Employee Benefits & Executive Compensation Newsletter - November 2024

These periodic newsletters are provided to help employers stay informed regarding the latest legal developments and policy updates in employee benefits and executive compensation. This issue addresses the following six key topics that could impact your organization and your benefit plans:

• IRS Releases 2025 Limits for Benefit Plans
  The IRS has announced cost-of-living adjustments for 2025, including an increase in 401(k) and 403(b) contribution limits to $23,500, unchanged catch-up contributions at $7,500, and a higher Social Security Wage Base of $176,100. Click here to read more.
• Key SECURE 2.0 Act Updates for Defined Contribution Retirement Plans
  For 2025, employers should be aware of a few SECURE 2.0 Act changes that apply to defined contribution retirement plans, such as 401(k) and 403(b) plans. The changes include updated rules for long-term part-time employees, automatic enrollment requirements for new defined contribution plans, and two updates for catch-up contributions. Click here to read more.
• Forfeiture Funds: Legal Requirements, Permitted Uses, and Litigation Risk Management
  A discussion on the legal constraints, potential applications, and best practices for managing forfeiture funds in retirement plans, with a focus on minimizing litigation risks. Click here to read more.
• Final Rule under MHPAEA Clarifies NQTL Comparative Analysis Requirement
  New guidance under the Mental Health Parity and Addiction Equity Act (MHPAEA) clarifies how plan sponsors must document and justify nonquantitative treatment limits (NQTLs) to ensure compliance and avoid penalties. Click here to read more.
• Uncertainty on Health Care Rules Amid Administration Change
  Recent election results could lead to changes in health care regulations, leaving employers uncertain about how to prepare for potential shifts in compliance and plan management requirements. Click here to read more.
• Year-End Corporate Transparency Act Reporting – Benefits Highlights
  Businesses must get ready to meet new reporting requirements under the Corporate Transparency Act by year-end, ensuring accurate disclosure of ownership information to avoid penalties. Click here to read more.

For more information or if you have any questions about the information in this newsletter, please contact your Quarles & Brady counsel or:

• • Sarah Sise: (312) 715-5125 / sarah.sise@quarles.com
  • Lauren Schuster: (314) 696-5115 / lauren.schuster@quarles.com
  • Colleen Essid: (202) 372-9567 / colleen.essid@quarles.com

• • Filip Grzelak: (202) 372-9564 / filip.grzelak@quarles.com
  • Lennox Mark: (312) 715-5236 / lennox.mark@quarles.com