Seven percent said the most impact would come from having to communicate the changes – and 12% said that “all” of the bill would be impactful. Other provisions cited included the repeal of the multiple use test, the ESOP dividend deductibility extension, tax credits for small employer expenses, vesting acceleration, and 457 rollovers to IRAs.
Verbatims from the survey:
“The 404 and 415 changes will have the largest impact at our place of employment; our employer contribution is so heavy that we are limited to contributing 10%.”
“The provision that allows employees age 50 and older to contribute an additional $1000. These employees have the highest deferral percentage and make up 1/3 of our population.”
“The provision that would have the most impact on my job would be the 402(g) “catch-up” provision for older workers. As I see it we have 2 choices – spend all of our time trying to make our systems handle this (which they can’t), or spend all of our time explaining to our older workers why we are not allowing catch-ups. What a nightmare.”
And our favorite: “The biggest impact is going to be communicating to all 7,000 employees about the new provisions and then explaining that other rules will probably prohibit them from taking advantage of the higher dollar deferral maximum amounts.”
Thanks to everyone who participated in our survey!