With the circumstances that resulted from the global COVID-19 pandemic, there is no shortage of change. Between tax laws, health and safety guidelines, and short staffing, it is no surprise that the last thing on your mind could be your employer-sponsored retirement plan. Hawkins Ash CPAs audited nearly 100 employee benefit plans in 2021 and throughout the majority of the plan audits, we observed a substantial growth in plan assets, some even doubling in size. Throughout 2020 and 2021, retirement plans nationwide have seen the largest increase in participation and contributions in history. With this, maximizing the employee’s benefit and minimizing the employer’s cost comes with all new importance. The good news with all these changes is that you have time!
Though your plan may not yet be amended to include the provisions of the CARES and/or SECURE Act(s), the plan administrator, at their discretion, can permit the use of those provisions at any point. These provisions include many benefits, like increased loan limitations (up to $100,000), waived required minimum distributions (RMD’s) for 2020 and making long term, part-time employees eligible to participate in retirement plans. The plan sponsor has the option to adopt the CARES and/or SECURE Act(s) until December 31, 2022, and may apply the amendment(s) retroactively. Though you may have time, do not wait to reach out to your third-party administrator or your Hawkins Ash representative to help answer any questions you may have and to determine the best course of action for your plan.