in your retirement plan in 5 minutes or less

          ◆    Easily manage your investment portfolio

          ◆    Change your future contribution rates

          ◆    Request a loan, rollover, or lump sum cash withdrawal (if available)

We believe that Planlink will help you enjoy your experience with Retirement Plan Consultants even more. Download our app directly from the App Store or Google Play today! For questions regarding Planlink, please contact our customer service team.


RPC is Leading the Industry in Customer Service

Retirement Plan Consultants (RPC) is not just retirement planning. Our company goes the extra mile to ensure that participants, plan sponsors and financial advisors receive quality customer service. According to ArenaCX, statics show that 69% of customers have stopped doing business with a brand due to negative customer service experiences. Whether you have questions about a specific service or about your current plan, we have the answers.

Real people, not robots

At RPC, we take pride in our exceptional client service team, ready to assist you during business hours with any inquiries you may have. Our single point of contact approach revolutionizes the retirement planning experience, ensuring that you receive prompt and efficient support. On average, our clients experience an impressive wait time of just 25 seconds when reaching out to our service team, while our competitors’ clients often endure 5 minutes or more before connecting with a representative. We value your time and strive to deliver unparalleled responsiveness.

We believe in empowering our plan sponsors and participants with comprehensive knowledge about their retirement plans. That’s why we offer a range of tools and educational resources designed to facilitate understanding, including enrollment assistance. Step-by-step videos are readily available to guide plan participants and sponsors through the enrollment process, providing clarity and confidence. Furthermore, our dedicated client service team is always available to address any additional questions you may have, ensuring a smooth and seamless experience.

In addition, our resource centers serve as valuable hubs of information. Here, you’ll find an array of tools to support your retirement planning journey, including retirement planning calculators, an investment term glossary, and comprehensive website guides. These resource centers are dedicated to equipping both plan sponsors and participants with the necessary resources to make informed decisions and achieve their retirement goals. Explore the plan sponsor and participant resource center today and unlock a wealth of valuable information.

Our Client Service Team

Check out the friendly faces on our client service team!

Meet our client service team at Retirement Plan Consultants

Services that offer solutions

Communication can often be a challenging and time-consuming aspect when working with TPAs or Recordkeepers for advisors and plan sponsors. At RPC, we simplify this process by acting as a comprehensive solution that serves clients as recordkeepers, TPA partners, advisor partners, and independent fiduciaries. By consolidating these roles, we streamline communication channels, saving you valuable time and effort while ensuring a seamless experience.

In the realm of retirement plans, compliance is of utmost importance. We recognize the significance of adhering to regulatory requirements and maintaining the highest standards. That’s why our in-house fiduciary partners, Wealth Management, play a vital role in ensuring all compliance obligations are met. They work closely with companies to navigate the intricate landscape of regulations, while also managing investments in a manner that prioritizes the best interests of our clients. With RPC, you can have peace of mind knowing that your retirement plans are in capable hands, guided by a dedicated team that upholds compliance at every step.

By entrusting RPC as your comprehensive solution, you gain the advantage of streamlined communication, consolidated services, and a dedicated team of fiduciary experts. Together, we navigate the complexities of compliance, ensuring that your retirement plans not only meet regulatory standards but also align with the best interests of your clients.

At Retirement Plan Consultants, we are committed to delivering outstanding customer service, empowering you with the tools and resources you need to navigate your retirement plans with confidence. Experience the RPC advantage and join the ranks of satisfied clients who benefit from our exceptional single point of contact approach and access to valuable educational resources. For more information, contact our sales team here.

Qualified Third-Party Administrators for 401(k) Plans

Retirement Plan Consultants (RPC) offers qualified third-party administration for 401(k) plans to provide expertise on plan compliance, design, and consulting. For a streamlined process, RPC also bundles third-party administration with other services such as recordkeeping and fiduciary services.  As a financial advisor, recommending bundled retirement plan services showcases your commitment to providing comprehensive retirement planning solutions and positions you as a trusted partner in your clients’ financial journeys.

The Roles of Third-Party Administrators in 401(k) Plans

Third-party administrators (TPAs) maximize retirement plans while using personized guidance to create custom plans. Our consultants work in conjunction with financial advisors to ensure the company’s 401(k) plan complies with all legal requirements including document preparation, benefit statement generation, and preparing annual nondiscrimination testing.

Here are a few reasons why it’s crucial to hire a qualified third-party administrator:

  1. Expertise and Specialization: Third-party administrators possess an in-depth understanding of complex retirement plan rules, regulations, and compliance requirements. By partnering with a TPA, you gain access to their extensive expertise, ensuring your clients’ retirement plans remain compliant with ever-evolving legal and regulatory obligations. TPAs offer valuable insights, keeping you aware of changes and helping you make informed decisions for your clients’ benefit.
  2. Compliance and Risk Management: Retirement plan compliance is a significant concern, as non-compliance can lead to severe penalties and legal ramifications. TPAs specialize in navigating complex regulations and ensuring adherence to applicable laws such as ERISA (Employee Retirement Income Security Act). They conduct regular plan audits, maintain proper documentation, and handle required reporting to mitigate risks. By engaging a TPA, you offer your clients peace of mind, knowing their retirement plans are managed with diligence and compliance at the forefront.
  3. Streamlined Operations: By selecting a bundled TPA, you gain access to a one-stop solution for retirement plan administration. These TPAs provide an integrated suite of services, including recordkeeping, compliance monitoring, investment management, and participant support. Having all these functions under one roof simplifies operations for both you and your clients, eliminating the need for multiple vendors and streamlining the management of the retirement plan.
  4. Fiduciary Support: As a financial advisor, acting as a fiduciary is a crucial aspect of your role. Partnering with a bundled TPA can provide valuable fiduciary support to help you meet your obligations. Many bundled TPAs offer fiduciary services, including investment selection, monitoring, and documentation. This assistance helps ensure that the retirement plan remains in compliance with regulatory requirements, alleviating some of the fiduciary responsibilities from your shoulders.
  5. Customization and Plan Design: TPAs work closely with financial advisors to design retirement plans tailored to individual circumstances and goals. Whether it’s selecting the most suitable investment options, creating profit-sharing components, or structuring plan contributions, TPAs bring flexibility and customization to the table. This personalized approach enhances your clients’ retirement experience and strengthens their trust in your advisory services.

By consolidating services under one provider, advisors benefit from streamlined operations, enhanced efficiency, cost savings, and fiduciary support. Clients, on the other hand, experience the convenience of having all retirement plan services in one place, as well as the advantages of customized plan design. Collaborating with Retirement Plan Consultants allows you to focus on your core competencies while ensuring that clients’ retirement goals are met with efficiency, accuracy, and compliance. Embracing bundled TPAs not only simplifies your advisory practice but also enhances the value and effectiveness of your clients’ retirement plans.

Contact us today to get working with a qualified third-party administrator for your 401(k) plan!


Investments provided through Wealth Management Nebraska LLC, Registered Investment Advisor.

This material is derived from sources believed to be reliable, but its accuracy and the opinions based thereon are not assured.

The articles and opinions in this publication are for general information only and are not intended to serve as specific financial, accounting or tax advice.

Safe Harbor 401(k) Retirement Plan for Employers

What is a Safe Harbor 401(k) Plan?

A safe harbor 401(k) plan is a popular retirement plan for small businesses. To qualify as a safe harbor 401(k), there are two requirements: a mandatory contribution and participant notices. By fulfilling these two requirements, the plan can automatically pass annual nondiscrimination testing. This flexible plan is an attractive type of 401(k) used by small businesses today because it allows owners to contribute up to IRS limits with no concerns of receiving refunds of their contributions if there were to be testing problems.

There are many reasons companies are switching to a safe harbor 401(k) plan, including failure of previous nondiscrimination or compliance tests, wanting to contribute more without risk of nondiscrimination testing failure, or a company is required to make contributions to keep plans compliant.

Benefits of Safe Harbor 401(k) Plans

Safe harbor 401(k) plans automatically pass key nondiscrimination tests by fulfilling basic requirements.

For small companies with top heavy 401(k) plans, a safe harbor plan may be best suited, as safe harbor 401(k) plans normally automatically pass the top-heavy testing. A top heavy 401(k) plan is a plan where the “key-employees” own more than 60% of the value of the plan assets. (please note – there are a few exceptions to the automatic test pass rule)

Safe harbor 401(k) plans are designed to have a fixed and mandatory contribution and, in most cases, required to be immediately 100% vested, but the employer does have a range of options within a safe harbor plan.

The required employer contributions offer a generous retirement benefit to employees – which may aid in recruiting and retaining of employees.

Thinking About Starting a Safe Harbor 401(k)? The SECURE 2.0 Act Added Additional Benefits for a Variety of Retirement Plans – Including Safe Harbor 401(k) Plans

Companies may be able to benefit from small business tax credits. The SECURE 2.0 Act has modified tax credits for small businesses with up to 50 employees. Employees may be eligible for a tax credit to cover 100% of plan start-up costs for a workplace plan (up from 50%) capped annually at $5,000 per employer (which remains unchanged) for each of the first three years. Eligible businesses with 51 to 100 employees are still subject to the original SECURE Act’s tax credits equal to 50% of administrative costs, capped annually at $5,000 per employer for three years. Small businesses may also claim an additional $500 tax credit per year for a three-year period by adding an automatic enrollment feature to either a new or existing 401(k) plan. In total, this could save $16,500 over three years.

Types of Safe Harbor 401(k) Plans

Safe harbor match – With a basic safe harbor match, a company will match 100% of contributions up to 3% of the employee’s annual compensation, plus 50% on the next 2%. Employees would have to contribute 5% to receive a 4% match. With an enhanced safe harbor match, typically an employer will match 100% of contributions on 4% of an employee’s annual compensation but cannot exceed 6% total.

Non-elective safe harbor – With this plan, all eligible employees will receive a 3%, or more, employer non-elective contribution, regardless of whether the employees make salary deferral contributions to the plan.

QACA safe harbor (Qualified automatic contribution arrangement) – With a QACA safe harbor match, employers match 100% of the first 1% of compensation, plus 50% on the next 5% of compensation (3.5% total). With a QACA safe harbor non-elective, it is the same as a traditional non-elective safe harbor, employees receive at least a 3% employer non-elective contribution. The unique feature with a QACA safe harbor match or non-elective is that you are allowed to have a vesting schedule.

All safe harbor 401(k) plans, regardless of type, are set up for companies to commit to for one year with strict deadlines. There are certain changes that are permitted to the plan mid-year. Employees can contribute up to $22,500 (or $30,000 if they are 50 or older) from their salary per year.

Find Out More About Safe Harbor 401(k) Plans

Choosing the best plan for a business comes down to the retirement plan goals, how much the plan sponsor wants to save and whether the plan is being set up specifically to attract and retain employees. Retirement Plan Consultants (RPC) is an established retirement plan provider that offers safe harbor 401(k) plans for small businesses. Our sales team is available to put together a customized plan for companies. Contact us to maximize tax savings by offering a safe harbor 401(k) plan.

Profit-Sharing Benefits Employees and Employers

Whether you’re a non-profit organization or small business, there’s opportunity to offer profit-sharing plans to employees, even if you already offer another type of retirement plan. A profit-sharing retirement plan is a plan designed to give employees a share in their company’s profit based on earnings.

This plan is available to all sizes of companies and flexible in design. One of the most notable features of a profit-sharing plan is the ability to have varying contribution amounts to the plan each year. Having flexibility in contribution amounts makes profit sharing an attractive option for businesses whose cash flow may not be consistent year-to-year.

Profit-sharing retirement plans offer several benefits to an employer with minimal restrictions; however, the IRS does require profit-sharing plans to have a set formula that will determine how the contributions are divided between each employees’ accounts.

Participation, Contributions and Vesting

Profit-sharing plan participation:
In general, a plan must be offered to all employees. There are a few exceptions to this requirement such as being under 21 years of age, time-worked, etc.

Profit-sharing contribution rules and limits:
A company doesn’t have to be profitable to offer (and contribute) to a profit-sharing plan. Typically, a plan will base contributions on profit, but that doesn’t have to be the case due to the minimal contribution restrictions. For most plans, contributions are made by the employer. The plan would need to include a 401(k) cash or salary deferral feature to allow for employee contributions.

The per-participant annual employer contribution limit is the lesser of:

               -100% of participants compensation, or

               – $66,000 for 2023 ($61,000 for 2022; $58,000 for 2021)

Profit-sharing vesting options:
Lastly, an employer can choose for funds contributed to employees to be vested over a period of time (according to a vesting schedule), or funds maybe be fully vested immediately. If there is a 2-year waiting period to participate in a company profit-sharing plan, funds will be fully vested at the time of contribution.

Benefits of Profit-Sharing Plans for Employers (and the Cons)

Substantial tax benefits
If an employer contributes to a profit-sharing plan, they can deduct 25% of the compensation paid during the taxable year to all participants.

Aid in employee recruitment and retention – It’s an attractive benefit that current and prospective employees may appreciate – especially if offered in conjunction with a regular 401(k) plan. Profit-sharing provides an avenue for an employer to make larger contributions to an employee’s retirement plan, helping the employee build savings for their future.

Plan design is flexible – Contributions can be changed year-to-year if needed based on business income.

Form 5500 requirement
– Employer will need to file a Form 5500 annually.

Summary Plan Description (SPD) requirement – A SPD explains the plan and participants rights and responsibilities. When a participant enrolls in the plan, the SPD must be given to the participant. The SPD must also be given out periodically while the company has an active plan profit-sharing plan.

Discrimination testing – Required to ensure HCEs are not being favored.

Cost – Profit-sharing plans increase compliance workload which can lead to heightened administrative costs. For some businesses, the tax-savings outweighs the administrative costs and makes profit-sharing the wise choice.

Retirement Plan Consultants can create a plan cost comparison to show how profit-sharing may benefit a business. Click here to request a proposal.

Benefits of Profit-Sharing Plans for Employees (and the Cons)

Not part of taxable income
– Profit-sharing contributions added to retirement accounts do not increase taxable income.

Can still contribute to another retirement plan – The employer contributions do not count towards an individual’s 401(k) contribution limit.

Higher employer contribution limits – Plans have higher employer contributing limits compared to traditional retirement plans, allowing for the potential to put more money in employees’ pockets.


Employer may choose not to contribute – An employer is not required to contribute anything. If the only plan offered to an employee is a profit-sharing plan, it may be wise move to open another account to save for retirement.

Types of Plans

  • Stand-alone plans that only have employer profit-sharing contributions
  • Plans that are combined with, and part of, a 401(k) plan, to allow for employee contributions

Since a profit-sharing plan is a qualified retirement plan, it must comply with the ERISA rules, whether stand-alone or combined with another plan. Your retirement plan provider can walk you through the plan design discretions, set parameters and provide service to ensure the plans follow compliance.

Before a company can offer a profit-sharing plan, there are a few items to consider:

  • Hire Retirement Plan Consultants to help set up the plan
  • Decide what features the plan will offer
  • Notify eligible employees and provide information for decision-making
  • Set up a trust for the plan or set up plan with insurance contracts
  • Confirm recordkeeping services with Retirement Plan Consultants
  • Decide on annual employee contributions
  • Gain understanding of companies fiduciary responsibilities (RPC can help with this!)
  • Adopt a plan to monitor the plan’s service providers
  • Finally, gain understanding of the reporting and disclosure requirements of the profit-sharing plan

Set up a 401(k) with a Profit-Sharing Plan Now

Retirement Plan Consultants (RPC) is ready to help set up a profit-sharing retirement plan or incorporate a profit-sharing feature into an existing plan. The current timing is ideal for establishing a profit-sharing 401(k) as the SECURE 2.0 Act provides added benefits in addition to the usual tax savings of a profit-sharing plan. To initiate a profit-sharing retirement plan, contact the experts at Retirement Plan Consultants today!

Be Aware of Fraudulent IRS Communications

In today’s digital age, scams and fraud have become increasingly prevalent, affecting individuals, businesses, and government agencies. One of the most common forms of fraud involves impersonating the Internal Revenue Service (IRS) to deceive taxpayers. To protect ourselves and our communities from falling victim to such schemes, it is essential to be aware of fraudulent IRS communications via phone, email, text messages, or social media.

Here is a hypothetical scenario of fraudulent communications:

Paula received a voicemail from an IRS employee asking for a call back on a toll-free number. She is current on her tax filing requirements and doesn’t owe any back taxes. So, she’s confused about why the IRS would contact her.

Paula is justified in being concerned. The IRS does not initiate contact with taxpayers by phone, email, text messages, or social media channels. Official IRS correspondence is sent through the US Postal Service. The letter provides detailed information regarding tax issues such as notices about discrepancies, bills for unpaid taxes, or requests for additional information.

Sometimes, the IRS may call taxpayers, but this is not common and usually follows an initial letter. During these calls, representatives never demand immediate payment or ask for credit card information over the phone.

Paula should call the IRS directly at 1-800-829-1040, not on the number left in the voicemail.

If you are experiencing tax scams, please report them to the IRS immediately. Click here for the contact information.

Client Profile is based on a hypothetical situation. The solutions discussed may or may not be appropriate for you.


SECURE Act 2.0 For Businesses

Building on the 2019 SECURE ACT, the 2022 Securing a Strong Retirement Act (commonly referred to as SECURE 2.0) was passed to help boost savings in workplace plans, extend support to small businesses that want to help employees prepare for retirement, and increase tax incentives for small businesses. Here are some of the corporate highlights.


SECURE 2.0 increases the startup credit to cover 100% (up from 50%) of administrative costs up to $5,000 for the first three years of plans established by employers with up to 50 employees. It also clarifies that small businesses joining a multiple employer plan (MEP) are eligible for the credit.


Beginning in 2025, 401(k) and 403(b) plans will be required to automatically enroll eligible participants, though employees may opt out of coverage. There is an exception for small businesses with ten or fewer employees and new companies less than three years old. The expansion of automatic enrollment will help more workers save for retirement, particularly younger, lower-paid workers.


Next year, employers who do not already offer retirement plans will be permitted to provide a starter 401(k) plan, or safe harbor 403(b) plan to employees who meet age and service requirements. Through the starter plans, the limit on annual deferrals would be the same as the IRA contribution limit, and employers may not make matching or nonelective contributions to starter plans.


Starting in 2025, employers will be required to allow part-time employees (workers with over 500 hours per year for two consecutive years) to participate in their retirement plan after two years of service. Employees with over 1,000 hours of service must be included after one year of service.

SECURE 2.0 also made numerous changes to how company retirement plans operate. You’ll need to understand how these changes will impact your business—especially if you want to include a retirement plan in your employee benefits package.


Retiring in a Slowing Economy

February 2023

A well-thought-out plan for a comfortable retirement is important, even more so in a tough economy.


Start by looking at your spending habits for the last three years and determine if it’s sustainable for the next 20 years. Keeping in mind that most retirees take on a new hobby or activity that usually costs money. Travel, large home improvements, or restoring a classic car can cost thousands of dollars and stress your financial plan.


Plan to keep your portfolio diversified, and don’t try to time the market. Selling investments because they are down means you could miss out on a recovery. Stripping emotions out of financial decisions is vital but not always easy. If you’re not confident doing this on your own, work with your financial professional for guidance.


Spending in retirement requires flexibility. You may need to reduce your withdrawals when the market is slowing, but you can increase them when it recovers. Be sure to notice the warning signs of a slowing market, like rising interest rates and higher inflation.


How the Secure 2.0 Act Will Impact Retirement Plans in 2023

Legislative Highlights

On December 29, 2022, the Consolidated Appropriations Act of 2023 was signed into law which included the highly anticipated Securing a Strong Retirement Act (SECURE 2.0). This Act brings major changes to the U.S. Retirement System and builds upon the enhancements that were implemented under the SECURE Act of 2019.

This legislation includes over 90 provisions taken primarily from three House and Senate Bills – (1) the Securing a Strong Retirement Act, (2) the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg (Rise & Shine Act) and (3) the Enhancing American Retirement Now (EARN Act).

The provisions included in this legislation will take effect in varying years. This staggered approach gives plan sponsors and service providers more time to understand and implement these changes to their plans and recordkeeping systems.

The following is a high-level summary of selected provisions that are effective in 2023:

Modification of credit for small employer pension plan startup costs – Favorable changes have been made to increase tax credits for many employers establishing new plans.

The startup credit will be increased from 50% to 100% for employers with up to 50 employees. The existing annual cap of $5,000 per year will be retained.

An additional credit is also available for employer contributions made to newly established defined contribution plans.

  • For employers with up to 50 employees, the credit is 100% of the employer contributions made to each eligible employee (earning less than $100,000), limited to $1,000 per employee.
  • For employers with 51-100 employees, the credit is reduced by 2% for each employee in excess of 50 employees, limited to $1,000 per employee.
  • The credit amount in all cases is phased out over time as follows:
  • Years 0-1: 100% credit
  • Year 2: 75% credit
  • Year 3: 50% credit
  • Year 4: 25% credit
  • Year 5 or later: 0% credit

The above credits are available to employers that merge into another plan as a part of a Multiple Employer Plan (MEP).

These tax credits are available in lieu of tax deductions, which in some cases may be more valuable

Effective for taxable years beginning after December 31, 2022. Applicable plans: 401(a) plans

Pooled employer plan contribution collection procedures – A pooled employer plan (PEP) may designate a named fiduciary (other than a participating employer) to collect contributions to the plan. The fiduciary would be required to implement written contribution collection procedures that are reasonable, diligent and systematic.
Effective for plan years beginning after December 31, 2022.
Applicable plans: 401(k) and 403(b) plans

Multiple employer 403(b) plans – 403(b) plans are now allowed to participate in multiple employer plans (MEP) and PEPs and will be subject to the same reporting requirements of traditional MEPs and PEPs. Additionally, this includes relief from the “one bad apple rule” so that the violations of one employer do not affect the tax treatment of employees of compliant employers.
Effective for plan years beginning after December 31, 2022.
Applicable plans: 403(b) plans

Raising the age for Required Minimum Distributions (RMDs) – The SECURE Act of 2019 increased the required minimum distribution age to 72. The new legislation will expand on this recent change and once again increase the RMD age.
o Age 73 starting on January 1, 2023
o Age 75 starting on January 1, 2033.
Effective for distributions made after December 31, 2022.
Applicable plans: 401(a), 401(k), 403(b), and 457(b) plans and traditional IRAs

Military spouse retirement plan eligibility credit for small employers – This provides small employers a tax credit with respect to their defined contribution plans if they (1) make military spouses immediately eligible for plan participation within two months of hire, (2) upon plan eligibility, make the military spouse eligible for any matching or nonelective contribution that they would have been eligible for otherwise at 2 years of service, and (3) make the military spouse 100% immediately vested in all employer contributions.

The tax credit equals the sum of (1) $200 per military spouse, and (2) 100% of all employer contributions (up to $300) made on behalf of the military spouse, for a maximum tax credit of $500. This credit applies for 3 years with respect to each military spouse. (This does not apply to highly compensated employees.) An employer may rely on an employee’s certification that such employee’s spouse is a member of the uniformed services.

Effective for taxable years beginning after the date of enactment of this Act, December 29, 2022.
Applicable plans: 401(a) plans

Small immediate financial incentives for contributing to a plan – Under current law, employers may provide matching contributions as a long-term incentive for employees to contribute to a 401(k) plan. However, immediate financial incentives (e.g., gift cards in small amounts) are prohibited even though individuals may be especially motivated by them to join their employers’ retirement plans. Employers would now be able to offer de minimis financial incentives, not paid for with plan assets, such as low-dollar gift cards, to boost employee participation in workplace retirement plans by exempting de minimis financial incentives from section 401(k)(4)(A) and from the corresponding rule under section 403(b).
Effective for plan years beginning after the date of enactment of this Act, December 29, 2022.
Applicable plans: 401(k) and 403(b) plans

Reduction in excise tax – The penalty for failure to take required minimum distributions (RMDs) will be reduced from 50% to 25%. Further, if a failure to take an RMD from an IRA is corrected in a timely manner, the excise tax on the failure is further reduced from 25% to 10%.
Effective for taxable years beginning after the date of enactment of this Act, December 29, 2022.
Applicable plans: 401(a), 401(k), 403(b), and 457(b) plans and traditional and Roth IRAs

Recovery of retirement plan overpayments – Plan fiduciaries will have discretion over whether to recoup overpayments that were mistakenly made to retirees. If plan fiduciaries choose to recoup overpayments, certain limitations and protections apply. Rollovers of the overpayments also remain valid.
Effective as of the date of enactment of this Act, December 29, 2022.
Applicable plans: 401(a), 401(k) and 403(b) plans

One-time election for qualified charitable distribution to split – interest entity and increase in qualified charitable distribution limitation – The IRA charitable distribution provision will allow for a one-time $50,000 distribution to charities through charitable gift annuities, charitable remainder unitrusts, and charitable remainder annuity trusts. The annual IRA charitable distribution limit of $100,000 will also be indexed for inflation.
Effective for distributions made in taxable years beginning after the date of enactment of this Act, December 29, 2022.

Distribution to firefighters – Under current law, if an employee terminates employment after age 55 and takes a distribution from a retirement plan, the 10% early distribution tax does not apply. However, there is a special rule for “qualified public safety employees” in governmental plans, under which age 50 is substituted for age 55 for purposes of this exception from the 10% tax. This exemption applies to public sector firefighters, but not private sector firefighters. The age 50 rule is now extended to private sector firefighters.
Effective for distributions made after the date of enactment of this Act, December 29, 2022.
Applicable plans: 401(a), 401(k) and 403(b) plans (457(b) governmental plans are not subject to the tax).

Repayment of qualified birth or adoption distribution limited to 3 years – A participant who has taken a QBAD (a qualified birth or adoption distribution) may repay that distribution to an eligible retirement plan accepting rollovers during the three-year period beginning on the day after the date on which the QBAD was received.
Effective to distributions made after the date of the enactment of this Act (December 29, 2022) and retroactively to the 3-year period beginning on the day after the date on which such distribution was received.
Applicable plans: 401(a) defined contribution plans, 401(k), 403(b), and governmental 457(b) plans and traditional IRAs

Retroactive first year elective deferrals for sole proprietors – Plans sponsored by sole proprietors or single member LLCs, are now allowed to receive employee contributions up to the date of the employee’s tax return filing date for the initial year.
Effective for plan years beginning after the date of enactment of this Act, December 29, 2022.
Applicable plans: 401(k) plans

Employer may rely on an employee certifying that deemed hardship distribution conditions are met – Under certain circumstances, employees are permitted to self-certify that they have had an event that constitutes a hardship for purposes of taking a hardship withdrawal.
Effective for plan years beginning after December 29, 2022.
Applicable plans: 401(k) and 403(b) plans (hardship withdrawals); governmental 457(b) plans (unforeseeable emergency withdrawals)

Eliminating unnecessary plan requirements related to unenrolled participants – Employers will no longer be required to provide certain intermittent ERISA or Code notices to unenrolled participants who have not elected to participate in a workplace retirement plan. However, to further encourage participation of unenrolled participants, the plan is required to send (1) an annual reminder notice of the participant’s eligibility to participate in the plan and any applicable election deadlines, and (2) any otherwise required document requested at any time by the participant. This rule applies only with respect to an unenrolled participant who received the summary plan description, in connection with initial eligibility under the plan, and any other notices related to eligibility under the plan required to be furnished.
Effective for plan years beginning after December 31, 2022.
Applicable plans: 401(a), 401(k) and 403(b) plans

Elimination of additional tax on corrective distributions of excess IRA contributions – Current law requires a corrective distribution of an excess contribution to an IRA, along with any earnings on the excess contribution. The distribution is subject to the 10% early withdrawal penalty. The new legislation exempts corrective distributions and corresponding earnings from the 10% early withdrawal penalty.
Effective for any determination of, or affecting, liability for taxes, interest or penalties that is made on or after the date of enactment, December 29, 2022.

Distributions to terminally ill participants – Secure 2.0 eliminates the 10% early distribution tax for terminally ill participants. A Physician must certify the participant has a terminal illness reasonably expected to result in death in 7 years. The participant may repay the distribution within 3 years.
Effective for distributions made after the date of enactment of this Act, December 29, 2022.
Applicable plans: 401(a), 401(k) and 403(b) plans

Special rules for use of retirement funds in connection with qualified federally declared disasters – Permanent rules are now provided relating to the use of retirement funds in the case of a federally declared disaster. The permanent rules allow up to $22,000 to be distributed from employer retirement plans or IRAs for affected individuals. Such distributions are not subject to the 10% additional tax and are taken into account as gross income over 3 years. Distributions can be repaid to a tax preferred retirement account. Additionally, amounts distributed prior to the disaster to purchase a home can be recontributed, and an employer is permitted to provide for a larger amount to be borrowed from a plan by affected individuals and for additional time for repayment of plan loans owed by affected individuals.
Effective for disasters occurring on or after January 26, 2021.
Applicable plans: 401(a), 401(k), 403(b), or governmental 457(b) plan or a traditional IRA

Recognition of tribal government domestic relations orders – Tribal courts are added to the list of courts authorized under federal law to issue qualified domestic relations
Effective to domestic relations orders received by plan administrators after December 31, 2022, including any such order which is submitted for reconsideration after such date.

Cash balance interest crediting rate – For cash balance plans that credit a variable rate of interest, the plan sponsor can assume an interest credit that is a “reasonable” rate of return, provided it does not exceed 6%. This clarification will allow plan sponsors to provide larger pay credits for older and long-tenured workers.
Effective for plan years beginning after December 29, 2022.

SIMPLE and SEP Roth IRAs – Currently, all plans that allow pre-tax employee contributions are permitted to accept Roth contributions except SIMPLE IRAs. Now SIMPLE IRAs are allowed to accept Roth contributions. In addition, employers will be able to offer employees the ability to treat employee and employer SEP contributions as Roth (in whole or in part).
Effective for taxable years beginning after December 31, 2022.

Optional treatment of employer matching or nonelective contributions as Roth Contributions – Under current law, plan sponsors are not permitted to provide employer matching contributions in their 401(k), 403(b), and governmental 457(b) plans on a Roth basis. Matching contributions must be on a pre-tax basis only. The Act now allows defined contribution plans to provide participants with the option of receiving matching contributions and nonelective contributions on a Roth basis.
Effective for contributions made after December 29, 2022.
Applicable plans: 401(k), 403(b) or governmental 457(b) plan

Overall, the goal of this new legislation is to make saving for retirement easier and more accessible while simultaneously tackling issues that may have prevented employees from actively participating in their workplace retirement plan.

Any plan amendments needed as a result of this new legislation must be adopted by December 31, 2025 (or December 31, 2027, for certain governmental and collectively bargained plans), unless an extension is provided by the Department of Labor (DOL) or the Internal Revenue Service (IRS).

RPC is working diligently to change our operations to comply with the mandatory SECURE 2.0 provisions that are effective now, in 2023. However, the IRS and the DOL must provide guidance on how to administer most of these provisions. The IRS is tasked with providing guidance not only for the 2023 provisions, but provisions that are effective in 2024 and thereafter. Employers may want to delay implementation of any optional provisions until further guidance is provided.

We will be providing more information around the SECURE 2.0 Act in the coming weeks.

Taxes in Retirement

With Social Security benefit payments increasing nearly 9% this year, you may need to rethink your retirement tax planning.


If you started working part-time to offset some of the recent price inflation, this increase in your Social Security payments might make some or more of it subject to federal income taxes. If you file as an individual and your combined income is between $25,000 and $34,000, up to half of your benefit may be subject to income taxes. Social Security defines combined income as your adjusted gross income, plus nontaxable interest, plus one-half of your Social Security benefit.


With the possibility of being in a higher tax bracket this year, due to increased Social Security benefits, consider cutting back on withdrawals from your qualified retirement plans. If you can avoid taking more than your required minimum distribution (RMD) in 2023, you might be able to limit your tax liability.

If you need more than your RMD, consider pulling funds from a taxable brokerage account where you’ll pay the lower long-term capital gains rates if you held investments for more than a year.

Also consider qualified withdrawals from a Roth IRA, a Roth 401(k), or a health savings account (HSA), which would not be subject to federal income tax and wouldn’t have an impact on how your Social Security benefit is taxed.

This year’s cost of living adjustment can help you keep up with higher prices. And in the short run, managing your withdrawals may help you smooth out the tax bumps during a period of high inflation.

Figuring out withdrawals from retirement and brokerage accounts can be complicated, so it may help to work with an advisor. But even if you do it yourself, try to withdraw from your Roth and HSA accounts last, allowing those assets to grow tax-free longer. Withdrawals from all three types of accounts in the same year can help manage combined taxable income.