August 23, 2018

Plan Sponsors Should Consider 401(k) Amendment

Lori M. Atkin

In an article for Law360, Employee Benefits Senior Counsel Lori Atkin details the final regulations issued by the Internal Revenue Service (IRS) on July 20, 2018, that affect the uses of 401(k) plans. The change allows forfeitures under 401(k) plans to be used to make qualified nonelective contributions (QNECs) and qualified matching contributions (QMACs), which may lower the yearly amount of overall contributions a plan sponsor must make from corporate assets.

Ms. Atkin provides guidance to plan sponsors on how to adopt the plan amendments if they have not already done so.

READ: Plan Sponsors Should Consider 401(k) Amendment

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