Insights: Newsletter

As we wrap up 2024, I'm filled with gratitude and excitement following our most successful Manufacturing Day event yet. The energy and engagement from all who attended made it truly special, and I want to personally thank each of you who joined us. Your participation and enthusiasm continue to make this annual gathering a cornerstone event for our manufacturing community. If you missed it, you can view the presentations here: www.reacpa.com/mfg-day-video.

The Fall 2024 Benefits Insights newsletter outlines key 2025 retirement plan adjustments, including increased elective deferral limits ($23,500), new catch-up contribution options for ages 60-63, and guidelines for timely deposits and Required Minimum Distributions. The newsletter also provides important compliance deadlines for plan administrators. Keep reading to learn more.

Where has the year gone? It's hard to believe we are less than 4 months away from 2025. As you gear up for business in the new year, there are several key areas for business owners to focus on: people, employee engagement, work-life balance, automation, customer experience, data analytics, cybersecurity, and data protection. Succeeding in 2025 will require more than just keeping up with trends; the key is proactively adapting and being willing to innovate.

The Retirement Security Survey, conducted by Principal, asked participants why they weren't enrolled in the plan and a surprising number thought they were. Even though plan provisions such as automatic enrollment and employer matching have a positive effect on plan participation, communication can also be a powerful tool. Keep reading to learn more.

As we approach the second half of 2024, I am pleased to report that the US economy entered the year on a strong footing. Multiple indicators of business activity, labor markets, sentiment, and inflation have been moving in a favorable direction. However, we must remain vigilant of headwinds such as rising consumer debt and elevated interest rates that may temper economic growth. As mentioned in our earlier edition, I see this year as one of renewed potential, with the economy regaining its footing and businesses poised for growth, despite uncertainties surrounding new tax policies and the upcoming election.

These provisions allow an employer to withhold deferrals from the employee's pay without the employee making an election. By utilizing automatic enrollment, an employer can boost participation while simultaneously simplifying the enrollment process.

We are off to a good start in the new year! I hope 2024 has begun with optimism and prosperity for you and your businesses. Reflecting on the challenges of 2023 – from inflation to supply chain disruptions – it’s inspiring to see how resilient and adaptable we’ve all been. Looking ahead, I see a year of renewed potential, with the economy regaining its footing and businesses poised for growth despite the uncertainties of new tax policies and the upcoming election.

Plans must be tested each year to ensure that they are compliant with the laws governing retirement plans. To understand the testing performed for your plan, it may be helpful to review some of the terms that are commonly used. First, let’s examine how your plan’s noteworthy individuals are identified.

As you gear up for business in 2024, take a look at recent history to understand the changes and challenges businesses have faced: Inflation, supply chain interruptions and delays, rising interest rates, the threat of recession, and global instability.

On November 1, 2023, the IRS announced the Cost of Living Adjustments (COLAs) affecting the dollar limitations for retirement plans for 2024. In October, the Social Security Administration announced a modest benefit increase of 3.2%. Retirement plan limits also increased over the 2023 limits. Keep reading to learn more.