The IRS has finalized key regulations under the SECURE 2.0 Act that will reshape how 401(k) catch-up contributions work, especially for high earners. These changes go into effect on January 1, 2026, and plan sponsors need to start preparing now. At Navia, we’re here to help you stay ahead of compliance and keep your retirement plans…
Regulatory Update: A Major Shift in Direction The Department of Labor (DOL) issued Compliance Assistance Release No. 2025-01 on May 28, 2025, formally rescinding its 2022 guidance that urged plan fiduciaries to exercise “extreme care” when including cryptocurrency, or “crypto,” in 401(k)/403(b) investment lineups. This shifts the landscape back to a neutral posture, while affirming…
Beginning January 1, 2026, certain higher-paid employees must make all catch-up contributions to their 401(k), 403(b), or 457(b) plan as Roth contributions (after-tax). Who This Affects Why This Matters for Payroll From the Recordkeeper’s Perspective Nothing changes in how Navia processes your contributions – we simply apply pre-tax or Roth amounts to the correct source…
Retirement planning is often seen as a long-term concern, but for employers, it’s a pressing priority. Helping employees prepare for a financially secure future not only reduces stress but also builds trust and loyalty within the workplace. However, despite the clear benefits, many workers struggle to save adequately for retirement – a challenge deeply rooted…
The One Big Beautiful Bill (OBBB), introduced as H.R. 1 in the 119th Congress and advanced through the budget reconciliation process pursuant to House Concurrent Resolution 14, was originally crafted as a sweeping legislative package encompassing tax, health, and social policy reforms. However, following review by the Senate Parliamentarian under the Byrd Rule, several proposed Health Savings Account (HSA)…
Unlock the Potential of Open Enrollment to Boost FSA and HSA Participation Open enrollment is your annual opportunity to reshape your employees’ benefits experience. It’s the perfect time to educate your team, highlight the advantages of your offerings, and encourage participation in benefits like Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs). While health…
Starting January 1, 2026, Highly Paid Individuals Must Make Their Catch-Up Contributions as Roth. The SECURE 2.0 Act impacts catch-up contributions for 401(k), 403(b), and 457(b) plans. Participants who earned more than $145,000 in FICA wages in the year must make any catch-up contributions in the following year as Roth contributions. For example, an employee…