Topic: 401(k) Plans

IRS Issues COVID-19 Relief on Mid-Year Changes to Safe Harbor 401(K) Plans

The Internal Revenue Service (IRS) issued helpful guidance to plan sponsors of safe harbor 401(k) plans that are considering reducing or suspending safe harbor employer matching contributions or safe harbor nonelective contributions as a result of the COVID-19 pandemic.  As explained below, IRS Notice 2020-52 provides temporary relief from certain requirements that would otherwise apply for making mid-year amendments to safe harbor 401(k) plans.

Read More

DOL Information Letter Allows Private Equity Investments in Defined Contribution Plans

On June 3, 2020, through the issuance of an information letter (the “Letter”), the Department of ‎Labor (the “DoL”) effectively expanded the realm of investment alternatives for 401(k) plans ‎and other defined contribution plans to include private equity. The guidance is clearly a boon to ‎the private equity industry, which can now count 401(k) plan participants as a significant new ‎class of investors.‎

Read More

Legislation Proposed to Allow Employers to Make Matching Contributions on Student Loan Repayments

Two bills have been introduced in the Senate that would allow employers to make matching ‎contributions under 401(k), 403(b), governmental 457(b) and SIMPLE plans as if the ‎participant’s student loan payments were salary reduction contributions. On May 13, Senator ‎Ron Wyden (R-OR) reintroduced the Retirement Parity for Student Loans Act (Student Loan ‎Act) and Senators Ben Cardin (D-MD) and Rob Portman (R-OH) reintroduced the Retirement ‎Security & Savings Act.

Read More



Email the Editors

Click here to Email the Editors

Locke Lord LLP

For the latest information about our Firm visit