New Department of Labor 401(k) disclosure rule kicks in Sept. 18
Time to take a new step to ensure employees remain retirement ready, courtesy of a new federal 401(k) disclosure rule.
And to help, the Department of Labor (DOL) just released new FAQs that spell out the timing of its execution, effective Sept. 18.
2 new disclosures
Under the new 401(k) disclosure rule, your company has two new things to provide employees with annually. Participants should receive an estimate of the monthly amount their 401(k) balance would pay out as both a:
- life annuity, and
- qualified joint and 100% survivor annuity.
The timetable to comply depends on your type of retirement plan:
- For participant-directed plans, you’ll need to provide these by the second quarter of 2022.
- For non-participant-directed plans, you’ll need to do it in calendar year 2021.
Open enrollment is almost here and staffers will be plenty busy with that. So give them a heads up on this new disclosure requirement so they don’t get caught by surprise.
- Share on
Free Training & Resources
Further Reading
Layoffs, inflation, AI … these are just some of the factors making employees feel more stressed about their jobs and career future. S...
While the IRS can assess penalties under the Affordable Care Act (ACA), it can’t issue the certifications required beforehand, a court ha...
Earned wage access, also known as on-demand pay, is being leveraged by your peers as a key recruitment and retention tool for workers who m...
Reassessing HSA employer contributions can increase participation while capturing meaningful payroll tax savings. Employer contributions to...
Environmental, social and governance (ESG) ratings of companies was never as popular as many in the media made it out to be. And the more t...
Employers sponsoring pre-approved 401(k) and other defined contribution plans can begin filing for individual determination letters startin...
