JULY 2024 EMAIL TO CLIENTS & FINANCIAL ADVISORS
Definiti publishes articles throughout the year for clients and advisors. Whether it’s information detailing SECURE 2.0 provisions, or a resource on how to find missing participants, Definiti is here to help. Here’s our most recent articles.
SPOTLIGHT
401(k) vs. 403(b): Understanding the Differences
When offering retirement plan benefits, selecting the right type is crucial for both employers and their employees. 401(k) and 403(b) plans are two popular retirement savings vehicles. Understanding the distinctions between the two can help nonprofit organizations align their plans with organizational goals and provide the best options for plan participants. Read more.
How Your TPA and Financial Advisor Help Ease
Retirement Plan Concerns
Employers shoulder significant responsibilities when it comes to managing their employee benefit programs. They invest time in researching, evaluating and choosing benefit providers and ongoing program management, involving tasks like enrollment processing, compliance, claims resolution and data management. Employers must also create communication plans, develop content and use various channels to tell employees about their benefits. Read more.
Definiti takes the guesswork out of selecting the right workplace retirement plan and keeping it compliant, so employers can deliver retirement solutions everyone can count on.
THINGS TO KNOW
Mandatory Roth Catch-up Contributions
Under SECURE 2.0, catch-up contributions under a 401(k), 403(b) plan, or governmental 457(b) plan must be designated as Roth contributions for participants who earned more than $145,000 in the prior year. Those participants who earned less than $145,000 in the prior year must also have the option for Roth in their catch-up contributions.
Learn more here, or ask your Definiti Retirement Plan Consultant for more information.
Optional Secure 2.0 Plan Previsions Recommendations
SECURE 2.0 included 90+ provisions that could have an impact on your plan. Definiti has carefully reviewed all the provisions, and we’re making recommendations on how you may want to amend your plan to adopt the new optional provisions. Keep in mind some provisions require more guidance before they are final, and many provisions won’t become effective until 2025, or later.
Visit the Definiti SECURE 2.0 webpage for timely news on deadlines, provision details and recent updates.
DOL Changing How Participants Are Counted
For the 2023 Plan Year, the methodology for counting participants has changed. Employees are counted as “participants” if they have an account balance at the end of the Plan Year. Prior to this change, a participant was an employee who was “eligible” for the Plan; regardless of whether or not they actually participated in the Plan. Read more.
Should Plan Sponsors Ask for a Mid-Year Review of the Plan?
Generally speaking, retirement plans may only need to be tested once each year. However, there are situations when a mid-year review is a good idea. Contact your Definiti Retirement Plan Consultant (RPC) if you’re considering buying or merging with another company this year or if you’ve experienced dramatic growth in your employee count. Your RPC can help you determine now if any changes need to be made to your plan to accommodate your changes.
Did You Miss the Definiti Academy?
The Definiti Academy webinar series helps plan sponsors like you grow more confident in managing a retirement plan. Our Spring Semester webinars included sessions on Definiti’s recommendations on how to adopt new optional SECURE 2.0 provisions into your plan, a tour of PlanSponsorLink, and new research on what employees want from their benefits plan. Check out these replays and other session topics here.
Please save the date for our next Definiti Academy. The fall semester will be November 12–13, 2024.
Billing Questions?
Definiti’s easy-to-use system gets your billing questions resolved quickly. Email billing questions to BillingTeam@definiti.com. You can ask about the status of an invoice or learn about payment options. A dedicated member of the Billing Team will respond to your request promptly.
QUESTIONS? CONNECT WITH US
For retirement plan sponsors, your RPC is the first and best resource for information about your plan. Reach out to them with questions, and they’ll be happy to help. For advisors, contact your sales representative or Regional Sales Consultant.
If you’re currently not partnering with Definiti, call 1-888-912-3653 or email If you’re currently not partnering with Definiti, call 1-888-912-3653 or email sales@definiti.com. We’re here to start the conversation with you about our plan sponsor and financial advisor services.
