Members of the House of Representatives and the Senate Thursday issued a “discussion draft” for the much-anticipated bill applying technical corrections to the SECURE 2.0 Act of 2022. Restoring Catch-Ups The bill would make corrections to several mistakes made in the hallmark retirement law. First and foremost, it corrects the most egregious error of SECURE …

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What You Need to Know The IRS is delaying, until 2026, a rule mandating that catch-up contributions for certain high-income taxpayers be treated as Roth contributions. A $145,000 income threshold, indexed for inflation, is not tied to existing definitions of highly compensated employees. Starting in 2025, a separate catch-up contribution will be permitted for taxpayers …

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The construction industry added 19,000 jobs on net in July, according to an Associated Builders and Contractors analysis of data released today by the U.S. Bureau of Labor Statistics. On a year-over-year basis, industry employment has expanded by 198,000 jobs, an increase of 2.5%. Nonresidential construction employment increased by 10,600 positions on net, with growth …

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ADVOCACY Fifty retirement-related organizations sent a letter to the Treasury Department and specifically the IRS on July 19 requesting “transition relief” for Section 603 under the SECURE 2.0 Act. The signers—representing advocacy organizations (including the American Retirement Association), large corporations and municipal pension funds—asked for more time to comply with a requirement that catch-up contributions …

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Agency seeks to increase awareness of requirements related to federal contracts The U.S. Department of Labor’s Wage and Hour Division will begin offering online seminars for contracting agencies, contractors, unions and workers on the requirements for paying prevailing wages on federally funded construction and service contracts. According to the agency, which said the seminars are …

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Most of the Construction Gains Occurred in the Residential Construction Sector While Firms Now Pay Workers 19 Percent More Compared to the Average Job as they Struggle to Recruit New People The construction sector added 15,000 jobs in April while the sector’s unemployment rate fell to a record low for the month and the number …

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Apart from the recent market volatility, a new study shows significant growth in account balances for 401(k) plan participants who consistently participate—especially for younger workers.   According to the study from the Employee Benefit Research Institute (EBRI) and the Investment Company Institute (ICI)—What Does Consistent Participation in 401(k) Plans Generate? Changes in 401(k) Plan Account …

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The Internal Revenue Service proposed new rules on Monday  formalizing the timing and use of forfeitures in qualified retirement plans by plan sponsors. The proposal, which would affect participants in, beneficiaries of, administrators of, and sponsors of qualified retirement plans, according to information published in the Federal Register. It would more clearly define how retirement plans …

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  Jackson Lewis’s Tia Martarella analyzes provisions of SECURE 2.0 Act of 2022 that are intended to increase employee participation in retirement plans, and their potential impact on previously underserved populations. Americans are 12 to 15 times more likely to save for retirement if they have access to a retirement savings plan at work. Yet …

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While it came down to the wire, both the House and Senate have now approved the much-anticipated SECURE 2.0 Act of 2022 as part of the mammoth $1.7 trillion omnibus spending bill. For months, it was anticipated that Congress would attach a final SECURE 2.0 package to a year-end spending bill, but that wasn’t confirmed …

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Announcement of the official limits is still a few months away, but early projections from Mercer suggest that nearly all qualified retirement plan limits will increase by unprecedented amounts next year. The 2023 limits will reflect increases in the Consumer Price Index for All Urban Consumers (CPI-U) from the third quarter of 2021 to the …

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  As inevitable as retirement is, why is properly preparing for it so difficult? It could be that participants are preoccupied with other concerns. Most (70%) of the respondents to a recent Schroders retirement survey said they don’t have enough savings to add to a retirement plan, while others reported that they have other financial …

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Why Choose a Davis Bacon Pension Plan from Davis-Bacon Pension Plans, Inc If you know anything about a Davis Bacon Pension Plan, you may know that it is a great option for a variety of reasons. It can be a difficult decision to understand the different legal regulations when it comes to retirement plans, which …

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Prevailing wage laws were put into place during the Great Depression. The purpose was to prevent unfair practices when it came to labor in non-union situations. Because of this, we have prevailing wage pension plans available. Understanding the Prevailing Wage Various laws surround this particular topic. This includes federal prevailing wage laws, state prevailing wage …

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The Davis-Bacon Act is a federal prevailing wage law. It is governed by the Department of Labor and is applied to both contractors and subcontractors who perform work on various government projects. There are specifics in terms of this act, as these projects must be in excess of $2,000 for all of the construction, repair, …

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Anyone that owns a business knows that along with it comes taxes, rules, and regulations. If you work in an industry where the government has ruled that you are required to pay a prevailing wage, then this is only one of the many costs you may accrue.   When running a business there are operational …

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In 1931, The Davis Bacon Act was put into law requiring companies that perform work on federally-funded jobs to pay all employees working on the job a prevailing wage. The prevailing wage is paid as a per-hour wage and a per-hour cash equivalent value of benefits. These wages are set by the United States Department …

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When establishing a 401(k) plan a business owner has a variety of employer contribution options that he or she may choose to make to the plan. These options range from no contribution to funding the maximum contribution for all employees. Whichever option the business owner chooses to go with can have a significant impact on …

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COVID-19 has caused economic pain for businesses throughout the United States. If you own or operate a company, you understand the challenges you’re facing to remain viable. If you’re hoping to find a solid way to survive COVID-19’s impact on the world, it’s time to consider methods for reducing your costs and improving efficiency. Businesses …

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If you run a business that relies on revenue from government contracts, you understand that federal regulations often impact your ability to generate profit. The government requires companies bidding on federal contracts to provide a ‘prevailing wage’ to their staff members. This means that businesses bidding on government contracts typically have higher operational costs than …

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If you’re a business owner that frequently bids on government contracts, you’re likely aware of the prevailing wage regulations. Businesses that bid on government contracts must pay a prevailing wage to their employees, which can drastically increase the cost of staff for many businesses. Fortunately, Davis Bacon pension plans allow business owners to reduce costs …

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If you secure a federally-funded construction contract, you’ll need to pay your workers the prevailing wage. The exact prevailing wage varies depending on skill level, role, and a host of other factors. It’s critical to classify your workers correctly if you want to avoid severe financial implications. Many business owners ignore the severity of incorrect …

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If you’re a construction business owner, you’re already aware that you must pay the prevailing wage to laborers involved in federal contracts. This hurdle often proves to be a significant stumbling block for businesses that are not equipped to pay higher wages. Fortunately, using a Davis Bacon Pension Plan can help you offset some of …

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