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Learn MoreOur experienced staff provides retirement plan services as needed
First American Bank offers a wide range of consulting services for company retirement plans. Whether we serve as your official third-party administrator or not, we can work with you to ensure your plan continues to meet its objectives and remains compliant. In addition to services listed below, our staff may also represent you before the Internal Revenue Service, the U.S. Department of Labor, and the Pension Benefit Guaranty Corp. on various plan matters. These services include but are not limited to:
- Audit assistance
- Analysis and redesign of existing plans
- Cost impact studies due to plan amendments, changes in law or regulations, hiring of new employees, acquisitions, etc.
- Fiduciary duties and responsibilities
- Cost analyses in regard to collective bargaining negotiations
- Optimal application of credit funding balances in pension plans
- Restriction upon pension plan benefits when required
- Plan terminations/Partial plan terminations
- Plan mergers and spinoffs
- Assistance with late Form 5500 filers through the Delinquent Filer Voluntary Compliance Program (DFVCP)
- Assistance with the IRS Employee Plans Compliance Resolution System (EPCRS) to remedy mistakes and avoid the consequences of disqualification through either the Self-Correction Program or the Voluntary Correction Program
- Compliance services for self-administered plans
Disclosures
Not FDIC Insured | Not Bank Guaranteed | May Lose Value | Not Guaranteed by Any Government Agency | Not a Bank Deposit
Prior to 2020, you were required to start taking Required Minimum Distributions (RMDs) by April 1 of the year following the year in which you attained age 70 ½. That rule still applies if you attained age 70½ by the end of 2019. Once you are required to begin taking RMDs, you must continue. For 2020, the SECURE Act increased the age to begin RMDs to age 72 and then subsequently with the passing of SECURE Act 2.0 beginning in 2023, the age has been raised again. The schedule below outlines at what age you must begin taking RMDs.
Date of birth before 7/1/1949, RMD starts at age 70 ½. Date of birth 7/1/1949 to 12/31/1950, RMD starts at age 72. Date of birth 1/1/1951 to 12/31/1959, RMD starts at age 73. After 12/31/1958, RMD starts at age 75.
The same April 1 deadline applies. Thereafter, you must take RMDs annually on or before December 31. Note, two required distributions will be issued your first year if you wait until the period January 1 to April 1 to begin your RMDs. You may avoid two taxable distributions in the first year by taking your first withdrawal on or before December 31 of the year in which you attain the applicable age as shown above.
However, if you are still working, you are not required to begin RMDs from your employer sponsored plan until April 1 of the year following the year in which you terminate employment. This exception does not apply if you own more than 5% of the employer, nor does it apply to IRAs.
a. $23,000 for 2024;
b. the maximum deferral amount allowed under the terms of the plan; or
c. the amount that allows the plan to meet the required nondiscrimination tests.
In addition, if you attain age 50 or older by December 31, you may defer an additional $7,500 catch up contribution.
